Stimulus Stalemate Sparks Slump In Stocks, Bonds, Oil, & The Dollar

Day after day the algos excited pumped and dumped stocks on the back of 'hope' and 'nope' headlines about the next round of COVID-19 relief from Washington. By the end of the week, stocks were down, bond (prices) were down, oil was down, the dollar was down, and economic data was down...

Source: Bloomberg

But all stocks care about is their next "feed" of free money...

Source: Bloomberg

But apart from that everything is awesome...

Small Caps and Trannies managed gains on the week, Nasdaq underperformed...

Big round-trip in VIX this week but remained higher on the week...

FANG stocks fell for the second week in a row...

Source: Bloomberg

And semis chipwrecked for a second week...

Source: Bloomberg

Interestingly, defensives and cyclicals tracked each other all week as everything was top-down stimulus-on/stimulus-off swings...

Source: Bloomberg

Significant weakness in momo stocks this week...

Source: Bloomberg

"Most Shorted" stocks were squeezed Thursday and Friday back to unch on the week...

Source: Bloomberg

In fact, as yields rose on the week (rallying back lower somewhat today)...

Source: Bloomberg

Pushing yields to their highest since early June...

Source: Bloomberg

The curve rose to its steepest since July 2017...

Source: Bloomberg

Real Yields rose notably on the week but as the chart shows, gold decoupled...

Source: Bloomberg

The dollar extended its decline (down for the 3rd week in the last 4)...

Source: Bloomberg

On the bright side, BANKS were bid as the yield curve steepened...

Source: Bloomberg

And BITCOIN soared back above $13,000...

Source: Bloomberg

Gold futures ended the week very slightly higher, managing to hold above $1900...

Oil prices tumbled on the week, with WTI futs closing below $40...

 

Finally, this is what the 'experts' are panicking about?!!

Source: Bloomberg

And if some more context for this terrifying killer pandemic is also required...