Tech Wrecks, Ether Erupts, Commodities Crumble As Dollar Gives Up 2021 Gains

That was quite a day. The tech wreck continued, leading the drop in stocks. Commodities did the unthinkable and tumbled on the day but Gold and Cryptos gained as the dollar dumped into the red for the year…

Source: Bloomberg

Dallas Fed’s Kaplan warned that he was “cognizant of excess risk-taking in financial markets”. Maybe turn the taps off then?

💦 Monetary policy since March 2020.. pic.twitter.com/kPgQXol3VJ

— PiQ (@PriapusIQ) May 10, 2021

The Dow topped 35k for the first time ever but was unable to hold gains and ended its win streak at 5 days. The US cash open sparked panic-selling in Small Caps and Big-Tech and they never really looked back. All major indices were hit to the downside around 1415ET (ahead of margin call time). Stocks closed ugly at the lows of the day…

The Dow’s recent dramatic outperformance pushed it above the March highs relative to Nasdaq…

Source: Bloomberg

Nasdaq broke down to its 100DMA…

Small Caps closed below their 50DMA once again…

FANG Stocks continued to slide…

Source: Bloomberg

AMZN dropped 3% as it issued upside $18.5bn debt…

Unprofitable Tech company stocks are are down 17% YTD (and -36% from their February highs)…

Source: Bloomberg

IPOs continue to tumble (as Jessica Alba’s Honest Co crashes)…

Source: Bloomberg

ARKK continues to sink, now at its lowest since mid-Nov 2020…

Despite the carnage in stocks, bonds were also under pressure today (likely due to the major AMZN issue) with the long-end underperforming (30Y +4bps)…