Stocks Gain, Bonds Feel No Pain As Cryptos Crash & Dollar Triggers 'Golden Cross'

Stocks are higher... so the economy must be doing great and Trump must be awesome and trade wars don't matter, right?

 

Trannies outperformed and Small Caps managed to extend gains as US equity markets shrug off the weekend's rhetoric and any potential for errors this week...all spoiled with an ugly close...

 

Someone shit the bed at the close...

 

Tech managed to scramble back and ended flat relative to financials today...

 

VIX was practically unchanged despite the stock market gains...

 

In credit-land, even Goldman Sachs has started to notice the dramatic divergence between IG credit and stocks...

 

Treasuries inched higher in yield with 2y notably underperforming...

 

10Y Yields traded in a crazy narrow range of less then 2bps...

 

The yield curve flattened notably on the day ahead of the start of FOMC tomorrow...

 

And while all eyes were on America's northern neighbor after this weekend's G-7 debacle, it is the southern neighbor that is struggling as Mexico's credit risks surges to the highest since Trump's election and furthermore, above the credit risk of Russia for the first time since March 2008...

 

The Dollar Index managed a small gain but remains in the extremely narrow closing range for the 18th day in a row...(1168, 1170, 1169, 1168, 1169, 1168, 1171, 1173, 1177, 1170, 1171, 1172, 1171, 1172, 1170, 1170, 1170, 1172...)

 

The Dollar Index also completed its Golden Cross today (50DMA crosses above the 200DMA)...

 

Emerging Market FX tumbled...

 

After a couple days of resurgence, Brazils' Real rolled over today as Argentina's peso puked to new record lows...

 

Finally in currency land - cryptos were clubbed like a baby seal after news of a hack of the 98th biggest exchange in the world...

 

Silver managed solid gains despite dollar strength and copper's recent ramp ended abruptly...

 

Big intraday swing in crude today...back above $66 again

 

Gold rebounded off $1300 once again...

 

The gold-to-silver ratio tumbled back to unchanged for the year...

 

Finally, in the "this won't end well" file; Canaccord Genuity's Tony Dwyer notes that the Federal Reserve’s monetary policy uncertainty index has only been this low in four other instances, each which was followed by a sudden swing in equity prices...

Comments

lester1 Mon, 06/11/2018 - 16:03 Permalink

Bitcoin is dying. More people are waking up to the fact that all these cryptocurrencies are ponzi schemes. There's no mass adoption happening. The IRS subpoenaed all the records from Coinbase and Gemini looking for tax cheats. The whales are getting the heck out of dodge. 

 

If you already sold and made a profit, congratulations. But the Bitcoin bubble is slowly deflating and lot of greedy HODL'ers are getting wiped out!

Snaffew JimmyJones Mon, 06/11/2018 - 17:11 Permalink

the limited supply is a misinterpretation.  The constant additions to the crypto space---1600 cryptos trading and counting, is in itself a massively diluting variable.  Each new crypto that comes online dilutes money away from the other cryptos.  Soon, every company will be sporting a crypto---they will be as common as domain names.

In reply to by JimmyJones

vasallo7g Snaffew Mon, 06/11/2018 - 17:40 Permalink

> Each new crypto that comes online dilutes money away from the other cryptos

Nope. Every crypto stands on its own. Just like every fiat currency stands on its own. 

That is one of the beauties of BTC, there will only be 21 millions of it.

On the other hand, they are printing fiat like confetti. 

In reply to by Snaffew

adr tmosley Mon, 06/11/2018 - 16:56 Permalink

In 2011 Jim Cramer said on Mad Money that by 2014 my company was going to be worth $2.4 billion. Funny how we were only doing around $120 million in sales in 2011.

In 2013 we were out of business.

 

I'd would have rather had the $2.4 billion.

 

There were a lot of people who went all in on Bitcoin above $14k who are down a whole hell of a lot. IN fact a lot more than those who bought in under $5 grand and are still up.

In reply to by tmosley

DoctorFix vasallo7g Mon, 06/11/2018 - 18:49 Permalink

Nobody saw the Feds coming for their gold back in the day and nobody will expect cryptos to be outlawed for whatever corrupt reason the powers that be will pull out of their collectively evil asses. Until they have engineered a means to control or tax these "instruments" it's all a game.  Enjoy it while it lasts because it won't in its present form.

