Bullion Jumps To Post-Election Highs As Banks Give Up 2017 Gains

United Airlines new policy...

 

Gold leads in 2017 as geopolitical risk finally begins to get priced in...

 

In no particular order:

  • US threatens North Korea
  • Everyone on the same side of the boat (long stocks, short vol, short bonds, short Eurodollars)
  • US threatens Russia
  • Fed intent on tightening no matter what
  • China warns of red lines
  • Russia calls 'false flag', builds alliance
  • US threatens Syria
  • Increased frequency of terror attacks in Europe
  • oh, and finally, Frexit looms as election in Europe are highly uncertain

But apart from that, US Hard Data at one year lows, Soft Data at record highs predicated on Trump tax/stimulus plan - looks increasingly uncertain

Stock valuations are at or near record highs...

And earnings and economic expectations are tumbling...

And US Government shutdown looms

 

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Ok so having got that off our chest - here's what today looked like across asset classes... Bonds and Bullion were the safe havens as the dollar was dumped, crude spiked on Saudi/OPEC headlines but could not follow through...

Trannies and Small Caps up on the week, and despite the late minute ETF rebalance panic bid, The Dow, S&P, and Nasdaq ended red on the week...

 

VIX spiked to post-election highs...

 

VIX almost reached 16 in traday...

 

The Dow clung to its 50DMA after breaking below it...

 

Tech stocks are down 8 days in a row, the longest losing streak since before the election...

 

Bank stocks have been a one-way no brainer trade since the spike after trump's speech to congress...

 

USDJPY was clubbed like a baby seal...

 

Treasuries erased all post-payrolls, post-Dudley losses with yield tumbling and the curve flattening....

 

Oil's spike supported stocks in the afternoon until NYMEX close...

 

But the day belonged to gold - bursting above $1275 and its 200-day moving average at its highest since the election...