Gold Gains As Dollar, Commodities, Crypto, & Stocks Slump

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The US cash open sparked a buying panic in stocks (after Nasdaq had given up all its overnight gains accelerating lower after the dismal housing data) and then again as 1430ET (margin call time) loomed, the broad market took a big hit. The ubiquitous dip was bought (back up to unch for Nasdaq and Small Caps) but then with about 10 mins to the close, everything fell apart…

Two relatively large sell programs hit…

Source: Bloomberg

VIX jerked back above 21 on that final puke…

Nasdaq tested up to its 100DMA this morning but failed…

Healthcare and Utes managed gains on the day with Energy and Industrials hit hardest…

Source: Bloomberg

AT&T has been monkeyhammered back to reality

While the EV SPAC boom is busted…

Source: Bloomberg

That didn’t stop China EV Retailer Jiuzi debuts 800% above IPO price on Nasdaq

Inflation expectations implied by caps/floors

Source

In fact, the forward inflation curve implies CPI above 2% for years to come (and above 3% for at least the next 3 years)…

Source: Bloomberg

Despite a modest puke across the US open after dismal Housing Starts data, Treasuries ended very modestly bid overall on the day (belly outperformed by 1-2bps vs wings unch)

Source: Bloomberg

The dollar tumbled to its lowest close since January 6th (barely above it) and is back in the red for 2021…

Source: Bloomberg

Pushing very close to critical support…

Source: Bloomberg

Cryptos staged an early rebound but ended back towards the lows with Bitcoin testing down below $43k once again…

Source: Bloomberg

Ether was also lower on the day but outperformed Bitcoin…

Source: Bloomberg

WTI was clubbed like a baby seal today on Iran nuke deal headlines (which were quickly walked back). WTI fell close to a $63 handle (and we noted Brent broke above $70 before its plunge) ahead of tonight’s API inventory data…

Gold managed to hold on to gains for the day…

As bitcoin and the dollar sink, there has been a renaissance in the barbarous relic…

Which clobbered commodities intraday…

Source: Bloomberg

Finally, today’s horrible housing data sent US Macro Surprise data to its lowest since June 2020…

Source: Bloomberg

And, with markets awash in liquidity, plenty on Wall Street see bubble risks growing across systemically important assets, including dollar-denominated high-yield credit. Debt spreads have tightened this year to levels not seen seen 2007.

Source: Bloomberg

Kathy Jones of Charles Schwab & Co. is telling clients to beware the “nuttiness” in corporate junk bonds.



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