Bond bulls just had a 'Cliffhanger' moment...

Payrolls, Powell, and Panic at the Auction have sparked the biggest bond bloodbath since Trump was elected in Nov 2016...

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And as bond yields exploded higher, something odd happened... stocks dumped too...

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Suggesting Risk-Parity funds forced to delever/rebalance as the bond legs blow up.

30Y Yields exploded to 6-week highs...

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The Dow managed to hold gains (thanks to United Health jumping on Trump's backdown) and S&P limped back into the green but Nasdaq ended red. Small Caps were worst on the day with Trannies best...

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NOTE - around 1300ET, Trump tweeted about China disappointment and sparked selling.

Trannies and Small Caps remain red on the week.

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Dow topped 27k for the first time...

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And President Trump loved it...

The S&P closed at 2999.89!! As one veteran trader noted, "this is all gamma trap!"

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Defensive stocks were pummeled (interestingly catching down to unch for the week with Cyclicals)...

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Bonds weren't the only bloodbath of the day; Bed, Bath, & Beyond was battered...

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UnitedHealth surged on the White House backpedal...

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Chinese stocks have gone nowhere since Monday's dump...

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European markets continued to diverge dramatically with Germany slammed and Italy bid...

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Banks and the yield curve...

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Treasury yields exploded higher on the day with the long-end dramatically underperforming...

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The yield curve (3m10Y) remains inverted... just...

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The dollar ended marginally lower after scrambling up to unch after a weak overnight session...

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Cryptos were down modestly on the day with Bitcoin the only major that remains green on the week...

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With Bitcoin unable to scramble back above $12k for now...

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Commodities rolled over today as the dollar recovered

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Silver marginally outperformed gold today...

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But gold held above $1400...

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Finally, we note the following from Strategas:

"nearly all of the incremental news on China since the G-20 has been negative. There is no trade meeting set; China is questioning what the US said was agreed to .. The China hardliners seem to be taking over and trying to wait Trump out past the 2020 election."

And this tweet from China's current twitter mouthpiece:

"Congrats to American investors. But watch your President and don’t let him trigger recession with the trade war."

As we have noted numerous times, it's not the economy, or trade, or earnings, or sentiment... it's central bank liquidity, stupid!

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