Lockdown Loquaciousness Launches Licentious Liquidations

It seems all the talk about lockdowns has finally triggered more than a few snowflakes as today’s price action had the feel of widespread liquidation with stocks, bonds, commodities, and crypto all being dumped as safe-haven flows sent the dollar soaring…

Statistically, today is the best day of the year for the S&P 500 (which is somewhat offset by the fact that historically, tomorrow is the date when the Great Depression started in 1929), but today was ugly with all the major US equity indices down 3-4% (Nasdaq was the laggard, worst day since Sept 8th – Nasdaq down 9 of last 12 days)…

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Stoxx 600 fell to its lowest since May, plunging over 3% today. Merkel’s decision to reinstate lockdowns sparked the worst day for DAX since March…

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Source: Bloomberg

Today’s plunge erased all of October’s gains for the S&P, Dow, and Nasdaq (Small Caps remain green)…

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The Dow is back at early August lows, crashing almost 1000 points today…Double-Top Much?

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So what happens next?

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Source: Bloomberg

Bonds are signaling the same…

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Source: Bloomberg

All the major US equity indices broke below key technical levels (50-day moving-average) and the S&P broke below its 100DMA

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The opening puke was on the back of the 4th biggest sell-program this year…

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Source: Bloomberg

Value continues to be dumped in favor of momentum (growth stocks were also liquidated today)…

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Source: Bloomberg

FANG stocks slumped today…

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Source: Bloomberg

VIX and stocks remain notably decoupled…

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Source: Bloomberg

VIX surged above 40, its highest since June…

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The VIX term structure surged even more into backwardation after its brief contango around the election…

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Source: Bloomberg

Implied Correlation surged once again, flashing a very red flag that traders are preparing for an imminent systemic event…

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Source: Bloomberg

Today was ‘different’ as from the open of the cash equity market, bonds and stocks were both sold…

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Source: Bloomberg

Which reflexively sparked ugliness in risk-parity-land…

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Source: Bloomberg

Bonds & Stocks combined had their worst day since June today…

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Source: Bloomberg

Yields were all marginally higher on the day (despite the equity weakness) with the long-end marginally worse than the short-end…

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Source: Bloomberg

10Y Yield bounced of 75bps at the US equity cash open…

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Source: Bloomberg

Real yields rose notably on the day, weighing on gold…

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Source: Bloomberg

And all this liquidation sent the USDollar higher…

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Source: Bloomberg

Cryptos were mixed with Bitcoin and Ethereum lower and Bitcoin Cash bid…

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Source: Bloomberg

Bitcoin was also liquidated, back below $13000, but bounced back above it in the afternoon…

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Source: Bloomberg

The dollar gains (and liquidations) sent commodities reeling with oil crashing (not helped by inventory and demand fears), pushing WTI below $40 (actually briefly trading with a $36 handle)…

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Gold clubbed like a baby seal back below $1900…

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And silver slammed back under $24…

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And finally, the odds of a ‘blue-wave’ continue to slide…

 

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Source: Bloomberg

And the “PCR casedemic” continues to rage but the “deaths”… not so much!

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Source: Bloomberg

Probably nothing…

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Source: Bloomberg