Best Year For Stocks Since 1987 Continues As Feb Economic Data Crashes Most In 2 Years

The S&P 500 continues its strongest start to a year since 1987...

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Despite the worst monthly drop in US Macro data in two years...

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This is also China's best start to a year since 2000...

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As China macro data collapses...

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And European stocks soared despite crashing economic data...

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The reason is simple... who cares about fundamentals when global money supply (and bank balance sheets) have suddenly reversed course and exploded higher...

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Notably, China massively outperformed the US and European markets in February...

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US equities ended the month weaker... with the S&P down for 3 straight days for the first time since Mid-December... this is also the 4th weak close in a row...

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US Small Caps outperformed in February...

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S&P was unable to maintain 2,800 once again...

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For a little context, February has seen a non-stop short-squeeze...

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2019 has seen the biggest short-squeeze since the March 2009 lows...

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Equity (VIX) and Credit (IGCDX and HYCDX) protection costs collapsed in February along with all sense of risk...

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The surge in the last two days (among the biggest yield spikes in 2019) pushed yields to the highs of the month (up between 7 and 10bps across the curve)...

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This is the 10Y yield's biggest monthly yield spike since Sept 2018.

And 10Y Yields broke out of their recent descending triangle pattern...

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The dollar index rose in February (first monthly gain since Oct 2018)...

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Yuan fell back to almost unchanged on the month after weak macro data overnight...

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Cryptos ended February in the green thanks to early and mid-month spikes...this is the first monthly rise for Bitcoin since July 2018.

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Copper & Crude surged in Feb, PMs limped lower...

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Gold continues to hold YTD gains through February - for the 6th year in a row - but overnight strength gave way quickly to weakness which pushed the precious metal red for Feb and ended the 4-month win streak...

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