Momentum Massacre Trounces Tech Stocks; Bonds Drop, Bullion Pops

Since the Pfizer vaccine headlines hit, markets have gone just a little bit slightly turbo with Small Caps up over 4% and Mega-Cap tech down almost 6%…

But don’t overdose on all that exuberance…

Nasdaq found support at its Zero Gamma level once again…

This is the biggest two-day surge in value over growth in history…

Source: Bloomberg

The rotation from growth to value is nowhere more evident than in Small Caps vs Mega-Tech…

This is the biggest 2 day outperformance of the Russell 2000 over the Nasdaq 100 since March 2001

Source: Bloomberg

Momentum’s collapse continues – the biggest 2-day crash in history…

Source: Bloomberg

With yet another massive reversal in the momo/value trade…

Source: Bloomberg

FANG Stocks continued their slide…

Source: Bloomberg

Credit and equity protection costs both tumbled but VIX (equity) remains notably decoupled from credit risk…

Source: Bloomberg

Treasury yields were once again higher on the day (long-end up around 5bps)…

Source: Bloomberg

30Y yields stalled once again around the same level as the election-night peak…

Source: Bloomberg

The yield curve (2s30s) steepened to its highest since May 2017…

Source: Bloomberg

But we note that, for now, yields are not following the correlation regime with value/momo that has been in place for months…

Source: Bloomberg

The dollar shrugged today, going nowhere…

Source: Bloomberg

Cryptos drifted very modestly lower today…

Source: Bloomberg

Gold futures managed gains today but was unable to reach $1900…

Silver futures managed gains…

WTI pushed back above $41 ahead of tonight’s API inventory data…

Finally, as we noted earlier, stocks are at their most expensive relative to bonds in two years…

Source: Bloomberg

TINA is dead… but not from COVID…

Source: Bloomberg

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