Small Caps Slayed As Yields, Crypto, & The Dollar Soar
Bitcoin came within a few bucks of the $90,000 Maginot Line today - up a stunning 30% since right before the election results started to pour in...
Source: Bloomberg
Winter is over?
Source: Bloomberg
Massive inflows into BTC and ETH ETFs over the last week have helped...
Source: Bloomberg
...and so has the sudden resurgence in global liquidity...
Source: Bloomberg
Ethereum was actually lower on the day today after topping $3400 intraday
Source: Bloomberg
...as the post-election DeFi mania wears off...
Source: Bloomberg
The dollar was another huuuge winner today... up over 5% in the last seven weeks to two-year highs...
Source: Bloomberg
The dollar strength has started to hammer gold - which is now down at near two-month lows...
Source: Bloomberg
The gold-dollar correlation regime has normalized after both surging together for a few months...
Source: Bloomberg
Yields surged today, playing catch up after yesterday's holiday (the long-end was a slight laggard with 10Y +13bps, 2Y +9bps). Yields are now back up near the post-election spike highs...
Source: Bloomberg
10Y Yields are back at their highest in five-months...
Source: Bloomberg
Small Caps were really ugly today (-1.8%) while The Dow ended on the lows of the day...
...as the 'short squeeze' finally stalled (worst day for 'most shorted' stocks since Sept 3rd)...
Source: Bloomberg
...and yields start to hurt from the bottom up (small-caps, then mid-caps) after the bigly squeeze from the election...
Source: Bloomberg
Bond vol is starting to pick up a little...
Source: Bloomberg
But the post-election vol collapse has stalled...
Source: Bloomberg
Crude oil prices were flat today with WTI holding around $68, still notably down from the election...
Source: Bloomberg
Finally, investors want equities: SPY has witnessed 9 consecutive days of inflows (totaling to ~$18bn over the period)...
Source: Goldman Sachs
As Goldman Sachs trader John Flood notes, the longest streak of inflows SPY has seen is 10 days, which was last witnessed in 2014.
