Bonds & Bullion Bid As Trade-Deal-Delay Stalls Stocks

The odds of a US-China trade deal slipped lower today (though remain high) after reports that the signing may be delayed…

Source: Bloomberg

But, don’t stop believing it will happen…

[youtube https://www.youtube.com/watch?v=1k8craCGpgs]

The Dow and S&P trod water near record highs but Small Caps underperformed (Trannies were bid into the last few minutes)…

 

As short-squeeze ammo appears to have run out…

Source: Bloomberg

US banks continue to tick higher with the steepening yield curve…

Source: Bloomberg

But, bank stocks have decoupled from credit in the last week…

Source: Bloomberg

Cyclicals were sold as rotation into defensives dominated today’s trade…

Source: Bloomberg

The VIX term structure is very steep – a steepness that has not ended well in the past…

Source: Bloomberg

Chinese stocks were weak overnight…

Source: Bloomberg

European stocks are nearing a 20-year resistance level…

Source: Bloomberg

Treasury yields fell on the day with the long-end outperforming (30Y -4bps, 2Y -2bps)

Source: Bloomberg

A strong 10Y auction helped send yields lower…

Source: Bloomberg

The Dollar managed to end higher on the day as the same US session buying appeared again…

Source: Bloomberg

Cryptos were mixed with Bitcoin and Ether modestly lower and Bitcoin Cash and Litecoin higher…

Source: Bloomberg

Commodities reversed yesterday’s action with crude and copper down and PMs higher (despite a dollar rally)

Source: Bloomberg

Gold rallied but remains below $1500…

 

And WTI tumbled back below $57 after a big surprise crude build…

“Got Milk?” – no inflation though.

Source: Bloomberg

Finally, you have to laugh…

And stocks are soaring as The Fed’s balance sheet rises for the 9th week in a row – adding $260bn, the biggest such surge since May 2009…

Source: Bloomberg

It’s Not QE though!!!