Monetary stimulus, election certainty, and now a vaccine – Buy, Mortimer, Buy!!!! Small Caps were limit up in the pre-market as everything exploded on Pfizer’s headlines… Nasdaq ended red, with markets tumbling late on as Trump challenge concerns picked up…
That was an all-time record high for the Russell 2000, Dow, and S&P 500.
Dow Futures perfectly tagged 30,000 at their highs today…
The plunge from early highs was extreme – the biggest intraday drawdown for Russell 2000 since the post-Fed plunge on June 11…
Source: Bloomberg
Reuters reported that a spokesman for one exchange said “unprecedented” trading volumes in the 30 minutes after the Pfizer announcement were up to 10 times the level seen earlier in the day and broke a previous record set in March when markets recorded sharp falls at the peak of virus-related restrictions.
But it wasn’t all shits and giggles.
Momentum collapsed…
Source: Bloomberg
…suffering its biggest one-day drop in history…
Source: Bloomberg
All those momentum traders might be sounding a little ungrateful at Pfizer’s “cure” for the COVID plague…
A massive reversal in the Small Caps/Nasdaq RV trade…
Pfizer had a big day, but could not hold its best gains…
The COVID Fear trade crashed to its lowest since early March..
Source: Bloomberg
FANG Stocks were also whacked as the ‘stay-at-home’ trade unwound…
Source: Bloomberg
Relative to the average stock (represented by the S&P 500 equal-weighted index), FANG Stocks had their worst day since inception in 2015 (in other words, since people have used the acronym)…
Source: Bloomberg
Banks soared (on higher rates)…
Source: Bloomberg
Airlines (and cruise lines) all exploded higher…
Source: Bloomberg
VIX crashed to a 22 handle (its lowest since August) before rallying back to close green as Trump challenges hit…
Bonds were a bloodbath today with the long-end spiking over 13bps and the curve steepening dramatically…
Source: Bloomberg
However, note where yields stalled for the day and rolled over… right at the peak of election night, running those stops and unable to push through…
Source: Bloomberg
The yield curve (2s30s) pushed to its steepest since May 2017
Source: Bloomberg
Fed rate expectations rose (hawkishly) on the day…
Source: Bloomberg
As rate-hike expectations lifted, the dollar strengthened…
Source: Bloomberg
Cryptos were mixed with Bitcoin dumped and pumped (finding support around $15,000)…
Source: Bloomberg
Oil soared over 8% on the day, pushing WTI back above $41 intraday…
Interestingly, copper ended unch…
Gold was clubbed like a baby seal, back below $1900 to its lowest since September…
Silver futures tumbled back below $24 intraday before finding support…
Finally, we wonder what happens next as the S&P 500 has tagged its megaphone high trendline…
Source: Bloomberg
