Vaccine Hype Redux Sparks Another Big-Tech Buying-Panic, Gold Dumped

Ok, so this is what happened today…

• 0742ET PFIZER CSO SAYS COVID VACCINE IS `VERY PROMISING’

• 0815ET ADP Job growth slows (massive revisions)

• 1000ET ISM jumps into expansion (biggest jump ever)

• 1110ET ARIZONA REPORTS RECORD ONE-DAY INCREASE IN VIRUS CASES

• 1240ET U.S. READIES GLOBAL SANCTIONS ON CHINA OVER XINJIANG ABUSES

• 1310ET HOUSTON-AREA ICUS REACH 102% OF CAPACITY: TEXAS MEDICAL CENTER

• 1400ET FOMC MINUTES – No YCC, More QE (But it may not work), Stocks only up on hope

• 1420ET GOV NEWSOM ORDERS LA COUNTY RESTAURANTS CLOSED FOR 3 WKS: EATER

• 1425ET APPLE RE-CLOSING 30 MORE STORES THURSDAY: CNBC

• 1510ET CALIFORNIA CLOSES INDOOR DINING IN 19 COUNTIES, INCLUDING L.A.

And the result of all that… Nasdaq soared to new record highs, Small Caps were dumped and the Dow unch…until the last 10 minutes…

As every RH’er desperately searches for the next dip to buy…

FANG stocks soared on this first day of Q3…

Source: Bloomberg

TSLA topped $200bn and became the world’s largest carmaker by market cap…

Source: Bloomberg

Bank stocks underperformed despite a modest steepening of the yield curve…

Source: Bloomberg

Notable reversal in value/momentum today…

Source: Bloomberg

Despite stocks gains, credit ain’t buying it…

Source: Bloomberg

Treasury yields were marginally higher on the day (up around 2bps across the curve) but on the week 2Y remins flat while the long-end is up 6bps…

Source: Bloomberg

The 10Y topped 70bps briefly but did not hold it…

Source: Bloomberg

The USDollar was lower today, extending yesterday’s losses…

Source: Bloomberg

Bitcoin and Ethereum pushed higher on the day, back in the green on the week…

Source: Bloomberg

Gold was slammed lower on the vaccine news, running stops back below $1800…

WTI ended higher on the day, after last night’s API inventory draw but chopped around after the DOE inventory data (but ended back below $40)…

 

Finally, as we start H2 of 2020, the question is – will this divergence recouple? And if so, will it be stocks or bonds that are sold?

Source: Bloomberg