Cryptos Crushed, Commodities Crumbled, But ‘Crappy’ Stocks Soared This Week

Cryptos Crushed, Commodities Crumbled, But ‘Crappy’ Stocks Soared This Week

Some notable headlines catalyzed weakness in stocks during today’s US session but Small Caps (Russell) and Big Caps (Dow) outperformed as Big-Tech (Nasdaq) lagged and the S&P went nowhere (weak close as post-opex week looms)…

1015ET *CHINA REITERATES CALL FOR CRACKDOWN ON BITCOIN MINING, TRADING (slamming crypto and pushed the entire stock market lower too)

A crackdown on miners in China would radically reduce the carbon footprint of Bitcoin mining, increase the profitability of all the remaining #Bitcoin miners, reduce nagging China FUD, support progress toward our ESG goals, & drive up the value of $BTC. We should be so lucky… https://t.co/78ELDF9sku

— Michael Saylor (@michael_saylor) May 21, 2021

1205ET *HARKER: SHOULD SPEAK ABOUT REDUCING BOND BUYS SOONER THAN LATER (pushed S&P down to unchanged)

1220ET *BOSTIC: MONITORING ECONOMY TO ASSESS TRANSITORY VS OTHERWISE (thanks Captain Obvious)

1225ET *KAPLAN: SHOULD DISCUSS UNINTENDED EFFECTS OF EMERGENCY TOOLS (little late for that now?)

1225ET *BARKIN: WHEN WE MAKE SUBSTANTIAL FURTHER PROGRESS WE’LL TAPER (yada yada yada)

1250ET *KAPLAN: RATHER GENTLY TAKE FOOT OFF ACCELERATOR THAN BRAKE LATER (so tapering then?)

1345ET *KAPLAN DECLINES TO PUT DATE ON WHEN FED SHOULD START TAPER TALK

1430ET *WHITE HOUSE SAYS INFRASTRUCTURE COUNTEROFFER REDUCES PRICE TAG TO $1.7T (spooked stocks a little)

That’s a lot of marginally hawkish speak considering “officially” they’re not evening thinking about thinking about tapering. Which makes sense given that overnight RRPs are literally exploding…

Source: Bloomberg

Translation – banks are begging The Fed to taper!!

Nasdaq 100 was down 4 straight weeks going into Monday and avoided a 5th straight weekly loss – which would have been the worst streak since 2012. The rest of the majors whipsawed back from big midweek losses to end the week unch to marginally lower…

Unprofitable tech stocks rallied hard this week…

Source: Bloomberg

Tesla suffered its 5th weekly loss in a row – the longest losing streak in 3 years…

And before we leave equity-land, is the great rotation accelerating?

Source: Bloomberg

Cryptos were clubbed like a baby seal this week thanks to a double whammy of repeated news from China…

Source: Bloomberg

Worst week for ETH since March 2020…

Source: Bloomberg

Bitcoin was ugly too, but fell less than the previous week…

Source: Bloomberg

The Bitcoin Proxy stocks were mixed with Coinbase and MicroStrategy the worst hit on the week…

Source: Bloomberg

And everyone’s favorite – DOGE – dumped over 20% this week…

Source: Bloomberg

The alternate currency to crypto… the dollar – ended the week marginally lower amid lots of vol…

Source: Bloomberg

Commodities fell for the 2nd straight week…

Source: Bloomberg

Copper was down for the 2nd straight week – its biggest weekly loss since September…

And the short-end term structure for copper has plunged negative (3m forward prices below spot) for the first time in a year suggesting buyers are finally taking a break…

Source: Bloomberg

Thanks to three limit-up moves from Wednesday’s limit-down lows, Lumber managed gains on the week after last week’s plunge…

Source: Bloomberg

Amid all this turmoil, Treasuries ended the week practically unchanged (long-end modestly outperforming -1bps vs the belly +1bps)…

Source: Bloomberg

Breakevens were all lower on the week…

Source: Bloomberg

Gold rallied for the 3rd week in a row (up 6 of the last 7 weeks) to its highest weekly close since January 1st (decoupling a little from real yields this week)…

Source: Bloomberg

Gold is also now up 7 days in a row (and up 12 of the last 13 days), closing above its 50DMA for the first time since January…

Source: Bloomberg

Oil suffered it first losing week in the last month…

And finally, we note that the US Macro Surprise Index went red for the first time since June 2020…

Source: Bloomberg

The big question is – will ‘inflation’ become the mindset (and what’s cheap if it does)?

Source: Bloomberg

Tyler Durden
Fri, 05/21/2021 – 16:01

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