In reply to by vasallo7g

. . . _ _ _ . . . lester1 Mon, 06/11/2018 - 16:20 Permalink

I think you might have it backwards.
The whales are hodling, it's those who pumped it up who are getting cold feet and have been steadily dumping.
Those who bought just for buying and didn't understand what they were getting into are running away dazed and confused, but when the $ starts tanking, watch them rush back in.

No matter what happens to BTC, the space isn't going away; diversify, like you would with any investment, keep it modest. Not a lot of risk there. This is the beginning of how the internet will work from now on. Isn't that big enough a market for wild upside?

In reply to by lester1

ProstoDoZiemi . . . _ _ _ . . . Tue, 06/12/2018 - 01:08 Permalink

It's only worth whatever the next dumbass is willing to pay for it, like anything else.

In my eyes, a house is worth the cost of materials and labor it took to build it, not what some imaginary number some twat decided to put down on a piece of paper. If it cost 250K and you want to come along and pay up 325K like a dumb ass, fine that's your problem, but it's worth 250K at your loss

In reply to by . . . _ _ _ . . .

khnum lester1 Mon, 06/11/2018 - 16:21 Permalink

They will have a use for blockchain- after William the Conqueror conquered Britain he had the Doomsday book compiled every landowners every chicken,cow and crop was listed and from this tax was deduced,blockchain will be the electronic equivalent all these cryptocurrencies are just practice.

In reply to by lester1

D.r. Funk Mon, 06/11/2018 - 16:04 Permalink

"Oh - A 2 hour sustained fairly-uniform rate of increase following a naturally tepid/muted start, Then a relatively quick burst of buying initiates after drift starts building"

Couldn't seal it today - Fuckers
FLAT - Dow NOTHING - Nasdaq FLAT - Spy
Or purposed trick - Fucker-manipulators
 

In.Sip.ient Mon, 06/11/2018 - 16:06 Permalink

Trade wars make excellent POLITICAL sense.

 

Every country is playing rally around the leader

including the USA over these spats. 

 

It practically guarantees the dufus politicians

that should expect to be kicked out in any

election in the next 4 years will instead get

re-elected.  BRILLIANT for politicians.

 

Not so good for you...

 

Dilluminati Mon, 06/11/2018 - 16:09 Permalink

One of the smarter people I work with asked: don't these people understand Crypto can be hacked?  And she was correct, but as importantly don't the stupid fucks who bought into the scheme realize that they are manipulated?

I'm still waiting John McAfee to eat his dick.

https://www.theinquirer.net/inquirer/news/3022195/john-mcafee-will-eat-…

This guy says he is running for office again, not to actually win, but instead pimp Crypto garbage, I wonder if people were actually gullible enough to buy into this?  If you got in, got out, dropped that bag-o-shit on a greater fool, then good for you.. 

adr Dilluminati Mon, 06/11/2018 - 17:01 Permalink

A lot of people here say that recognizing it is a scam and making money off the fools who bid it up is a smart thing to do.

Essentially that is how the Wall St con men made their fortunes.

Isn't it better if we don't allow the scams in the first place?

But is it in human nature to fall prey to the con man?

Billions have fallen prey to the scam of the Vatican. Satanists grabbing your money to do the work of "God".

 

I remember going to a temple in China and my local contact was showing me the offerings people gave to the monks. Then he showed me the homes the monks lived in and the $250k Range Rovers they drove.

 

In reply to by Dilluminati

buzzsaw99 Mon, 06/11/2018 - 16:31 Permalink

Someone shit the bed at the close...

Argentina's peso puked to new record lows...

- cryptos were clubbed like a baby seal...

Sheer Poetry!  [/Miss Shields]

mosfet Mon, 06/11/2018 - 17:20 Permalink

Quick, name an asset that...

can cross borders seamlessly

is outside of banking & credit card system

that no one can print

can be purchased instantly by anyone, anytime without driving to a vendor

can be used in both point of sale and person-to-person transactions

cannot be confiscated or stolen without consent from the owner

 

Now tell me if such an asset might be useful to an average citizen either living within or escaping hyperinflation in a cashless/digital first world economy?

And how certain are you that the economy you live in will never go cashless and your government will stop inflating the currency?

IMO this is the easiest trade ever..just add time.