Dead Cops, Looted Shops, Cities Burning, Buy Stocks!
Tyler Durden
Tue, 06/02/2020 – 16:00
While we are constantly told that Black Lives Matter, Blue Lives Matter; in fact, truth be told, ALL LIVES MATTER; but, there is one thing that matters more… higher stock market prices…
Trannies led the day… (there was a blip lower around 1030ET when NYC announced its extended curfew – but that was bid) but another major buy on close imbalance sent everything rallying into the close…
Another night of utter carnage across the nation and global pandemic number starting to re-accelerate suggesting a second wave more likely – so of course, buy stocks!
US equity markets played deja vu all over again in the early going with overnight gains fading into pre-open weakness leading to panic-buying shortly after the dump…
The Nasdaq 100 is now 1.2% below its record high…
Treasury yields were higher across the curve, but the long-end steepened most…
Source: Bloomberg
But while stocks have soared, yields have gone nowhere off the lows…
Source: Bloomberg
The dollar continued its slide lower, breaking below its 200DMA…
Source: Bloomberg
Bitcoin puked in one big move today after lurching higher yesterday…
Source: Bloomberg
The rest of the crypto space was also slammed at around 1045ET…
Source: Bloomberg
Oil prices extended their surge with July WTI approaching $37, ready to cross above its 100DMA and fill the February gap…
Source: Bloomberg
Gold was punched back below $1750…
But, for once, silver notably underperformed…
The Gold/Silver ratio rose for the first time in 6 days (and only the 4th time in the last 21 days)…
Source: Bloomberg
And finally, in case you were unclear on just how this farce is occurring…
Source: Bloomberg
As Mohamed El-Erian diplomatically pointed out this morning:
“I understand people who bet on moral hazard. I understand people who bet on The Fed backstop. I don’t do it. I don’t think that’s a good way to invest… I’d rather invest on the basis of fundamentals”
He continued…
“This notion that it doesn’t matter what happens to fundamentals. It doesn’t matter what happens to corporate earnings. It doesn’t matter what happens to economic growth… because The Fed will buy what I want to buy… that’s the mindset of the market right now.”
Trade accordingly.
via ZeroHedge News https://ift.tt/3eMWjZt Tyler Durden