Trump Tweet Sparks Bitcoin, HY Bond, & Stock Buying-Frenzy, World War 3 Deferred

World War III on the horizon, Russia warning of possibility of conflict with US, and a tweet that said absolutely nothing definitive sparked exuberant equity buying...

 

One quick question - if, as all the "smart" people say, "the market hates uncertainty," what exactly did it find so inspiring about the President's tweet "Never said when an attack on Syria would take place. Could be very soon or not so soon at all!" - Seems to us that stocks LOVE Trumpian uncertainty... or was it just the machines running stops again?


And if that wasn't enough "uncertainty" for you, Bloomberg reports that Lloyd Blankfein said the U.S. economy has responded to Trump’s tax cuts, but that Americans should get used to political uncertainty for the foreseeable future. Goldman’s CEO, a frequent public critic of Brexit, also said that its opponents are becoming reconciled to Britain’s departure from the European Union, which hasn’t had as much of an impact on the economy as he would have expected.

"I would have thought that there would have been a more dramatic effect by now," he said. He warned that the political uncertainty is still likely dissuading other companies from investing in London, as Goldman Sachs did when it committed to build a new headquarters in the city well before Brexit seemed likely.

Futures show the excitement best - futures surged on Trump's tweet and then re-surged at the cash open - erasing all losses in all major indices post-Trump's call for $100 billion tariffs...

 

Cash market stumbled on the headlines that Trump was meeting about Syria and had 8 targets and comments from Russia... and finally some headlines on Mueller were enough to send stocks lower into the close..

 

The S&P 500 briefly tagged unchanged for the year today...

 

The big banks rallied handsomely on the day (as earnings are set to begin)...

 

But we note that the smaller banks have been notably underperforming the market - tracking the tumble in the yield curve...

 

FANG Stocks gained modestly on the day, but seem to be making a large head and shoulders pattern...

 

Someone was very excited in HY credit today - buying over $600 million of JNK and HYG... as the former broke its 200DMA...

 

Treasury yields started to 'catch up' to stocks today... (or was China selling?)

 

Bonds were hit relatively hard today...

 

But it only too the 30Y back to Monday's highs...

 

The Dollar rallied for the first day since last Thursday...

 

Cryptos had a big day (that's something we haven't said for a long time). Bitcoin topped $8,000 and its 200DMA, Ethereum and Ripple are up 25% this week as tax-related selling pressure lifts...

 

Some suggested that this was catch up to Nasdaq's recent exuberance after Bitcoin was hampered by tax-based selling...

 

Dollar gains were not enough to spook crude, which bounced again, but PMs and copper gave up most the week's gains...

 

WTI has erased about half of its plunge...trading back at Dec 2014 highs...

 

Finally we note there's a lot of hope in earnings expectations...

And while we keep seing the opening ramp (8 days in a row now), there is a late-day selling pressure that is signaling 'SMART' money ain't lovin' it...

 

Comments

Coinista MoralsAreEssential Thu, 04/12/2018 - 17:59 Permalink

Here come the jealous, loser, no-coiners...

"Oh... high order math makes my brain hurt."  "Oh yeah, well science is stooopid anyway."  "Muh rocks are gonna do better than your fake money even though muh rocks have sucked for ten years."

So sad that the intellectual lightweights can't grasp the magnitude of the disruptive technology in Bitcoin.  You still have time to change your jealous loser ways, no-coiners.

BUY BITCOIN!!! Losers.

In reply to by MoralsAreEssential

The Ram Quantify Thu, 04/12/2018 - 18:05 Permalink

That's because we were the winner thanks to having a monopoly on nukes in 1945. Now, lots of people have nukes and there will be no 'winners'.  Just lots of irradiated souls.  I am a glass half full kind of guy.....when there is no huge wars or massive taxes to strip people of their wealth.  

In reply to by Quantify

VZ58 lester1 Thu, 04/12/2018 - 16:35 Permalink

Only doom pornophiles lap up this sh*t.  Here's a clue for all the doom and gloom morons. It's all about making money and wielding power. WW3 has a negative effect on cash flows and the stability of the power structure. Small wars are much better to sustain that. ZH is becoming like some snowflake university course these days: the people commenting have become the C- crowd.

In reply to by lester1

DillyDilly lester1 Thu, 04/12/2018 - 16:46 Permalink

lester ~ " Enjoy your losses. "

 

What losses?

 

About 3 threads ago you were giving somebody (who had bought BTC several years ago & stated that they were HODling) the business about not reporting their capital gains taxes (which they're not required to because they've never sold the asset that they purchased)...

 

That was followed by some other comment about BTC 'losing 60%' & whereby it was CRICKETS from you when asked what the purchasing power on the US Dollar [or lack thereof] has been since 1913...

 

& even that was followed by some dimwad that tried to say that the 'purchasing power' of BTC [even at the moment], was ZERO...

