print-icon

Crypto, Crude, & 'Crappy' Stocks Dump'n'Pump As Fed Sparks Dollar Spike

Tyler Durden's Photo
by Tyler Durden
Wednesday, May 19, 2021 - 04:00 PM

The headlines of the day were without doubt made in cryptoland as the entire space saw $1 trillion of wealth destroyed at its nadir today...

Source

But you can't keep a good thing down...

Source: Bloomberg

...as the following two tweets explain...

But for the HODLers, this has all been seen before...

Source: Bloomberg

And as Bitcoin was clubbed like a baby seal, gold rallied (and as crypto recovered, gold reversed, helped by The Fed's taper talk)...

Source: Bloomberg

Ethereum rebounced back from below $2000, back up near its 50DMA...

Source: Bloomberg

Bitcoin bounced back off $30,000, rallying all the way back to its 200DMA...

Source: Bloomberg

Bitcoin’s 14-day RSI flashed its most oversold reading since March 2020, when prices dipped below $40,000.

Source: Bloomberg

Stocks also saw a big dump-n-pump day with Nasdaq outperforming (seemingly finding a magic bid after The Fed said it was thinking about thinking about tapering). Small Cap slagged...

The S&P 500 and Dow found some support at their 50DMA once again...

All sectors ended red with Tech the best and Energy the worst...

Source: Bloomberg

"Crappy" - non-profitable tech stocks - were also dumped at the open, only to rip back higher during the day...

Source: Bloomberg

The crypto proxy stocks also dumped and pumped...

Source: Bloomberg

VIX surged to 26 intraday...

Treasuries were sold along with stocks today for the 3rd day in a row (and 6th day of the last 8 days)...

Source: Bloomberg

10Y yields rose once again off that pre-CPI level...

Source: Bloomberg

And as Nomura noted that the abrupt reversal btwn ES and TY from “negatively correlated” for the vast majority of the post-GFC era (a rolling 60d corr low of -74.8% in Nov ’11, with the low since start of 2020 being -62.3% on 2/24/20) to now, the most “positively correlated” since 1999 (60d rolling now @ +54.1) - all thanks to last year’s pandemic response-driven macro regime shift (“From Duration to Reflation”)...

Source: Bloomberg

...has meant a frustrating bleed for risk-parity-types and 60/40 “balanced fund” models, where bonds have traditionally played the role as the perceived “low vol” / “risk-off” hedge.

Source: Bloomberg

The dollar was quietly doing its thing until The Fed's taper talk sent it vertical...

Source: Bloomberg

Gold whipsawed to end unchanged (bid on crypto chaos, offered on Fed taper talk, usd bid)...

Crude prices tumbled on a crude inventory build and more positive headlines from the JCPOA talks... but again that was bid back just like yesterday...

 

Finally, we note that, as @sentimentrader pointed out, in the past 7 sessions, stocks have suffered 3 of the largest bouts of concentrated selling pressure in history.

  • May 11: Largest all-time

  • Today: 4th-largest

  • May 12: 19th-largest

Source: Bloomberg

Makes you wonder just how nervous everyone really is.Maybe this is why...

Source: Bloomberg

We're gonna need a bigger (stimmy) boat!

0