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Stocks Pump'n'Dump, Bitcoin Jumps As US Macro Slumps

Tyler Durden's Photo
by Tyler Durden
Thursday, Jan 20, 2022 - 09:01 PM

China cut rates overnight, US jobless claims spiked, Existing home sales plunged, Peloton puked, and geopolitical malarkey remains at '11'... so it really shouldn't be a surprise that stocks and bond yields were lower on the day (but having been conditioned to BTFD for the last 12 years, US equity market investors got another slap back to reality today).

Futures rallied hard on the ugly jobless claims data as algos lifted them to yesterday's late-day high stops and tomorrow's gamma-heavy Op-Ex provided the ammunition, but its all went pear-shaped with a massive puke that felt very forced. Small Caps and Nasdaq screamed up 2% at the day's highs, only to give it all back and then some in the last hour...

Small Caps are now down 6% on the week (a short week) as BTFD turns into sell-the-fucking-rips...

This the Nasdaq and Small Caps' worst start to the year since 2009.

Technically, this was very ugly with The Dow breaking closing below its 200DMA (for the first time since 12/1/21), Nasdaq closed below its 200DMA for the first time since April 2020, Russell 2000 is at its lowest since 1/5/21 (down YoY), and the S&P 500 closed below its 100DMA for the first time since 10/4/21...

For now it appears the Powell-Put is significantly lower as rate-hike expectations remain near cycle-highs...

Source: Bloomberg

Before we leave equity land, investors told Peloton to get on yr bike, dumping 25% on record volume back below its IPO price...

Source: Bloomberg

All of which can be roughly translated as...

Yields were lower across the board today with the long-end significantly outperforming (30Y -4bps, 2Y -0.1bps)...

Source: Bloomberg

That flattened the yield curve back to yesterday's lows and its lowest close since the post-Powell-Pivot/Omicron puke...

Source: Bloomberg

The dollar chopped around in a relatively narrow range today but ended higher on the back of a bid as stocks puked...

Source: Bloomberg

Bitcoin ripped higher on the ugly claims data, then faded after tagging the highs from earlier in the week...

Source: Bloomberg

Gold dipped very modestly on the day (after nearing $1850 at its highs)...

Oil prices slipped after DOE confirmed API's reports with a crude inventory build and weak gasoline demand...

Finally, we note that the recent slew of disappointing data and sentiment has driven 'hope' down to its lowest since before COVID...

Source: Bloomberg

It appears President Biden can't jawbone this one... and he is about to face soaring gas prices again too...

Source: Bloomberg

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