COVID ‘Cure’ Creates Chaos: Tech Wrecks, Bonds Bloodbath, Momo Massacred

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

love 173 Love
wink 425 Wink
lol 103 LoL
wow 78 Wow
cry 0 Cry
angry 0 Angry
Previous Post
Next Post
1767 Shares