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Dow Gains For 6th Straight Day As 'Omicold'-Pivot Erases 30Y Bond Bid

Tyler Durden's Photo
by Tyler Durden
Wednesday, Dec 29, 2021 - 09:01 PM

Cases are soaring and deaths and hospitalizations...refuse to play along with the fearmongering tsunami narrative...

Source: Bloomberg

And so as 'omicold' continues to ravage peoples' nose-blowing tissues, stocks continue to melt-up as optimistic investors dump bonds into year-end.

The Dow managed to keep the dream alive and rallied for the 6th straight day to close at a record high. Thanks to a late-day panic-bid surge, everything ended green (except Nasdaq which lost it in the last seconds)...

...now up 2% post-Omicron (along with the S&P 500). Nasdaq has managed to get back to pre-Omicron levels while Small Caps remain down around 4%...

This is on course to be the first year since 2005 where the S&P 500 will outperform BOTH the Dow and the Nasdaq. Today was the 70th record high close this year for the S&P 500.

Small Caps were unable to get back above the 200DMA...

As rates rise, mega-cap tech has been sloping down...

Source: Bloomberg

Treasury yields were higher on the day with 30Y erasing all the post-Omicron gains. 2Ys also higher post-Omicron (more due to Powell's pivot) but the belly remains lower in yield (on policy error fears)...

Source: Bloomberg

But we note the 30Y stalled at that level and was unable to push up to 2.00%, ending the day down around 2bps from intraday highs...

Source: Bloomberg

Ugly 7Y auction today sparked weakness and pushed the 10Y back above 1.50%...

Source: Bloomberg

STIRs shifted more hawkishly once again...

Source: Bloomberg

The dollar broke down today to its weakest since before Thanksgiving...

Source: Bloomberg

Bitcoin fell below its 200DMA then hovered there...

Source: Bloomberg

December is on pace to be the worst month for BTC since May.

Basically cryptos are saying inflation is done...

Source: Bloomberg

Oil rallied after the DOE reported a decent crude draw and briefly broke above its 50DMA, before quickly reversing all those gains, before bouncing back up to the 50DMA...

Gold broke down below $1800 intraday but bounced back as the US market opened...

Finally, Santa's not done giving quite yet...

Or will 2022 mark the beginning of the end?

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