Bond Yields & Bitcoin Bounce But Trade-Talk Trumped Terrible-Data For Stocks

Remember Sunday... when a single Chinese 'soft' data survey beat prompted panic-buying around the world? Well, by the end of the week, Global macro data had extended its decline (but that never stopped stocks)...

Because only one thing matters... "a trade deal"

Never mind though, the market is not the economy and so "It's not the economy, everything is awesome, stupid!"

China was closed last night but the last five days have been insane in Chinese stocks leaving ChiNext up over 9%... (SHCOMP's 2nd best week since March 2016 to its highest since March 2018)

 

Germany's DAX led European markets higher, despite a collapse in its factory orders...

 

China is leading the world with another leg higher, crushing Europe and US...

 

US markets all gained solidly, helped by the Monday gap open after China... Trannies were best on the week...

 

Odd day for The Dow, rallied after the close on Xi comments, ripped on the jobs data, dumped at cash open, dumped after Europe close, then pumped and dumped into the close...

 

Don't forget - its payrolls day - so no matter how crap or how great jobs data is - you buy the dip...

 

This was the biggest short-squeeze week in 2 months...

 

And buyback-related stocks soared... (biggest 2-week jump since the start of 2019)

 

Huge week for semi stocks, surging to a new record high...best week for semis in 5 months

 

Credit and equity protection costs plummeted this week...

 

But VIX and stocks remain decoupled...

 

But the jaws between bonds and stocks remain the widest...

 

Despite some gains today, bonds were ugly this week with yields up 8-10bps across the curve...

 

But 10Y remained below 2.50% (and 30Y below 3.00%)...

 

Inflation Breakevens were up on the week but flatlined the last few days even as Oil exploded...

 

The Dollar ended the week unchanged (despite all the excitement over a trade deal) despite some volatility intraweek...

NOTE the resistance at 1200 for Bloomberg Dollar Index.

Cable mirrored the dollar as Brexit headlines dominated once again to leave the pound unchanged...

 

Cryptos had their best week of the year with Bloomberg's Galaxy Crypto Index up 21.5%... led by Bitcoin Cash and Litecoin...

 

With Bitcoin holding above $5000...

 

PMs ended the week unch - in line with the dollar - but crude and copper diverged dramatically...

 

In precious metal land, palladium's pukefest continues as platinum has become the new favorite (on the week, gold and silver were unch)...

 

As an aside, Copper/Gold and the UST 10Y yield have recoupled (just like Jeff Gundlach said)...

 

WTI surged today, breaking above $63 to a new cycle high (BRENT topped $70)...

 

And Lean Hogs soared as asian piggy flu struck...

 

Finally, it's different this time... for now...

And while 'risk-on' is in full swing, positioning in 'risk-off' assets is not playing along with the theme at all!!

And remember, Q1 was hedge funds' worst start to a year since 2012 (presumably since they follow some rational investment thesis that simply does not compute with the new normal equity market)...