Re-Open Rally Routed
As one newly-minted "expert" in trading expressed to us: "it's a f**king rout! ... and this after the most dovish Fed statement ever!"
Today saw the heaviest selling-pressure in stocks since record began as TICK collapsed to -2058 intraday
Source: Bloomberg
Cramer called it...
The Dow crashed to its Fibonacci 61.8% retracement level and closed below the uptrend line...
Too much transparency from Powell (on the economic shitshow) perhaps, COVID-19 second-wave concerns maybe, or just too far, too fast, and quant models reversing (more likely), but one thing is sure... Robinhood'rs were routed amid a big-tech bloodbath but Small Caps were the worst - down 10% this week!...
This is the biggest daily drop in stocks since mid-March at the height of the collapse.
And this collapse comes as the market has abandoned hedges...
Source: Bloomberg
The median price of US stocks is down 12.5% in the last few days...
Source: Bloomberg
Since The Fed statement and Powell presser, bonds & bullion are bid as stocks sink...
From the moment Jay Powell began his press conference, things "escalated very quickly"...
For many freshly minted day-traders, this is inconceivable... but to veterans, we've seen this malarkey before...
Looks like those rampant "Re-Open Rally" runs into value were entirely wrong...
Source: Bloomberg
Virus-impacted sectors are reversing all their insane gains...
Source: Bloomberg
Boeing, Boeing, Gone!
The overnight session remains a big winner but June has seen day session and overnight session syncing up...
Small Caps tumbled back to their 100DMA...
S&P dumped back to its 200DMA...
Dow dumped back to its 100DMA...
The S&P 500 appears to have tagged unchanged on the year (3230.78) and given up...
Banks bloodbath'd further today...
Source: Bloomberg
...extending the reversal from the perfect tag of the 200DAM...
Source: Bloomberg
VIX soared back above 35 today (not call-buying this time) as its curve inverted once again for the first time since April....
Source: Bloomberg
Bitcoin was also battered today (after tagging $10k yesterday)...
Source: Bloomberg
But, on the positive side, bonds were bid...
Source: Bloomberg
As the coiling yield dismisses the false upside breakout of the reopen rally...
Source: Bloomberg
Treasuries have erased all their losses for June with the long-end yields actually now lower this month...
Source: Bloomberg
Despite everyone's excitement about The Fed's apparent HY backstop, it led the drop...
Source: Bloomberg
And precious metals surged (though we did see some liquidation that was reminiscent of the 'sell everything' trend we saw in March)...
Source: Bloomberg
As black gold was battered (WTI was down over 10% at its worst, back to a $35 handle, but bounced)...
Source: Bloomberg
The dollar screamed higher today (biggest jump in 3 months), bucking its recent trend dramatically...
Source: Bloomberg
Notice where the dollar bounced...
Source: Bloomberg
Finally, is it catch-down time?
Source: Bloomberg
Robinhood'rs favorite stock routed...
And yesterday's big winner...
"These are the days I live for... it was too easy"...
You wanna get nuts? Let’s get FUCKING NUTS. How low can we go? Do the suits think I’m gonna flinch? #DDTG pic.twitter.com/3vsBWvMpCO
— Dave Portnoy (@stoolpresidente) June 11, 2020
And one wonders if this is the real reason why stocks suddenly puked the last two days...
Source: Bloomberg