Bonds & Bullion Bloodbath As Dow Dumps Into Red For 2018

Someone ask Bob Pisani if the bears are back in charge of the narrative?

Stocks were 'triggered' by retail sales data this morning...

And despite some roller-coastering, stocks largely trod water from the gap down open...

Dow (and Transports) tumbled into the red for 2018...

 

The Dow broke its 8-day win-streak and closed back below its 100DMA...

 

VIX mini-flash-crashed to a 12-handle on the retail-sales print then blasted higher to test a 15-handle...

 

Growth stocks bore the brunt today...

 

Treasuries were a bloodbath as yields at the long-end broke out of recent ranges...

10Y spiked...

To its highest close since July 2011...

 

30Y surged all the way to 3.22% - its long-term trendline resistance - and turned back lower...

We do note however that there is a huge amount of IG issuance this week - yesterday saw over $10 billion priced, putting primary market issuance well on its way to meeting survey estimates calling for $30 billion to $35 billion in weekly sales - and that would suggest rate-locks were actively being placed.

This was the worst day for an aggregate bond and stock portfolio in over 6 weeks...and 2nd worst since the Feb chaos...

 

Bear in mind that bond yields are spiking as economic data is disappointing notably...

 

Notable decoupling between bonds and the dollar today

One final thing of note before we leave bondland, the intraday loss on today's 10bp move (with a 10bn DV01, as detailed here) is roughly $100 billion!!!

The Dollar spiked to new cycle highs...highest since Dec 27th 2017...

 

Argentine Peso managed gains off the 25/USD floor that BCRA enforced ahead of the massive bond rollover today...

 

Cryptocurrencies lost ground against the dollar today with Bitcoin and Bitcoin Cash back flat on the week...

 

The dollar strength left a wake of damage in commodity land (though WTI held on to gains)...

 

Meanwhile, the Brent-WTI spread is at its widest since 2015...

As Bloomberg reports, U.S. oil reached $8.06 below the international benchmark Brent, the cheapest it’s been been since April 2015, when a ban on most American crude exports was still in effect. Geopolitical tensions in the wake of U.S. sanctions on Iran are boosting Brent crude near $80 a barrel, while surging U.S. shale production is keeping West Texas Intermediate in check. The spread between the two may widen to $10 a barrel, according to Walter Zimmermann, chief technical analyst at ICAP-TA. “This having the character of a panic blow-off, it’s probably going to happen pretty quickly.”

Today was an ugly one for precious metals as the dollar spiked. Gold suffered it worst day since Dec 2016, breaking back below its 200DMA and the key $1300 level...

It seems 80x for the gold/silver ratio was resistance once again...

Finally, we note that the odds of 3 or more Fed rate-hikes for the rest of the year just overtook the odds of 2 more hikes...

 

Comments

gdpetti pods Tue, 05/15/2018 - 16:25 Permalink

Yes, as its the same crew behind the cryptos as the rest of their offshore banking facilities... think intel needs for special ops... regime change aren't cheap, and it's best kept off the books, thus the cryptofest... great con... with Soros and crew helping out recently as well.

As for the PMs... look at a gold chart and you can easily see the same pattern of downtesting last year... July and December I think it was.. same pattern.... the real question is can they push it down to the same level? near 1275 I think it would be? It's only a paper game, so why not? at least intraday and in-house... just a little shits and giggles.. .long ago learned from our parents across the pond. The Great Game must go on.... until the OWO is given the signal to walk the plank.

In reply to by pods

TheWholeYearInn pods Tue, 05/15/2018 - 16:27 Permalink

@pods

 

LOL ~ I hardly even check mine... or, basically like once a day.

 

It VERY VERY VERY reminds me of having NASDAQ tech stocks in the wayback

@pods

 

LOL ~ I hardly even check mine... or, basically like once a day.

 

It VERY VERY VERY reminds me of having NASDAQ tech stocks in the wayback [f/s] machine of, say pre-1993... It was like, OK people will figure out sooner or later that this is the next paradigm, so, well might as well get a head start.

In reply to by pods

pods TheWholeYearInn Tue, 05/15/2018 - 16:39 Permalink

I heard that the twins were gonna list the coin and figured I would check. I couldn't believe how it shot up. Put in a couple limit orders and they were filled.  A quarter of the way to ROI, and it only a couple months, so on track for 8, unless I have to switch. A year was my target, so should be okay.

