Bonds & Bullion Bid As Investors Buy Defensive Stocks At 2019 Record Pace

China continues to catch down to US and European stocks' liquidity-fueled pumpathon this year...

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Chinese markets slipped lower overnight, once again led by the tech-heavy indices...

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Shanghai Composite broke key support...

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And the small-cap, tech-heavy ChiNext has entered a bear market...

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European banks fell on disappointing TLTRO and talks of rate-cuts from ECB...

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Dragging European markets broadly lower.

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US markets were mixed early on with the overnight weakness (Mexico and China) ignored and bid into the green before the cash open. Small Caps and Trannies (most exposed to short-squeeze) were red from the start but the rest of the majors trod water holding modest gains (despite more Mexican tariff headlines)...

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This is The Dow's first 4-day win streak since March, the best week for stocks since November, and the best start to June since the year 2000!

4th day in row that stocks suddenly became cheap in the last hour of trading...

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Dow futures are up a stunning 1200 points from Sunday night's lows...

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Defensive stocks are up 4 days in a row - notably outperforming cyclicals in this ramp...

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This is the biggest 4-day surge in defensives since Dec 31st...

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"Most Shorted" stocks leaked lower for the second day (explaining Small Caps and Trannies underperformance)...

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Bonds were very mixed today with the action being the exact opposite of yesterday - long-end outperforming notably...

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NOTE - yields spiked on the tariff delay headlines but with no follow through

And Bond vol is exploding...

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The dollar index fell on the day, erasing yesterday's gains...

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Euro rallied on Draghi's not-dovish-enough disappointment...

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The peso spiked on headlines about delaying the tariffs (but slid back on reports expecting tariffs to hit)

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NOTE - stocks did not retrace like peso.

Cryptos were mixed today with Ripple up and Bitcoin Cash lower, but ugly on the week...

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Oil surged after the tariff delay headlines but PMs were higher as copper slipped (even with a lower dollar)...

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Gold gained for the 7th day in a row...(longest win streak since Jan 2017)

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Oil bounced on the day (after the tariff delay headlines) but some context is worthwhile...

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Finally, after a string of dismal macro data, Bonds & Stocks remain drastically decoupled...

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And, as Bloomberg reports, Retail traders are now the least bullish on the country’s equities since December, when the S&P 500 sank to a 20-month low, according to a weekly survey by the American Association of Individual Investors.

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What will payrolls say?