COVID 'Cure' Creates Chaos: Tech Wrecks, Bonds Bloodbath, Momo Massacred

Monetary stimulus, election certainty, and now a vaccine - Buy, Mortimer, Buy!!!! Small Caps were limit up in the pre-market as everything exploded on Pfizer's headlines... Nasdaq ended red, with markets tumbling late on as Trump challenge concerns picked up...

That was an all-time record high for the Russell 2000, Dow, and S&P 500.

Dow Futures perfectly tagged 30,000 at their highs today...

The plunge from early highs was extreme - the biggest intraday drawdown for Russell 2000 since the post-Fed plunge on June 11...

Source: Bloomberg

Reuters reported that a spokesman for one exchange said "unprecedented" trading volumes in the 30 minutes after the Pfizer announcement were up to 10 times the level seen earlier in the day and broke a previous record set in March when markets recorded sharp falls at the peak of virus-related restrictions.

But it wasn't all shits and giggles.

Momentum collapsed...

Source: Bloomberg

...suffering its biggest one-day drop in history...

Source: Bloomberg

All those momentum traders might be sounding a little ungrateful at Pfizer's "cure" for the COVID plague...

A massive reversal in the Small Caps/Nasdaq RV trade...

Pfizer had a big day, but could not hold its best gains...

The COVID Fear trade crashed to its lowest since early March..

Source: Bloomberg

FANG Stocks were also whacked as the 'stay-at-home' trade unwound...

Source: Bloomberg

Relative to the average stock (represented by the S&P 500 equal-weighted index), FANG Stocks had their worst day since inception in 2015 (in other words, since people have used the acronym)...

Source: Bloomberg

Banks soared (on higher rates)...

Source: Bloomberg

Airlines (and cruise lines) all exploded higher...

Source: Bloomberg

VIX crashed to a 22 handle (its lowest since August) before rallying back to close green as Trump challenges hit...

Bonds were a bloodbath today with the long-end spiking over 13bps and the curve steepening dramatically...

Source: Bloomberg

However, note where yields stalled for the day and rolled over... right at the peak of election night, running those stops and unable to push through...

Source: Bloomberg

The yield curve (2s30s) pushed to its steepest since May 2017

Source: Bloomberg

Fed rate expectations rose (hawkishly) on the day...

Source: Bloomberg

Despite soaring Treasury rates, US Junk debt yields collapsed by a stunning 45bps today to a new record low...

Source: Bloomberg

As rate-hike expectations lifted, the dollar strengthened...

Source: Bloomberg

Cryptos were mixed with Bitcoin dumped and pumped (finding support around $15,000)...

Source: Bloomberg

Oil soared over 8% on the day, pushing WTI back above $41 intraday...

Interestingly, copper ended unch...

Gold was clubbed like a baby seal, back below $1900 to its lowest since September...

Silver futures tumbled back below $24 intraday before finding support...

 

Finally, we wonder what happens next as the S&P 500 has tagged its megaphone high trendline...

Source: Bloomberg