Dow Clings To 30K Amid IPOpalooza, Bonds Bid On Brexit & Bailout Busts
Tyler Durden
Fri, 12/11/2020 – 16:01
This is not a bubble…
Source: Bloomberg
This is not complacency…
Source: Bloomberg
And this is not a short squeeze…
Source: Bloomberg
And these are not the droids you’re looking for…
And in case you had any questions about whether this market is a little over its skis, just listen to he who knows best…
“…it’s not as though there is speculation in this market, that is not the case” – David Faber, CNBC 12/11/2020
Trade Accordingly.
Stocks were broadly lower on the week (with only Small Caps managing gains on the week)…
The Dow benefited from an epic meltup in DIS (which added 150 points to the index today)
Source: Bloomberg
Here’s The Dow this week…pinging around like a penny stock desperate to close above 30k (remember yesterday’s close was 29,999)…
From my Instagram technical analysis account, here’s an intraday 1-minute Dow 30 chart pic.twitter.com/GktjHkfrF2
— Rudy Havenstein, Winner, MTV VIDEO MUSIC AWARDS. (@RudyHavenstein) December 11, 2020
Energy stocks outperformed on the week amid total chaotic swings. Tech and Financials lagged on the week…
Source: Bloomberg
VIX was higher on the week, decoupling from stocks…
Source: Bloomberg
Bonds were bid all week with the long-end outperforming…
Source: Bloomberg
30Y yields are coiling…
Source: Bloomberg
And 2Y Yields plunged back near record lows…
Source: Bloomberg
Real Yields fell notably this week (suggesting more upside for gold)…
Source: Bloomberg
The Dollar ended the week higher amid utterly farcical swings intraday
Source: Bloomberg
Cable had a roller coaster week too amid Brexit headlines…
Source: Bloomberg
Bitcoin ended the week back below $18,000 as the crypto market broadly rolled over this week…
Source: Bloomberg
Commodities ended the week mixed with silver down 1%, crude up around 1% and copper and gold unch (despite some big intraweek swings)…
Source: Bloomberg
Either copper’s too high, gold’s too low, or yields need to go way higher…pick your poison
Source: Bloomberg
And finally, circling back to the start… this is not a bubble and this market is not expensive…
Source: Bloomberg
The big boys ain’t playing along…
Source: Bloomberg
Even the ‘soft’ survey data is starting to give up hope…
Source: Bloomberg
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