Traders Buy Everything On Hopes That Virus “Contained” – Stocks, Bonds, Gold, & USD Jump

Stocks were bought with both hands and feet once again overnight, surging to new record highs because the virus is “contained”…

And, reportedly, this is the chart that many suggest shows that ‘peak virus’ has passed as the total number of virus cases shifts from exponential to quadratic…

However, what many do not fully understand about the chart is the policy change that China instigated, locking down homes and telling citizens to only come to hospital if they are severely sick… meaning there are plenty of cases locked up at home, afraid to leave the house as they have seen what happens in many of the leaked videos we see.

No matter that, investors, traders, and the machines bid for stocks, bonds, the dollar, precious metals, copper, and crude.

However, the buy-both-bonds-and-stocks trade has been going on all year (and bonds are outperforming)…

Source: Bloomberg

Chinese stocks shot up again with small-cap-tech in ChiNext leading the charge (up massively)…

Source: Bloomberg

European stocks also extended the week’s gains…

Source: Bloomberg

But US stocks were mixed today – all gapping higher at the open but with small caps and trannies lower…

Record closes for S&P, Dow, and Nasdaq

But everything still up large on the week…

Thanks to yet another short-squeeze (the biggest 4-day squeeze in 5 months)…

Source: Bloomberg

Casper IPO’d at 12, opened at $14.50, briefly popped.. then dropped…

Momo and Value resumed their trend after yesterday’s breakdown…

Source: Bloomberg

Cyclicals were flat today as defensives rallied…

Source: Bloomberg

Treasuries were mixed today with yields dropping at the long-end for the first time in 4 days (30Y -3bps, 2Y unch)…

Source: Bloomberg

30Y reversed across the virus gap…

Source: Bloomberg

The Dollar extended its spike above 2-month highs…

Source: Bloomberg

Yuan slipped lower…

Source: Bloomberg

Bitcoin rallied further today, testing $9850 intraday…

Source: Bloomberg

Precious metals rallied on the day but copper leads the week…

Source: Bloomberg

While stocks rallied, gold has been bid the last two days…

WTI ended higher but well off the highs after OPEC+ hopes faded…

Copper was up today but remains notably decoupled from stocks…

Source: Bloomberg

Finally, in case you hadn’t seen this before – we have shown numerous times in the last few years – the real way to make money in US equity markets is simple – Buy the close and sell the open…