Dow Drops As Dollar, Bond Yields Spike Most Since Election

Tyler Durden's picture

For Goldman bulls today...

 

The Dollar Index surged higher today rebounding from its biggest drop since July with its biggest spike since the election today following Trump/Ross comments on NAFTA and extended by Yellen's comments late on regharding rate hikes... (and we suspect with Xi leaving Davos, China currency strength was unwound)

 

The Dow dropped... (The Dow is down 4 shocking days in a row - the longest losing streak since the election)

 

As not even Goldman Sachs could rescue bank stocks... (the last two days were the worst for Goldman since Brexit)

 

And Bond yields spiked most since the election...(30Y perfectly tagging 3.00%)

 

*  *  *

While The Dow ended red, Trannies and Small Caps were panic-bid into the close as USDJPY went bananas...

 

On the week however, all major US indices remain red...

 

VIX spiked to 2-week highs at the open but was quickly slammed lower...

 

The entire curve is now higher in yield on the week (led by the belly underperforming)...

 

The Dollar Index rallied back into the green for the week (led by a collapse in the loonie)...

 

As the dollar soared so NAFTA partners currencies plunged...

 

And it makes one wonder if Yuan strength yesterday was all about face-saving for Xi...

 

Gold broke its 7 day winning streak and dropped most in over a month...

 

Crude also tumbled to a $51 handle (ahead of tonight's API data)

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
shizzledizzle's picture

Two volume spikes in the dow @ 10:40 and 11:14 and I speculate it wasn't yellen and co... Looks like someone quietly cashed in their chips and left the casino.

The_Juggernaut's picture

There's trillions of dollars sitting on the sidelines.  It won't stay there forever.

GGuy's picture

I predict Trump's first week will be a doozy for the Dow....

 

LET THE BLAME BEGIN!!!!!!

 

P.S., "it happened during his watch"!   Recall that NAZI j00 media canard? Trump is a white, Christian heterosexual, so it's time to ressurect that std. of blame assignment!

King Tut's picture

Everybody is waiting to BTFATH

SILVERGEDDON's picture

Stawks look like a tank farm with no oil in it. 

Not worth so much.

More muppets getting sheared.

Your 401 K plan don't look so fucking smart investment wise now, does it ? 

joego1's picture

U.S. Dollar VS Gold- The perfect hedge pair

NDXTrader's picture

So....who knew what Yellen was going to say today? The dollar was frontrun like crazy by some insiders. Interesting little game the algos have had going on for years - hawkish comments means USD/JPY moves up = market moves up, dovish comments means oil moves up = market moves up. It's like a teeter-totter. You can't lose /s

Vlad the Inhaler's picture

The dollar could easily run up to around $102, which could mean bull trap for gold and bond longs.

AlexCharting's picture

Trump wants to go full currency manipulator and devalue the dollar. 

NugginFuts's picture

May it ever be so! And who else finds irony in his accusing China of being a currency manipulator and then simultaneously telling everyone "The dollar is too damn strong! We need to weaken it!"

Vlad the Inhaler's picture

He may want to, but all of his proposals effectively do the opposite and point to a USD shortage, and then there's the bond market vigilantes...

NugginFuts's picture

He could reverse any of those proposals in 140 characters before breakfast. That's his trade mark. His best trick yet is getting you to think he's going to do one thing when he's just about to do another. 

Exhibit A: Trump paints GS as a villain who controls and manipulates Clinton and Cruz. Then staffs his team with those exact same villains.

Exhibit B: Trump says the Clinton Foundation is an awful pay to play.... after giving them over $100k to play. 

kiwigal's picture

As interest rates climb the U.S. dollar with obviously rise.  A sweet deal. Personally think his policies are great, more important to have a productive working population making their own goods. Of course that will raise inflation but they have been bitching  about low inflation for years. Trump deserves a chance, he must have great strength of character to be able to deal with the liberal forces trying to destroy him.

Kaiser Sousa's picture

nice slow grind off the lows again today on the Dow Jones Propaganda Index... nothing says continuing "recovery" like a Fraud Market led by the likes of a peddler of debt like American Express which of course Ameridumbs who r swimming in "wealth' cant even qualify for...

total bullshit...

and how bout that little hit job on Gold & Silver phony paper prices carried out of course only in the EuroPeon capitol and Wall St. den of fraud and manipulation...

DEATH TO THE MONEYCHANGERS.

pump and dump's picture

I went to cash myself that way I will be ready for whatever happens.

Moe Howard's picture

Except the elimination of cash.

buzzsaw99's picture

obviously the squid's earnings were released to certain parties weeks in advance.

TheRideNeverEnds's picture

Wow, the DOW is a solid 200 points off all time highs, so THIS is what a crash looks like!

misterbulldops's picture

I thought Obama pardoned the Trannies that's why they rallied.

Red Wire's picture

I'm getting ready to overweight short positions S&P500 @2282-2300 for a Target of 2200 FEB 10

https://www.youtube.com/watch?v=tMOvSjT4IyM

Traderone's picture

What is your hard Stop on this trade?

any_mouse's picture

Dow Drops, Dollar Spikes.

Dow priced in Dollars. Nothing really changed.

In other news, the sun rose in the East this AM, moved westward throughout the trading day.