Crypto, Gold, Oil, & Stocks Soar On Dismal Data As Dollar Dumps

EU consumer sentiment tumbled this morning (mirroring US’ sentiment collapse) and US PMIs both plunged to multi-month lows… that’s great news right? US economic surprise data plunged to -45.5 – as bad as it was in March 2020 – and global economic surprise data has been tumbling for weeks and just went negative…

Source: Bloomberg

‘Bad news is good news’ for stocks (and vol-selling flows) as Taper Tantrums are potentially delayed and stocks roared higher at the cash open and never looked back. Small Caps and Nasdaq were the most impacted by panic-buyers as vol-sellers dominated… The last few minutes some profit-taking on the day’s gamma-squeeze malarkey…

Put graphically all of that equates to this…

The last two days were the biggest short-squeeze since early June…

Source: Bloomberg

As the major indices push back to record highs, the ‘median’ US stock has been falling for three months…

Source: Bloomberg

Energy stocks soared today (after an ugly week last week) as oil prices rebounded. Utes were weakest…

Source: Bloomberg

VIX was monkeyhammered back down to a 16 handle today…

Equity markets were completely divorced from bond markets today…

Source: Bloomberg

Treasury yields ended down very marginally on the day (5Y/7Y -1bps) after being sold during the Asia session and bid during EU/US…

Source: Bloomberg

The Dollar extended Friday’s losses today with no looking back…

Source: Bloomberg

Bitcoin spiked back above $50,000 for the first time since May…

Source: Bloomberg

And Ethereum topped $3300…

Source: Bloomberg

Gold spiked back above $1800, erasing the payrolls/flash-crash loses…

Oil prices rebounded very strongly – up over 5.5% – with WTI back to $66 briefly before fading…

Finally, as we noted earlier, credit markets are flashing some serious red light about this ongoing ramp in stocks (HY credit is wider 7 straight weeks – the longest streak since 2014)…

Source: Bloomberg

“probably nothing”