There is talk that bitmain is coming out with an ASIC that will make me switch. Saw a bit about Gemini and finally hit a peak, lol.

I hope that P2P takes off and becomes more commonplace. Great way to work outside their system.

Right now it was jump through hoops for verification, blah blah blah.

This tech could be the next internet, but the things it could be used for, those in control don't want to give it up.

Like voting. lol.

pods

In reply to by TheWholeYearInn

pods TheWholeYearInn Tue, 05/15/2018 - 17:30 Permalink

Yeah, it very well could end up being something like that.  It is the wild west right now.  Funny if you read the websites for coins. They all say the same thing lol.  Oh, and the whitepapers haha.

But it will change things in ways I can't imagine right now.

My wife saw vinyl in the store the other day.  So some things never die.

pods 

In reply to by TheWholeYearInn

ILoveGooold ShorTed Tue, 05/15/2018 - 16:19 Permalink

If you read beyond the headline, you would have noticed they all said that longs would have to be washed out and it would rebound after falling about $35-45 below the 200 DMA. Still about $10 off w/ room to fall based on technicals. I might blow half my load now in case it doesn't follow the pattern to a T... decisions decisions.

In reply to by ShorTed

Lizardking Seasmoke Tue, 05/15/2018 - 18:19 Permalink

It would have been interesting to see if ol Hilary would have passed a tax cut and doubled the household exemption. I doubt it... which is why she said they were never going to let me win. Who is they? Israel/Fed, 1% and large corporation power lobby. If Hillary won the market would have gapped higher then trended lower till now. Opposite happened with Trump. This is all pre orchestrated so the fed can continue to slowly unwind. PPT will push it as high as possible so even after a 30% sell off they are still in the Black with equity holdings. Media screams buy, seems like a good buy after a 30% drop but the selling continues. Who will get slaughtered, Retail once again... 

In reply to by Seasmoke

Yen Cross Tue, 05/15/2018 - 16:04 Permalink

  They didn't even try to hide it. The BoJ was all over $usd today.

  The 100day avg in all three equity indexes continues to bend slowly south.

Jim in MN Tue, 05/15/2018 - 16:17 Permalink

Some stories ZH is missing today:

http://thehill.com/opinion/white-house/387625-mueller-may-have-a-confli…

John Solomon, top investigative reporter, on potentially show-stopping news about Mueller and a failed plot to return an FBI asset from Iran using tens of millions of Russian oligarch cash.

http://thehill.com/policy/national-security/387808-prosecutors-unable-t…

Prosecutors unable to bring charges against suspect in leak of CIA hacking tools

http://thehill.com/policy/national-security/387799-warner-to-back-haspe…

Warner vote clears path for Haspel confirmation

Quivering Lip Tue, 05/15/2018 - 16:28 Permalink

No worries R2K 1% from all time high. 

Analcysts tell me rising rates are good for small caps cause rising rates means economy is getting better. 

Bwahahahahaha

With logic like that R2K should be trading 1750 if 10 year hits 3.5%.

ROFLMAO

 

Conax Tue, 05/15/2018 - 16:49 Permalink

Heavens to Betsy, just think how gold and silver would have been bashed if we didn't have that paragon of virtue in the WhoreHouse presiding over these exchanges with the love of Jesus in his heart.

It could have been a real bloodletting!  /s

Squid Viscous Tue, 05/15/2018 - 17:13 Permalink

just a minor blip on the road to 26000 by Cannon Fodder weekend,

so they can party on in the Hampsteins...

and laugh about all the dumb goyim that have died in their wars

Flatchestynerdette Tue, 05/15/2018 - 22:49 Permalink

If the author of this daily article is still reading comments can I please ask for clarification forward - where is the money going to? I see US$ but that's about it. Even the UST's came back into channel. So it was a churn day that ate the 100dma uptrend? I guess money went to cash then?  Banks would be down if that were true. How'd they do. GS is at 20% subprime now on their books & about to offer an Apple card to get more subprime bc the 20% isn't performing. If that's true then is it all Amazon & its distributors only? Especially now that they're the front runners to get the Pentagon's JEDI cloud. Where's that chart please?