Dollar Slumps, Small Caps Dump, Oil Pumped

Today’s stock action was dominated by a dramatic shift in Small Caps vs mega-cap tech as the US Cash open sparked a puke in the former and a panic-bid in the latter…but that all snapped when President Trump confirmed a China news conference tomorrow and commented in more detail on his intent to crack down on social media giants…

A serious shift in the recent regime…

Source: Bloomberg

Sell Small Caps Mortimer, Sell!…

On the week, Trannies are still best and Nasdaq the laggard…

 

Internet stocks v-shaped-recovered from yesterday’s opening drop…

 

FANG Stocks surged…

Source: Bloomberg

TWTR took a beating in the pre-open but was panic-bid as cash markets roused…

Treasury yields were mixed once again in a narrow range relative to stocks’ chaos (30Y +3bps, 2Y -1bps)

Source: Bloomberg

Steepening the yield curve back near the highest since Oct 2017…

Source: Bloomberg

The Dollar continued its recent demise to two-month lows…

Source: Bloomberg

…tumbling back below a key technical level (100DMA)…

Source: Bloomberg

Which helped lift oil prices (despite a huge crude build)

But the dollar doldrums didn’t help gold…

And silver outperformed again, pushing its ratio to gold lower still…

Source: Bloomberg

Bitcoin rallied further (chatter of Hong Kong capital flight)…

Source: Bloomberg

Hong Kong Dollar forwards are pricing in a serious devaluation in the currency (capital flight)…

Source: Bloomberg

Finally, we note that the chaos under the surface continues in quant-factor-land, with momentum underperforming value by the most since September…

Source: Bloomberg

As the recent surge in momo relative to value catches down to bond market reality…

Source: Bloomberg

Turn The Machines back on!!