Shutdown, Schmutdown: Stocks Soar To Record Highs As Bonds Bloodbath, Crypto Crashes

Markets had a brief moment of reflection on Tuesday...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod9_0.png

But that was rapidly shrugged off as a fleshwound...

This was a historic week for the S&P 500 - This most recent rally has now surpassed the 1959 highs and is the most overbought the index has ever been... ever...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod8_0.png

For context that is a 133% annualized return for SPX thus far in Jan implies 6220 year-end index level.

 

Small Caps were today's big winner...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod15.png

 

Small Caps were helped by yet another big short squeeze...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod2.png

Banks had a big week (MS notably outperforming GS)...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod10_0.png

Perhaps most notably, for the second week in a row, S&P and VIX were higher together... the first time since Nov 2013.

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod5_1.png

The notable decoupling between VIX and S&P has been ongoing all year...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod6_0.png

And we suspect is more aggressive call-buying bidding up vol than protection.

High yield bonds broke below their key moving averages again this week, notably underperforming equities...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod7_0.png

 

Treasuries were mullered - with the belly underperforming...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod11_0.png

as 10Y spiked above it recent highs to the highest yield since Sept 2014...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod13.png

 

The Dollar Index fell for the 6th straight week...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod14.png

 

Despite the considerable comeback, Crypto ended the week down hard...approximately 20% lower from Friday's close for each of Bitcoin, Litecoin, Ethereum, and Ripple...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod1.png

This was Bitcoin's 2nd worst week in 3 years and worst 2-week drop since 2011...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod3.png

 

Gold has been notably outperforming Bitcoin in the last two weeks...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_gold4_0.png

 

But all major commodities ended the week lower (despite a weak dollar)...

https://www.zerohedge.com/sites/default/files/inline-images/20180119_eod12.png