Stocks & Bonds Surge To Record Post-Election Gain

While uncertainty reigns over who will reside in The White House for the next four years, one thing was definitively decided last night, the ‘blue-wave’ crashed and burned…

Source:Bloomberg

Which for many “pollsters” and “experts” was inconceivable a week ago…

And in response, assuming a Biden win and deflationary impulse, stocks and bonds were panic-bid (Nasdaq up a stunning 5% and TSY yields down a shocking 10-15bps)…

Source:Bloomberg

Which is the biggest post-election-day rally for the S&P in history…

Nasdaq was today’s biggest winner however as growth mega-tech was aggressively, and value-heavy Small Caps lagged notably…

The Dow managed to bounce off its 200DMA all the way back above its 50DMA, but this afternoon’s weakness was it battle to keep that…

Bank stocks were battered (especially regional banks) as rates collapsed…

Source:Bloomberg

Growth stocks soared relative to value today…

Source:Bloomberg

In fact it was the worst day for value relative to growth since 2001…

Source:Bloomberg

VIX crashed from over 41 to below 30…

 

Bonds were also well bid today with yields collapsing at the long-end…

Source:Bloomberg

30Y yields fell over 25bps from their overnight highs!!

Source:Bloomberg

That crash in yields pushed them down to critical technical level at 50/200DMA…

Source:Bloomberg

This was the best day for a combined bond/stock book since early April…

Source:Bloomberg

The Dollar’s moves were extreme to say the least…

Source:Bloomberg

The offshore yuan was even more extreme, crashing when Trump’s odds picked up and then exploding higher as Biden’s odds recovered…

Source:Bloomberg

Bitcoin was also bid, topping $14,200 intraday, its highest since Jan 2018…

Source:Bloomberg

Gold futures scrambled back above $1900 after a volatile 12 hours…

 

WTI managed to surge back up to $39…

 

Finally, systemic risk is starting to be lifted as implied correlation drops…

Source:Bloomberg