With Bonds Away, Tech Bulls Will Play

With Bonds Away, Tech Bulls Will Play

Tyler Durden

Wed, 11/11/2020 – 16:01

After recent dramatic moves, the bond market’s absence today (celebrating Veterans’ Day), prompted a reversal of the reversal in value/growth/momo/big-tech as Nasdaq soared. The cash open saw small caps puked as Nasdaq was instabid, but stocks did take turn for the worse around 1345ET on NY COVID restrictions and accelerated after the 1430ET margin call time, then rebounded in the last 15/20 mins to get The Dow and Small Caps back to unchanged…

Since the Pfizer vaccine headline, Small Caps remain the big winner and Nasdaq the loser…

As retail piled in…

In fact, the momentum gains (relative to value) pushed the pair back more in line with the (closed) bond market…

Source: Bloomberg

On a side note, TSY futs implied a modest compression in yields

Source: Bloomberg

Options market-makers were busy in Nasdaq…

Source: Bloomberg

The S&P 500 was unable to close at a record high, despite a brave try…

Look at this f**kery!!! A perfect panic-ramp to close the Russell 2000 unchanged!

It’s still a very ugly week for momentum traders…

Source: Bloomberg

FANG Stocks caught a bid today…

Source: Bloomberg

Nasdaq recovered some of its relative losses to Small Caps today…

Source: Bloomberg

Value retraced some of its gains relative growth…

Source: Bloomberg

The dollar managed modest gains on the day…

Source: Bloomberg

Bitcoin was bid, trading a tick shy of $16,000…

Source: Bloomberg

Brent Crude topped $45 and WTI spiked above $43 overnight – a 10-week high – before fading notably during the day…

Gold futures faded further today (to lowest close since July)…

Silver was lower also but bounced back better than gold (bouncing off $24 intraday once again)…

But, Gold remains well above its real-yield-implied levels still (and today’s reflation-trade unwind may have helped that a lot, despite the bond market closure)…

Source: Bloomberg

Finally, as stocks pushed up towards record highs, the Smart Money index has crashed to 2 year lows

Source: Bloomberg

And in case you were wondering, the S&P 500 has gone nowhere since the start of May during the day-session with the entire 650 points having been ‘created’ between the close and the open…

And while the ‘casedemic’ is soaring, the sciencey facty data suggests things aren’t at the media-driven panic levels quite yet…

Source: Bloomberg

Go to Source
Author: Tyler Durden

Comments