Fed Fumble Slams Stocks, Bond Yields, & Big Shorts

A double whammy of potential pain from The Fed’s Powell (admitting they’re talking about tapering) and Evans (disappointed there’s not more inflation) provided just enough uncertainty to spook all asset classes today. The Philly Fed survey, initial jobless claims, and Industrial Production also disappointed today.

Nasdaq underperformed for a change today early on, but as yields plunged in the afternoon, Small Caps were monkeyhammered. But everything bounce back after 2pmET. The Dow managed to scramble back into the green in the last hour of the day. This was still Nasdaq’s worst day since early June…

As it appears maybe the growth/value rotation has reached a short-term limit for now…

Source: Bloomberg

The most-shorted-stocks were slammed once again today…

Source: Bloomberg

Bank stocks seesawed today amid more earnings and the plunge in yields…

Source: Bloomberg

Bond yields plunged late in the day after Fed’s Evans’ comments on inflation…

Source: Bloomberg

10Y Yields fell back below 1.30%…

Source: Bloomberg

The yield curve flattened dramatically…

Source: Bloomberg

Real yields continued to plunge (10Y Real yields below -1.00% again, lowest since Feb) suggesting gold has room to run here…

Source: Bloomberg

The dollar rebounded today back towards the top of its recent range…

Source: Bloomberg

Bitcoin took another leg lower, not helped by Jeff Gundlach saying “he would not own crypto personally”…

Source: Bloomberg

Ethereum fell on the day but found support at $1900…

Source: Bloomberg

Gold managed modest gains again…

Another ugly one for crude today with WTI back below $72 amid OPEC+ production concerns…

Finally, in “things that make you laugh”, Junk bond yields tumbled below CPI for the first time in history…

Source: Bloomberg

Who’s (the bagholder) buying?