Stocks Soar, Shorts Squeezed; Bullion, Bitcoin, & Black Gold Bruised
The pointless search for catalysts or market-moving headlines hit a wall today for sure as US equities went panic-bid vertical at the US cash open on the basis of absolutely nothing.
- China (negatively) snubbed Trump's trade deal overnight, demanding tariffs removed before Ag buy.
- China (negatively) saw CPI surge, somewhat reducing option of brad-based stimulus
- Brexit (positively) was reported as being closer to becoming a deal.
- Fed Repo bailout (negatively) surged to its highest since September.
- Tariffs (positively) did not get implemented today (which is, of course, old news).
- Earnings (negatively) signaled ugliness persists for GS and WFC.
- Earnings (positively) beat (with UNH, JPM and JNJ helping support The Dow).
- IMF (negatively) downgraded global growth to weakest since Lehman.
But the machines went full Monty (Python) today...
Because the US cash equity market open is now 'bullish'...
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Chinese stocks were broadly lower overnight...
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Source: Bloomberg
European stocks benefited from the US spike and positive Brexit headlines...
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Source: Bloomberg
US equities managed to push back above the pre-trade-deal levels, but Small Caps were barely able to hold that gain...
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S&P 500 algos was utterly bemused by the 3,000 level all day (S&P back above 3,000 for first time since Sept 24)
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A juicy short-squeeze starting at the US cash open provided just the momentum ignition needed to cross that 3k level...
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Source: Bloomberg
Bank stocks rallied for the 5th straight day...
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Source: Bloomberg
And just look at Goldman's big reversal...
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Source: Bloomberg
And Semis surged to a new record high...
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Source: Bloomberg
VIX was clubbed like a baby seal, back to a 13 handle - its quad witch lows...
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Bonds are back from celebrating Columbus Day and were unceremoniously dumped from overnight highs in price (lows in yield)...
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Source: Bloomberg
30Y Yields pushed up to Friday's highs, then fell modestly...
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Source: Bloomberg
The dollar was more volatile today but ended the day modestly lower...
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Source: Bloomberg
Cable squeezed higher once again - to its highest since May 16th...
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Source: Bloomberg
This is the biggest 4-day surge in sterling since Dec 2008 (and 2nd biggest since July 1989) - BUT note where today's surge stalled - at the bottom of the initial plunge in cable after the Brexit vote...
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Source: Bloomberg
Cryptos were all lower on the day...
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Source: Bloomberg
Commodities were down across the board today...
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Source: Bloomberg
WTI was very volatile today (ahead of tonight's API inventory data)... critically crude did not follow stocks...
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Gold futures tagged $1500 for the second day in a row, then tumbled (for the 3rd day in a row)...
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Finally, there's a resurgent demand for Fed liquidity...
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And soaring recession risk...
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Source: Bloomberg
"probably nothing"
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