Bonds & Black Gold Bid As Negative Nabobs Battle New Issue Nirvanans

Another day, another astoundingly exuberant bid for an IPO as AirBnB opened with one of the biggest pops ($146 vs $68 IPO) since 2008 seemingly confirming JPMorgan’s “market nirvana” argument. But, “on the other hand” – as CNBC might say – stimulus doubts and vaccine take-up uncertainty (as well as extremes in sentiment and positioning) leave the negative nattering naybobs askance.

ABNB ended below its opening print…

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All of which provided yet another mixed picture with Small Cap stocks bid, big caps offered for sale, oil up strongly but bonds aggressively bid, gold up and bitcoin down, and Smart money not buying any of the excitement…

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Source: Bloomberg

Just remember “you are not your Robinhood brokerage balance…”

Stocks were mixed after an early buying panic at the cash open, chopping around on various headlines of “hope” for stimulus and disappointing increases in curfews and lockdowns across the states…Small Caps outperformed and Dow lagged…

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The Dow once again tested 30K and as hard as the algos tried, it tumbled to close below 30K…

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Small Caps surge today took them to their highest relative to Nasdaq 100 since June…

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Source: Bloomberg

FANG stocks were bid off the opening lows but faded after Europe closed…

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Source: Bloomberg

TSLA had another epic day after collapsing in the pre-market, it was panic-bid all day – up 10% from the opening lows…

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A lot of malarkey in Energy stocks today, ripped 4% higher at the open (3rd big opening squeeze in a row)…

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Source: Bloomberg

Tail risk protection is bid…

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Source: Bloomberg

And vol of vol (VVIX) is decoupling higher from VIX…

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Source: Bloomberg

A super strong 30Y auction helped extend the gains in bond-land today, with 30Y now down around 10bps on the week…

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Source: Bloomberg

30Y yields fell to their lowest in two weeks…

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Source: Bloomberg

The dollar was choppy around the ECB statement, but ended lower as EURUSD strengthened in seeming disappointment at Lagarde’s QE increase…

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Source: Bloomberg

Even as the dollar faded, so did Yuan…

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Source: Bloomberg

Yuan trading volume has exploded (the second-highest in data going back to 2014) as Bloomberg suggests one factor could be the looming reduction of yuan market-making banks: players will be under pressure to ramp up trading volumes to improve their year-end assessments.

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Source: Bloomberg

Bitcoin was modestly lower on the day, bouncing back again after trading below $18000…

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Source: Bloomberg

Gold managed to hold on to very small gains, after pump’n’dump-ing around the US cash equity open…

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Brent Crude traded above $50 today for the first time since March and WTI spiked above $47.50 (but slipped back below $47 after settlement)…

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Copper joined crude in the party…

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Lifting Bloomberg’s Commodity Spot Index to 6 year highs (as The ECB adds to its ‘highly successful’ QE bond purchase scheme)…

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Source: Bloomberg

Finally, this whole charade has been one massive short-squeeze – the largest in history by far…

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Source: Bloomberg