A combination of various state/city lockdown orders (on the back of Biden advisors pushing for a national lockdown for up to 6 weeks) and headlines from Washington that stimulus will be dramatically smaller than hoped for (if at all), sent all the major US equity indices lower today. Small Caps were hit hardest but as the headlines hit, even Big-Tech couldn’t hold any gains (after Trump admin unveils EO blocking some China stock buys)…
NOTE – the same last-minute panic-buying as yesterday.
The S&P is back in the red post-vaccine and Small Caps are rapidly giving up their exuberant gains…
Additionally, after taking the day off yesterday to remember Veterans, bond traders were in buoyant mode, buying Treasuries across the curve (even after a weak 30Y auction) as Fed’s Powell hinted at more action required (and fiscal stimulus ‘reflationary’ hopes faded)…
Source: Bloomberg
Clearly the Biden administration is going full Judge Dredd with its plans for “crushing” COVID…
And as bond yields tumbled, so did banks…
Source: Bloomberg
Momentum managed decent gains versus value today (but is still having a record-bad week)…
Source: Bloomberg
And has more to go if rates are to be believed…
Source: Bloomberg
Cyclicals and Defensives both tumbled…
Source: Bloomberg
The S&P rejected its high close once again…
Source: Bloomberg
VIX topped 27 today, spiking back above Tuesday’s highs…
Smart Money continues to diverge from equity exuberance…
Source: Bloomberg
Overall, bonds are erasing their losses from the Pfizer vaccine news…
Source: Bloomberg
The Dollar was marginally higher, basically treading water again (still well below election night highs)…
Source: Bloomberg
Bitcoin rallied back above $16,000 as PayPal went live with its crypto trading platform…
Source: Bloomberg
Oil prices slipped lower after an unexpected crude build…
Gold rallied (despite a slightly stronger dollar)…
Silver managed a modest gain…
Finally, while the casedemic continues to drive panic and lockdowns, the official CDC data (green) shows hospitalizations (lagged by a week) remain manageable,
Source: Bloomberg
Did the Nasdaq just ‘peak’ against the Dow?
Source: Bloomberg
US Macro data has been serially disappointing since mid-July and is now at its lowest since mid June…
Source: Bloomberg
