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Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

Despite a textbook month-end markup in the US Equity market on #decelerating volume yesterday (painting the tape is, technically, illegal – but who cares anymore), something that wasn’t “supposed to happen”, happened.

Both Junk Bonds (JNK) and super-late-cycle and speculative High Yield Bonds got smoked on both an absolute and relative basis (to the FOMO Futures markups).

Why? A: More Sellers Than Buyers

It turns out for Junk (JNK) in particular, at -$1.05 billion worth of investor withdrawals, was the worst day of outflows, ever. And, by our objective Hedgeyes, ever remains a very long time.

But, “don’t fight the Fed”… so why?

For those of your less data-driven friends who don’t want the actual details on The Gravity of The Cycle, all they had to do was read the title of my Early Look last week: “Buybacks Collapsing, Bankruptcies Accelerating.”

Yes, that’s still happening. And yes, Earnings Season still has to happen too.

CHART OF THE DAY: Guess What Hasn't Surged... - 87