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Crypto Pops, Dollar Drops, Bonds & Stocks Chop

Tyler Durden's Photo
by Tyler Durden
Monday, Jul 26, 2021 - 04:00 PM

Before we get started on today's market malarkey, we would like to spend a moment of reflection - today is the 9th anniversary of Draghi's infamous "whatever it takes" moment...

It appears to have worked... for stonk markets at least...

Source: Bloomberg

Since that date, bitcoin is up 454,000%!

Source: Bloomberg

Cryptos grabbed all the headlines today as bitcoin surge over the weekend...

Source: Bloomberg

Bitcoin pushed past its 50DMA and tested above $40k toward the end of the US equity day session (even with Tether headlines)...

Source: Bloomberg

What happens next? Raoul Pal has some ideas...

Ethereum also soared, getting within a tick of $2400...

Source: Bloomberg

As crypto gained, the dollar slipped lower on the day, hitting one week lows...

Source: Bloomberg

Chinese tech stocks were a bloodbath again as Beijing's crackdown deepens...

Source: Bloomberg

And while US Small Caps did their usual chaotic thing at the cash open, by the close US equities had eked a very modest gain with a small positive drift all day...

Energy stocks outperformed dramatically as Healthcare and Utes lagged...

Source: Bloomberg

After Friday's op-ex, VIX opened above 19 this morning but drifted lower all day to end below 18 (but that is still above Friday's close)...

But we do note that all major asset's realized vols remain below average...

Treasuries ended the day practically unch after some overnight bid was erased. The long-end very modestly underperformed. As the chart shows, Asia was buying, Europe was selling, and US did nothing...

Source: Bloomberg

The 10Y tested down to 1.22% but ended unch...

Source: Bloomberg

Real yields crashed a new record (negative) low today...

Source: Bloomberg

The last time real yields were here, gold was trading above $2000, but the precious metal struggled to break away from $1800 today...

While energy stocks soared, WTI ended unchanged after a rollercoaster of a day...

Finally, Bloomberg notes that few times in recent history history has the mood of U.S. technology investors been so bright heading into a crucial earnings week. Beneath the surface, however, there’s a level of anxiety rarely seen. Hedge funds have been net short Nasdaq 100 Index futures for 22 consecutive weeks, according to recent data from the Commodity Futures Trading Commission.

Source: Bloomberg

The only time that streak was exceeded was during the 2008 financial crisis, when the cohort was short tech for 41 weeks.

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