 

& whereby I gave [the latter dimwad] a link to all the BTC ATM's worldwide and asked for him to provide the same kind of link to GOLD BULLION ATM's (like where you drop an EAGLE in a slot and the machine spits out the spot price of gold ~ in cash)...

 

But that dude must have had an aneuryism in that moment in time because nobody ever heard back from him... If he'd have been mosley, which I'm sure he wasn't, at least have had the courage to DOUBLE DOWN and pull another Tom Clancy novel out of his ass, but I still was waiting on pins & needles about his MIOTA & BCH holdings...

 

You see? Those are the kind of 'YUKS' I get... Not the type that involve the dude who spends half his time in tweet wars against Colin Keaperniks girlfriend & porn stars, & has his hand on the nuclear football, YUKKING AROUND  while spending his spare time trying to play a game of chicken so that Russia can sell missile defenses at a higher price or not to exhonorate mosley from being a COMPLETE IDIOT on ZH...

In reply to by lester1

Giant Meteor johnnycanuck Thu, 04/12/2018 - 18:32 Permalink

By the way dammit, it's not incompetent Hillary, it's crooked Hillary! Quit flippin the script! The upvote however is mine because you were good enough to remember the trail of tears .. I've got a bit of injun blood in me myself, plus Irish, so I was doubly fucked. Never really good with the firewater, so yes yes, a trail of beers and tears ..

X boilermaker man .

In reply to by johnnycanuck

DillyDilly Giant Meteor Thu, 04/12/2018 - 18:08 Permalink

@GiantM ~ 'convefe' is, like, 6,000,000 - D chess... It's like Game 6 of Fischer~Spassky compared to #covfefe ~ lol

 

Somewhere in the world at this moment ~ HOPI Indians are in their caves painting #covfefe on the walls (with antelope blood), to WARN future generations that the last annihilation of human life on the planet came about because some DOTARD, didn't have the capacity to distinguish TWEETS directed towards Stormy Daniels & Colin Kaeperniks girlfriends from other ones trying to GAG a game of chicken against the Russian military so that he could score points with jews...

 

I voted for YOU (by the way) in 2016...

In reply to by Giant Meteor

Socratic Dog RafterManFMJ Thu, 04/12/2018 - 16:29 Permalink

Well, in Australia the MSM is not mentioning this (war theater) at all.  But they are saying Trump is doing a flip-flop on the TPP.

Funny, I haven't seen that one over here.  I imagine his base might be a little bit unhappy with it.

You know, theater is fine and all, but...I hope Russia knows it's theater.  Coz,if I was Russia,and knew I had to do something this time, I'd be thinking, why wait till they start shooting?  Fortune favors the bold.  Better to get the first punch in.

An ultimatum, followed in short order by the sinking of any US Navy ships (hopefully Israeli too) in the Eastern Med would do wonders to concentrate Trumps thinking.  Let Trump be the one to decide whether to escalate, and risk WWIII.

In reply to by RafterManFMJ

crazybob369 RafterManFMJ Thu, 04/12/2018 - 17:01 Permalink

Let me compile a small list of items the peoples need to be distracted from:

 

1. $21 trillion deficit growing by $1 trillion per year.

2. Hundreds of trillions of future unfunded liabilities.

3. $1.2 trillion in student debt 40% of which is currently in default.

4. Crumbling infrastructure. As detailed by ASCE our nations bridges got a C+; roads D; levees D; transit D-; aviation D-; dams D.

5. U.S. ranks 14th in education in the world (out of top 40), but 2nd on the world ignorance scale (only Italy is more ignorant).

 

There are many others. Feel free to add to the list

In reply to by RafterManFMJ

Labworks Thu, 04/12/2018 - 16:04 Permalink

Tweeter in chief..

No guidance when it comes to sanity

Spoiled brat as a kid, parents couldn't stand him

Off to Kingston NY he goes, you're with us now, Chump.

 

 

EddieLomax Anonymous_Bene… Thu, 04/12/2018 - 16:45 Permalink

The God emperor has tweeted.

I think people are deluded (myself included at times) when we believe Trump can act without any regard to the rest of the slime that consists of the government.  At the same time I wonder where this is all leading, if Trump wanted to do this then he'd have jumped on it, he's clearly by his standards non-committed, yet neither has he said no, so there is a reason for that too.

 

I'm sure there is no coincidence the chemical attack bullshit came out in the UK at the same time, the amateurish nature of it smells like a senior civil servants idea of what goes for imaginative.  A concerted push on Russia just before a major sporting event, feels planned.

Yet, where is this going?

I can understand the US-Chinese rivalry, since previous US administrations have sold out to the Chinese building them up as a serious economic rival.  But Russia isn't a serious economic rival, nor is it trying to build itself up as one, so what is all of this supposed to achieve?  I can only suppose the whole point isn't Russia at all, but cementing control at home - more military spending and a convenient bogeyman to whip up fear with.

Meanwhile the Islamic hordes increase...

In reply to by Anonymous_Bene…