Dow Slumps, Nasdaq Pumps As Boeing & Bond Yields Dump

Here's the most important chart in the world this week...

Who is right? Bonds of course!!

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China had yet another National Team inspired buying-panic in the afternoon session to rescue stocks into the green...

 

FTSE outperformed ahead of the Brexit vote but EU markets were broadly lower today...

 

US markets were divergent once again with Dow (and Transports) lower but Nasdaq and S&P higher... (A weak close dragged small caps down to unch)...

 

Futures show the excitement once again at the cash open...

 

But Boeing's dead-cat-bounce from yesterday's cash session has well and truly died...(Boeing accounted for -160 points of the Dow's 100 point loss)

 

Once again a dramatic short-squeeze dragged stocks higher...

 

Credit and VIX compressed further...

 

Treasury Yields tumbled dramatically on the day - completely ignoring the equity market gains...

 

With 30Y Yields breaking back below 3.00% (and 10Y < 2.60% - see top chart)

 

The Dollar Index tumbled for the 3rd day back below the 97.00 level...

 

Of course, all eyes were on Cable as the "meaningful vote" on Brexit...

 

The weak dollar provided support for commodities broadly, but silver outperformed on the day...

 

Gold jumped back above $1300...

 

Finally, we reflect on the sudden panic bid that has occurred in Nasdaq stocks in recent days. With Nasdaq earnings plunging to their lowest since July 2018, we wonder what magic hockey-stick these so-called investors are seeing...