Small Caps Slammed And Bonds Bloodbath As Tax-Hopers "Sell The News"

Sometimes better not to play at all...

 

Bonds & Stocks both slammed lower today - the worst combined day since 11/9/16...

 

Trannies ended the day higher but the rest of the major US equity indices "sold the news"...Small Caps worst...

 

Futures show the excitement better over the last two days (not the dip in Nasdaq to unch from Friday before bouncing)...

 

High Tax companies did manage to outperform for the second day in a row but it was not exactluy breathtaking...

 

FANG Stocks sank into the red for the week...

 

LongFin rallied (despite CRCW's suspension)...

 

Banks drifted (despite the curve steepening) with Goldman giving back all of yesterday's gains...

 

The last two days have seen the biggest spike in Treasury yields since the election (but note that yields started to roll lower after the tax vote)

 

And the biggest steepening of the yield curve since before the election... (NOTE - the long-bond was not helped by comments on more long-dated issuance by Germany pushing their curve steeper)...

 

Note that 30Y Yields are following a very similar pattern to November's FOMC...

 

Don't get too carried away on this bond yield rip though - long-bond speculators were at near record longs and had added to net longs the most since 2007 - so it's a positonal squeeze, not a trend change...

 

The Dollar index faded lower after the House tax vote to end the day lower...

 

Commodities were all marginally higher on the day with gold leading the week...

 

Gold was steady on the day as Bitcoin slipped lower...

 

But while bitcoin was lower on the day, most of the rest of the crypto space rallied... (all major cryptos dropped overnight on the Korean exchange bankruptcy)

 

And if you're feeling really brave - here is your Bitcoin arb of the day... Buy BTC Futs, Short GBTC (good luck!)...

 

Finally we note that the T-Bill curve across year-end is inverted and starting to signal some government shutdown concerns...

 

Bonus Chart: The Death Cross of Rationality...