Powell Pumps S&P To Best August Since ’86, Dollar & Bonds Puked
Tyler Durden
Fri, 08/28/2020 – 16:00
August 2020’s 6.89% surge in the major US market index is the largest August gain since 1986 (when the S&P 500 rose 7.12%), but as the chart below shows Trannies almost doubled those gains…
Source: Bloomberg
This is the S&P’s 7th straight daily gain, 5th straight weekly gain, and 5th straight monthly gain…
“Do you want to play this game?”
[youtube https://www.youtube.com/watch?v=NHWjlCaIrQo]
And that strong month sent The Dow back into the green for 2020…
Source: Bloomberg
All thanks to an epic squeeze in the most-shorted stocks (doubling the S&P’s performance)…
Source: Bloomberg
The 5th month in a row…
Source: Bloomberg
With the strength being concentrated in fewer and fewer stocks…
Source: Bloomberg
As AAPL nears the same size as the entire Russell 2000!!!!
Source: Bloomberg
VIX was lower on the day after ‘unusually’ trading higher along with a higher stock market two days in a row…
Source: Bloomberg
It was an ugly month for bonds with the long-end up over 30bps…
Source: Bloomberg
10Y Yields spiked 20bps on the month – the biggest absolute monthly spike since Sept 2018 – back above 70bps (30Y back above 1.50%)…
Source: Bloomberg
But still some context for this rate move is needed…
Source: Bloomberg
Breakevens ripped higher this month (and up 6 days in a row) to their highest since Jan 2020…
Source: Bloomberg
Real yields ended marginally lower (down from -1.00% to -1.04% on the month)…
Source: Bloomberg
The dollar was pummeled for the 5th straight month to its lowest since May 2018…
Source: Bloomberg
Cryptos were mixed with Ethereum strong (DeFi boom), Bitcoin Cash weak, and Bitcoin flat…
Source: Bloomberg
Copper and Crude had a strong month, gold ended lower, silver the big winner…
Source: Bloomberg
Gold rallied back to yesterday’s Powell-spooked highs today…
But Gold ended the month unchanged…
Source: Bloomberg
But despite a big roundtrip early on, Silver rallied notably on the month…
Source: Bloomberg
Which meant the Gold/Silver ratio cratered (for the 4th month in the last 5)…ending the month at the lowest level (silver strongest relative to gold) since April 2017…
Source: Bloomberg
And finally there’s this!
Source: Bloomberg
And this…
Source: Bloomberg
And this…
- *BULLARD: WANT TO GUARD AGAINST ASSET BUBBLES GOING FORWARD
Because it’s different this time…
Source: Bloomberg
Probably nothing!
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