Just Another Manic Monday As Narrative Shifts From Stone-Age Fears To Stimmy-Watch Cheers

Tl;dr: A rollercoaster of a day again as the correlation breakdown we saw Friday continued overnight - oil up, stocks up, bonds (prices) up - as traders/strategists finally looked through short-term oil-driven inflation-fears to medium-term disruption-driven recession fears and then further discounting ahead to the likelihood of easing policies to save the world (again). But, the US equity cash open saw relations reverse with the higher oil prices weighing on stocks (not helped by massive negative gamma) as momentum's massacre continued, and bitcoin while bonds held on to their gains on hopes of stimmys down the pike (and a less hawkish tilt from Powell).

By the end of the day, it was bonds that really decoupled as stocks' early gains faded as oil pushed higher...

Oil