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QE Hope Sparks Big-Tech, Bitcoin, & Bullion Bid; But 'Smart' Money Is Dumping

Tyler Durden's Photo
by Tyler Durden
Thursday, Nov 05, 2020 - 04:00 PM

If everything is so awesome in a new-but-same-as-the-old gridlock'd Washington (according to stocks), why is the smart money running out of the market?

Source: Bloomberg

We have seen this pattern before and it did not end well...

Source: Bloomberg

The bottom line for the last day or two is that Fed QE will be the heroic replacement for a blue-wave tsunami of stimulus, and that is why everything was higher in price while the dollar dived...

Source: Bloomberg

We can't help but feel like this won't end well...

Nasdaq continues to lead the way (up 7% since the election) and Small Caps lagging ('only' up 3%)...

As Growth stocks are panic-bid at the open once again...

Source: Bloomberg

This has been the strongest 3-day rally for FANMAG stocks ever (FB, AMZN, NFLX, MSFT, AAPL, & GOOG), up close to 10%...

Source: Bloomberg

Treasury yields were basically unchanged on the day, but rollercoaster'd back higher after bond buying ovenright...

Source: Bloomberg

10Y Yields bounced off their 50DMA...

Source: Bloomberg

The USDollar was dumped for the second day...

Source: Bloomberg

...to its lowest since May 2018...

Source: Bloomberg

Offshore Yuan is soaring higher after Biden became the favorite to win the election...

Source: Bloomberg

As the dollar dived, cryptos gained, with Bitcoin back above $15000 for the first time since Jan 2018...

Source: Bloomberg

Gold and Bitcoin are tracking the resurgence in global negative-yielding debt volumes...

Source: Bloomberg

A weaker dollar also pumped gold higher, with futs back above $1950...

Silver soared back above $25...

Oil prices fell modestly after WTI tagged $39...

 

And finally, while the 'soft' survey data suggests everything is awesome, 'hard' data is starting to deteriorate rapidly...

Source: Bloomberg

Hope - remember - is not a strategy!

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