Bank of Japan Policy Panic Unleashes Stock, Bond Buying Pandemonium

Some soothing month-end meditation...

 

So let's start with today's idiocy... US equities driven by fundamentals!!

  • *S&P 500 EXTENDS GAIN TO 2.1%, HEADED FOR BEST DAY SINCE SEPT.8

 

But here is some context for January's moves...

For China...

 

Worst ever...

 

For US markets - apart from 2009's collapse, this is the worst January ever... Saved by today's total panic!

 

But bonds had a great one!!

This is Gold's 3rd January up in a row (and 8th of the last 11 years)...

 

Across asset-classes, Bonds & Bullion did well, stocks and crude not so much...

 

Small Caps underperformed while the S&P was the least bad performer...

 

FANTAsy stocks are all down aside from FB - with TSLA and NFLX down over 20%...

 

Bond yields are down across the curve... The belly (5Y and 7Y yield) outperformed - down a stunning 40-45bps on the month...

 

So not an awsesome month but hey... what a week right!!

*  *  *

On the week...even Nasdaq managed to get green despite AAPL and AMZN collapse...

 

Energy stocks simply exploded higher off Monday's lows...

 

Bonds & Stocks were bid...

 

With Treasury yields down 12-15bps on the week (though 30Y oddly underperformed)

 

The USDollar Index soared back to unchanged on the week after BoJ's idiocy...

 

Commodities all gained on the week with crude and copper best...

 

Finally today...

Total panic buying...

 

Yeah this really happened!!! 3000 points of swing in Nikkei 225

 

Creating a giant squeeze in US equities...

 

Well it is Friday after all...

 

And when does this ever end well for stocks?

 

Charts: Bloomberg

Bonus Chart: An awkward reality check...