Trump's trade-deal-related comments, combined with Pence and Ross confirmations that Dec 15th tariffs are still on the table unless a deal is struck imminently, sent the market's expectations for a trade deal tumbling....
Source: Bloomberg
Sparking the worst start to December since 2008...
Source: Bloomberg
As US equities caught down to bond-land's all-knowing levels...
Source: Bloomberg
Dow Transports are suffering most since the start of December (and Small Caps are relative outperformers, but still down hard)...
Source: Bloomberg
Trannies briefly broke below their 200DMA...
Notably, today's bounce took the S&P futs back to VWAP (and tried to get back to the critical 3100 gamma level, after bouncing off the 3070/75 gamma-flip level)...
Source: Bloomberg
Cyclicals were monkeyhammered today...
Source: Bloomberg
European markets slid as Trump raises the threat of tariffs of EU exports...
Source: Bloomberg
VIX spiked to 17.99 intraday before fading back (and the short-end term structure inverted briefly intraday)...
Source: Bloomberg
Are stocks getting ready to catch down to credit?
Source: Bloomberg
Treasury yields plunged today (biggest daily drop since mid-August)...
Source: Bloomberg
With 30Y Yields tumbling to their lowest since early October
Source: Bloomberg
And the yield curve flattened dramatically (most since early August)...
Source: Bloomberg
The Dollar dived again to its lowest in a month...
Source: Bloomberg
And offshore yuan suffered its biggest drop in 2 months to 7 week lows...
Source: Bloomberg
Cryptos dumped and pumped intraday but remain lower on the week...
Source: Bloomberg
Gold and Silver soared intraday and copper was clubbed like a baby seal...
Source: Bloomberg
WTI ended higher on OPEC production extension hopes...
Source: Bloomberg
Silver surged higher (best day in 2 months)...
And gold rallied back to a key resistance level (best day on over a month)...
Finally, this seemed appropriate...
Of course, one wonders if Trump's delay comments might be a way to force The Fed back to its Dovish ways - and the market has added half a rate-cut to expectations in the last two days....
Source: Bloomberg
And the real QE4 continues to placate the repo markets - for now...
And don't forget this is, by far, the longest bull market without a 20% correction in history...
Source: Goldman Sachs