Talk of global equity market bounces is laughable. Here's a scorecard of global stock market performance in the past year highlighting the drawdown in major equity indexes from their respective 2015 highs.
Not good.
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MSCI World Index: -18.3%
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China's Shanghai Comp: -45.1%
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Spain's IBEX: -31.3%
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Japan's Nikkei: -23.1%
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Germany's DAX: -26.5%
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France's CAC 40: -22.2%
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U.S. Russell 2000: -24.4%
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U.S. S&P 500: -11.9%
Last week's "bounce" in U.S. equities was far from a vote of confidence. It came on no-volume.
Below is a quick smattering of crashing global financial markets and their "bounces" for context...
Japan...
India...
Germany...
"1-day bounce (yesterday) does not an arrest of the stock market crash make," Hedgeye CEO Keith McCullough wrote in a note to subscribers this morning. "Draghi’s Euro is actually up vs. USD this morning as Italian stocks continue to crash and the DAX falls back to -26% since the 2015 peak – should he jawbone daily?"
Oil...
"Context is critical here – after another -4.7% week for WTI, they bounced it +3-4% on the OPEC headline this morning and have since lost most of that. The risk range remains intact at $26.02-31.39 (don’t chase bounces, sell them!)," McCullough wrote.