Credit, Crypto, & The Yield Curve Crumble As Stocks See Longest 'Dipless' Streak In 58 Years

As the yield curve rolls over again and credit crumbles, stocks just wanna go higher because... well that's what stocks do...

Small Caps were squeezed higher once again led by Financials and Energy stocks (Utes weakest) - stocks were weak again into the close... (Trannies ramped to unch at the close) - weakness started around the Catalonia vote...

 

 

Futures show the open was dumped again... and bid again...but weak into the close...

 

NOTE -Small Cap ramp today was all about getting green for the month...

 

Another short squeeze at the open BUT is it now out of ammo?

 

There have been 374 trading days without a 5% or greater pullback, the second longest streak since 1928. This is pretty remarkable considering that 5% pullbacks have occurred, on average, 3x per year since 1928.

 

Banks were up notably today as FANG stocks sank again...

 

High-Tax companies outperformed once again...

 

Credit markets continue to flash warning lights...

 

And as professionals have been selling high yield debt, they have also been selling into any intraday strength in stocks...

 

The Bond Bloodbath is over.. for now. 30Y outperformed notably on the day...

 

After 3 chaotic days in the yield curve, just as we noted yesterday, both the 30Y yield level and the 2s30s curve turned around at critical resistance levels (FOMC meetings).

 

And the 2s30s curve tumbled over 6bps today (one of the biggest flattening days of the year), turning on a dime at the FOMC Minutes levels from Nov...

 

The Dollar was somewhat chaotic today ending the day unchanged (down on the week)...

 

EURUSD ramped after the Catalonia election results showed the separatsist in the majority..

 

Interesting how flat the Dollar Index has been given the surge in Yuan..

 

Copper and Crude continue to lift this week

 

Cryptocurrencies carnaged with Bitcoin Cash battered (XRP and XCU were up large)...

 

Bitcoin has been on a serious down-trend since CME futures were unleashed (and has collapsed the futures premium to spot)..

 

Gold continues to converge back higher to Bitcoin (relatively)...

 

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