European Close Sparks Buying-Panic Bid After Morning Momo Massacre

The head of the WHO says “this is no time for complacency.” Goldman warns “stocks are underestimating the effect of the virus.” Morgan Stanley warns of a “factor crash.” JPMorgan  warned “this bubble will collapse.” Headlines suggesting a major increase in virus cases in Beijing. And an increasing number of firms are cutting outlooks and pointing to uncertainty about resumption of supply chains from China.

To quote John Wick “Oh, yeah, I think China’s back…” NOT!

Source: Bloomberg

So, it’s only right that we would sell off…

[youtube https://www.youtube.com/watch?v=obAoPP1bdIM]

BRIEFLY… before dip-buyers rampaged back into the market after Europe closed to soothe the fraying nerves…

The big move in markets occurred around 11-1130ET (into the European close).

The hyper-stocks – PLUG, TSLA, SPCE for example – all collapsed only to be ramped back to vwap…

Momentum was monkey-hammered…

Source: Bloomberg

The ‘low-vol’-related factors crashed…

Source: Bloomberg

FAANG stocks all plunged symmetrically…

Source: Bloomberg

Some argued that the trigger for stocks was the 30Y Yield breaking to new 2020 lows intraday…

Source: Bloomberg

Overall, the plunge sent all major US indices into the red for the week (except Trannies) but once Europe had closed, the bid was back… Small Caps and Nasdaqa pushed back into the green on the week…

Intraday, the collapse saw the most negative TICK since August

Source: Bloomberg

Cyclicals suffered the most damage in the mid-morning dump…

Source: Bloomberg

Treasury yields all tumbled intraday with the long-end outperforming (30-5bps, 2Y -3bps)…

Source: Bloomberg

Yields are approaching record lows once again with the 30Y within 1bps of a record low close…

Source: Bloomberg

…while stocks are at record highs?

Source: Bloomberg

The yield curve tumbled to its most inverted since Oct 19th…

Source: Bloomberg

The market has started to demand more rate-cuts in 2020… to save us all…

Source: Bloomberg

The Dollar Index (DXY) for the 12th day in the last 14 to its highest since May 2017 (and the critical 100.00 level)…

Source: Bloomberg

JPY continued its collapse…the biggest 2-day crash in the yen since Sept 2017

Source: Bloomberg

Pushing JPY to near record lows against gold…

Source: Bloomberg

And the Euro is at its weakest ever against gold…

Source: Bloomberg

And Turkey’s Lira crashed back near record lows against the dollar and pushed every weaker against gold…

Source: Bloomberg

Cryptos were all down on the day after an early morning pukefest across the entire space…

Source: Bloomberg

Bitcoin puked back below $10,000… again…

Source: Bloomberg

Gold and oil were higher today with small drops for copper and silver…

Source: Bloomberg

Spot Gold topped $1620 – its highest since March 2013…

Source: Bloomberg

WTI Crude rallied back above $54 intraday – one-month highs…

Source: Bloomberg

And finally… Spot The Odd One Out!

Source: Bloomberg

Something bad better happen soon to prompt global liquidity to re-accelerate or stocks are going to be very disappointed…

Source: Bloomberg