Sometimes better not to play at all...
Video length: 00:04:05
Bonds & Stocks both slammed lower today - the worst combined day since 11/9/16...
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Trannies ended the day higher but the rest of the major US equity indices "sold the news"...Small Caps worst...
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Futures show the excitement better over the last two days (not the dip in Nasdaq to unch from Friday before bouncing)...
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High Tax companies did manage to outperform for the second day in a row but it was not exactluy breathtaking...
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FANG Stocks sank into the red for the week...
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LongFin rallied (despite CRCW's suspension)...
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Banks drifted (despite the curve steepening) with Goldman giving back all of yesterday's gains...
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The last two days have seen the biggest spike in Treasury yields since the election (but note that yields started to roll lower after the tax vote)
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And the biggest steepening of the yield curve since before the election... (NOTE - the long-bond was not helped by comments on the more long-dated issuance by Germany pushing their curve steeper)...
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Note that 30Y Yields are following a very similar pattern to November's FOMC...
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Don't get too carried away on this bond yield rip though - long-bond speculators were at near record longs and had added to net longs the most since 2007 - so it's a positional squeeze, not a trend change...
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The Dollar index faded lower after the House tax vote to end the day lower...
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Commodities were all marginally higher on the day with gold leading the week...
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Gold was steady on the day as Bitcoin slipped lower...
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But while bitcoin was lower on the day, most of the rest of the crypto space rallied... (all major cryptos dropped overnight on the Korean exchange bankruptcy)
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And if you're feeling really brave - here is your Bitcoin arb of the day... Buy BTC Futs, Short GBTC (good luck!)...
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Finally we note that the T-Bill curve across year-end is inverted and starting to signal some government shutdown concerns...
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Bonus Chart: The Death Cross of Rationality...
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