Copper, Crude, Crypto, & Credit Clobbered As Stimulus Hopes Fade

“Stimulus On, Stimulus Off”…

$SPX Today… pic.twitter.com/fr1rMIZm82

— Ed ☯️ (@DowdEdward) October 1, 2020

That was the tale of the tape today as markets shrugged off various disappointing economic data and the algos just pumped and dumped on whatever keyword was selected from Pelosi, Meadows, or Mnuchin…From yesterday afternoon’s stimulus optimism highs, The Dow is down and Nasdaq managing to hold some gains…

Personal Incomes unexpectedly tumbled, Manufacturing surveys disappointed, and over 830,000 Americans filed for first time jobless claims last week, and Challenger job cuts screamed higher – probably nothing!

Source: Bloomberg

So layoffs… and stocks… are soaring?

But copper, crude, cryptos, and credit all suffered…

Extreme positioning and growth fears combined to crush Dr.Copper’s economics PhD forecast…

This is the worst single-day drop in copper since March…

Source: Bloomberg

We suspect more than one of these extreme specs got a tap on the shoulder today…

Source: Bloomberg

Crude oil was clubbed like a baby seal, back below $40…

And as goes oil, so goes energy stocks – dumping to fresh six-month lows today…

Bitcoin and its crypto-cousins all plunged today after BitMEX charges…

Source: Bloomberg

Credit markets refused to play along with equity’s exuberance…

Source: Bloomberg

Bonds were bid today, erasing overnight weakness…

Source: Bloomberg

The dollar limped lower for the 4th straight day…

Source: Bloomberg

While crude and copper were clobbered, PMs rallied…

Source: Bloomberg

Gold futures back above $1900…

And Silver futs made it back to $24…

Finally, there’s this – Nasdaq bounced back up to the level of global central bank liquidity…

Source: Bloomberg