Stimulus Stalemate & SAP Slam Stocks, Hopes Crushed On COVID Chaos, Cresting ‘Blue Wave’

So this happened (in the US)…

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Worst day for stocks since June.

After this happened (in Europe)…DAX at 4-mo lows…

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Source: Bloomberg

After a triple whammy hit of Software as a safe-haven being slammed; COVID fears being restoked; and election uncertainty picking up:

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SAP warned, stealing some hope for that sector as a safe-haven during COVID chaos, and the stocks crashed by the most ever…

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Source: Bloomberg

And that is just as COVID chaos is accelerating (in the mainstream media narrative) with Scott Gottlieb calling it a “tipping point” and WH CoS Mark Meadows admitting we’re “not going to contain the virus.” Of course, this is being stoked by the media to hype just how bad Trump is ahead of the election…

President Trump’s claim that increased testing is leading to the rise in US COVID-19 cases is unsubstantiated, according to journalists and fact-checkers. https://t.co/uP2OCUfco0

— Twitter Moments (@TwitterMoments) October 26, 2020

But, as David Stockman noted, here’s a curve that’s flattened – the percent of all US deaths with COVID…

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And hospitalizations are rising because non-COVID procedures that were delayed over the summer are finally getting their ops done, COVID-related hospitalizations remain low.

Additionally, reality is starting to dawn on more than a few market participants that Blue Wave odds are fading amid the exposure of Biden’s corruption.

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Source: Bloomberg

So don’t panic?

US equity markets broke critical technical levels (50DMA)…

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NOTE that at the cash open, algos went wild and ramped Nasdaq higher while dumping Russell 2000 but that idiocy was all unwound by the close…

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Airline stocks were slammed…

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Source: Bloomberg

Casino stocks also tumbled…

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Source: Bloomberg

And Biden bellwether TAN also dropped…

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FANG Stocks erased last week’s bounce…

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Source: Bloomberg

So much for algos attempt to diverge growth and value for some rotation momentum…

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Source: Bloomberg

But momo spiked as value was crushed…

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Source: Bloomberg

“Most Shorted” stocks were slammed by the most in a month…

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Source: Bloomberg

VIX spiked dramatically, back to 33…

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Source: Bloomberg

…signaling further downside to stocks…

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Source: Bloomberg

VVIX also jumped to its highest since early September’s slump…

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Source: Bloomberg

And Put-Call ratios hit 5-month highs…

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Source: Bloomberg

 

 

Source: Bloomberg

With 10Y Yield back below 80bps… so much for that “bond rout”…

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Source: Bloomberg

The Dollar rallied on the day, erasing Friday’s flub…

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Source: Bloomberg

Cryptos all weakened today as stocks rolled over…

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Source: Bloomberg

Bitcoin dropped back below $13,000 (but was trying to get back)…

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Source: Bloomberg

Oil tumbled, extending its drop below $40…

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Gold was flat on the day holding above $1900, Silver lower, back below $25…

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Finally, there’s this… a record daily average rise in COVID cases (PANIC!!), but not a record rise in deaths (don’t PANIC!!)…

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Source: Bloomberg

And hospitalizations FOR COVID are low and not rising!!!!

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Source: Bloomberg