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Bitcoin & Big-Tech Erase Omicron Fears; Bonds, Black Gold, & The Buck Less Sure

Tyler Durden's Photo
by Tyler Durden
Monday, Nov 29, 2021 - 04:03 PM

A new monster variant... or "mild, moderate, meh" - well if you listen to Fauci it is too early to tell (so panic!), if you listen to actual scientists in South Africa its a nothingburger...

The markets were just as uncertain with big-tech stocks and cryptos seemingly reassured while bonds, the dollar, oil, and 'recovery' stocks anything but confident that Biden will keep his promise of "no new lockdowns"...

In equity land, Nasdaq saw the biggest gains on the day from the 1300ET early close on Friday. The Dow ended below its cash open level on the day, managing only modest gains as Small Caps went red twice during the day session...

Nasdaq was the only major index to erase all of the Omicron losses (but unable to extend beyond that)...

Rather interestingly, 'recovery' stocks did not 'recover' relative to the carnage from last week...

Source: Bloomberg

TWTR shares had a wild ride today after spiking in news that Dorsey was leaving and then fading as the new CEO's history of activism confirmed nothing would change...

Vaccine makers were mixed today despite constant media attention on various pills and jabs and promises (they were all spooked a bit late on by new sthat another Federal judge had blocked Biden's vax mandate)...

Source: Bloomberg

Bitcoin exploded higher overnight and extended gains during the day on Biden's 'no lockdowns' comments, erasing all the Omicron losses...

Source: Bloomberg

The dollar bounced in the European session but was sold during the US session to end barely higher after Friday's purge...

Source: Bloomberg

Bond yields were higher on the day but as the US day session started, Treasuries were bid and ended far closer to Friday's low yields than its highs (the curve steepened on the day 2Y +2bps, 30Y +5bps)...

Source: Bloomberg

Perhaps most notable was the failed rebound in crude oil as WTI bounced up to $73 after one of the biggest daily drops in history on Friday, only to fade fast into the close back to a $68 handle...

Gold managed gains overnight, but after tagging $1800 once again, selling pressure pushed it back down...

Finally, STIRs did not jump on the "all-clear" bandwagon, extending Friday's dovish retracement implying a later take-off for The Fed...

Source: Bloomberg

So who you gonna believe? Nasdaq momo or oil, short-term rates, bonds, and the dollar? Either way, we know what the solution is...

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