Tech Stocks Soar, Bonds Snore, As Oil Suffers Worst Week In Six Months

Well that was a week…

[youtube https://www.youtube.com/watch?v=92i5m3tV5XY]

China was mixed on the week with larges caps flat to down and small cap tech soaring…

Source: Bloomberg

European stocks were also mixed with Germany dominating and UK lagging…

Source: Bloomberg

DAX tested up to its record high…

Source: Bloomberg

In the US the picture was a little less mixed with Small Caps unable to hold gains while Nasdaq soared (but late-day weakness today spoiled the party)…Nasdaq 100 is up 5 weeks in a row (and 14 of the last 16 weeks)

Source: Bloomberg

Dow crossed above 29,000 for the first time today…

Not a pretty day today…

Futures give a much clearer picture on the week’s craziness however…

Breadth has worsened as this market surged higher…

Source: Bloomberg

Defensives handily outperformed cyclicals on the week…

Source: Bloomberg

Value stocks relative to Growth plunged to a new cycle low

Source: Bloomberg

US Defense stocks soared to a new record high…

Source: Bloomberg

And then there’s AAPL (up 15 of the last 16 weeks)…

Source: Bloomberg

Credit protection costs collapsed further this week and equity protection also plunged with VIX back to a 12 handle…

Source: Bloomberg

Notably VIX Call volumes are soaring as the fear index plunges…

Source: Bloomberg

HY Bond risk dropped to its lowest since 2019’s April lows…

Source: Bloomberg

Treasury yields tumbled the last two days, leaving them unchanged since Monday’s close and marginally higher on the week…

Source: Bloomberg

30Y is back below the pre-Iran-missile-strike levels…

Source: Bloomberg

Bund yields also surged as the European corporate bond market saw a record-smashing $100 bn of issuance (and that means lots of rate-locks)…

Source: Bloomberg

The Dollar dipped today but ended the week higher (after two down weeks)…

Source: Bloomberg

Big week for cryptos with Litecoin and Bitcoin Cash leading…

Source: Bloomberg

Bitcoin surged after Soleimani’s death, testing up towards $8500 before fading back a little…

Source: Bloomberg

Oil was the week’s biggest loser as copper and PMs clung to the green…

Source: Bloomberg

Gold ended the week above the Soleimani-dead levels…

WTI Crude dropped over 6% on the week – its worst week since July 2019…

Finally, we have seen this kind of liquidity-fueled decoupling before…

Source: Bloomberg

And The Fed just let its balance sheet shrink by the most since May…

Source: Bloomberg

Is reality looming?