Bitcoin, Bonds, Big-Tech, & Bullion Bid On Powell’s ‘Goldilocks’ Testimony

Bitcoin, Bonds, Big-Tech, & Bullion Bid On Powell’s ‘Goldilocks’ Testimony

Who could have seen that coming?

Powell aggressively talked back the Dec Fed meeting’s initial hawkish market take. He will do the same today in the Senate after last week’s minutes

— zerohedge (@zerohedge) January 11, 2022

As we suspected, Powell’s hearing delivered a not-too-hot, not-too-cold, just right temperature mix of virtue-signaling and monetary policy promises, which sparked a bid in stocks, bonds, gold, and sent the dollar lower…

Source: Bloomberg

And crypto was also suddenly bid…

Source: Bloomberg

So traders BTFD ahead of the ‘news’ yesterday and BTFD on the ‘news’ today. Nasdaq was the big gainer and The Dow made it back to unchanged…

Because…

And we just are not ready for this kind of pain yet!!

As shorts were squeezed yet again…

Source: Bloomberg

Cyclicals continued their charged higher from yesterday’s puke open. Defensives opened weak today but were bid back to unch by the close…

Source: Bloomberg

Treasuries were broadly dumped overnight and then bid during the US day session (particularly during Powell’s hearing), helped by a solid 3Y auction with the entire curve around 1bps lower in yield on the day…

Source: Bloomberg

The dollar was sold during the Powell hearing, dragging the greenback into the red against its fiat friends for the year…

Source: Bloomberg

Bitcoin spiked back above $43k…

Source: Bloomberg

And Ethereum broke back above $3200…

Source: Bloomberg

Gold spiked back above $1820 today…

WTI Crude ripped back above $81, back above pre-Omicron and pre-SPR-release levels…

 

Finally, in case you needed some more clarification on what exactly is happening…

Market Summary:

Stocks: “I don’t think you’re going to hike three times and do QT.”

Fed: “if you don’t go lower we will.”

Stocks: “well if you do that then we will go lower.”

Fed: “well if you go lower then we won’t do it.”

Stocks: “so then why should I go lower now?”

— GreekFire23 (@GreekFire23) January 11, 2022

Sigh…

Hawk, Dove, or Chicken?

Tyler Durden
Tue, 01/11/2022 – 16:00

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