Yield-Spike Spooks Stocks, Commodities Clubbed As Dollar & Bitcoin Bounce

Seriously...

 

It was ugly in Asia overnight (and US futures were weak before the open)...

 

Just as we saw last Friday, it appears that today's yield spike in Treasuries (driven by a weak auction and more fiscal largesse in the budget deal) spooked stock investors..

 

 

 

S&P, Dow, and Nasdaq ended the day red as the whole market slipped into the close (NOTE the idiotic swings in The Dow in the afternoon)...

 

Futures show the wild swings did not stop...

 

Once again, the inverse VIX (XIV) ETF was running the show for The Dow...

 

The Dow was well-managed in the last hour (just as we saw yesterday), critically clinging to its 50DMA this time...

 

VIX ended the day lower... but backl above 25 into the weak close...

 

But for context, S&P's VIX remains around 70-80% higher than Thursday's close last week...

AAPL was weak again today as yesterday's dead cat bounce fades...

 

FANGs also tumbled...

 

Treasury yields spiked notably today... 30Y is now higher on the week but the 5Y/7Y belly remains lower in yield on the week...

 

With 10Y yields back above 2.85% - where the carnage began on Friday...

 

The Dollar Index surged back to a key support/resistance level today - breaking back above Mnuchin Massacre highs...

 

Commodities were clubbed like a baby seal across the board as the dollar rallied...

 

But WTI/RBOB were really ugly after the surge in production and big build in inventories... back to one-month lows...

 

Cryptocurrencies had a good day (as VIX dropped)...

 

With Bitcoin bouncing back above $8,000...

 

Another down day for aggregate bond and stock holders... Risk Prirty is in trouble...

 

Comments

Hammer823 Wed, 02/07/2018 - 16:03 Permalink

The powers that be are so desperate to preserve their wealth effect; they won’t even allow stocks to drop a mere 5% from record all-time high valuations.

Even though we closed down, every time indexes dropped into the red today, the invisible hand bid them right back into the green.

Buy the indexes when they are down in the morning.  Sell in the afternoon.  This trade has worked for 10 years. It’s worked because the stock market is rigged to go up.  Why not make money on the corruption?

Why would anyone be a bear?

It’s like the bears are playing poker, and the House (fed, government, banks, companies) keeps handing the bulls across the table all the cards they need to win. The bears keep betting and wonder why they are losing.  The House is doing everything it can to make the bulls win.

Everyone WANTS stocks to go up forever.  Everyone NEEDS stocks to go up forever.  Everything Central Banks, Governments, Institutions and Company’s do is DESIGNED to make stock prices go up forever.

walküre shankster Wed, 02/07/2018 - 16:19 Permalink

I don't mind PPT to do what they do best.. but aside from that there is absolutely no conviction from institutional investors.

Let them manifest the indexes at these levels. At least it gives us an illusion of something. The raw and unadulterated truth would be complete mayhem in the streets and our lives would be fucked. If they can keep pushing things on a string, let them. The party will end one day and as this site suggests, there is "zero hedge" when that happens.

Honestly, we got bigger things to worry about. Africans are breeding a million people per fucking day and there's no end or relief in sight. Imagine the population growth of these maggots and the havoc they wreck in 10 - 20 years on the entire planet.

Fuck that's depressing.

In reply to by shankster

D.r. Funk Hammer823 Wed, 02/07/2018 - 16:11 Permalink

You're forgetting the context that WE ARE IN BOOMBUST FOR THE LAST 19 YEARS

It DID NOT END ten years ago

You're rhetoric, or memory, is OBLITERATING THE FACT THAT econ and business cycles still occur

And the GREED OF THE US and it's BULLSHIT POPULATION [of which i am one] is woefully asinine

It is extreme-cognitive negligence to dismiss OR FORGET that boombust is the prevailing backdrop of the us

In reply to by Hammer823

Keltner Channel Surf Wed, 02/07/2018 - 16:04 Permalink

from   “Heaven Knows I’m Miserable Now”      by The Smiths

I was basking in the haze of Yellen’s finest hour
But heaven knows I’m vulnerable now
I was looking for a broker, and then I found a broker
And heaven knows I'm vulnerable . . .

. . . What she bought for me at the end of the day,
Gartman would have blushed
"Oh, you’ve been in all cash too long" she said
And now they’re, naturally, red  . . .

I was riding on parade floats strewn with Keynesian flowers
But heaven knows I'm vulnerable now
"Oh, you’ve been in cash too long ...

Blankfuck Wed, 02/07/2018 - 16:04 Permalink

Those fat fucker bankers love this ponzi game! Just keep being a slave to the pigs, shut up and pay their debt. Let them shit big after the filet mignon they eat on those big yachts-its gods work so blankfuck said.

Im starting a new reality show called "the shit show by federal reserve bankers" We can watch and score how big each pile of shit they take!  A good measuring device on how the printing, collusion and corruption is going too!

lester1 Wed, 02/07/2018 - 16:08 Permalink

There there are so many idiots still buying Bitcoin. The chart looks absolutely horrible. Bitcoin is too much competition with other cryptocurrencies, that is why it's in terminal decline.

shankster Wed, 02/07/2018 - 16:08 Permalink

And they did not reach a 'budget agreement' they reached an agreement to raise spending caps and to increase the deficit. Spending more of your tax $$ on shithole economics. Can kicking..

Kaiser Sousa Wed, 02/07/2018 - 16:09 Permalink

from yesterdays closing post...

"nothing shows that US indexes are models of genuinely free “markets” and investor driven activity like todays 600 point reversal  beginning PRECISELY in the last hour of “trading” in New Dork…"

i lost count at around fifty of the 100 plus point reversals on the Dow Jones Propaganda Index that occurred not in minutes, but IN SECONDS…"

now i ask - what happened 2day and what did they try to orchestrate in the last hour of "trading" in New Dork????

i told ya’ll a long time ago…

"when the same bullshit happens every fucking day there’s no need to write, just cut and paste… 

Kaiser Sousa -

DEATH TO THE MONEYCHANGERS. 

DillyDilly Wed, 02/07/2018 - 16:09 Permalink

I was always a fan of the SEATO DECAPITATING.

 

I mean ~ Let's get real. Any military strategist spends 4 years at West Point learning you have to start by putting "X" in the middle square.

davatankool Wed, 02/07/2018 - 16:10 Permalink

In order to see a Friday's bloody selloff, the yield would have to raise again steadily tomorrow. the DOW will end in flat or bit in red tomorrow.

 

 

wmbz Wed, 02/07/2018 - 16:13 Permalink

I just wish that the bitch monkey that hammers Au&Ag, would get a much bigger hammer, a damn sledge hammer!

Beat it way the hell down! I would love a chance to load another fire proof box full. Not that I ever have before.