Dollar Slump Sparks Surge In Small Caps, Lumber, Copper, Crypto, & Gold

Dollar Slump Sparks Surge In Small Caps, Lumber, Copper, Crypto, & Gold
Tyler Durden
Thu, 12/17/2020 – 16:00

The USDollar is on the verge of breaking down to its lowest in 6 years…

Source: Bloomberg

Pushing lower as The Fed balance sheet surges…

Source: Bloomberg

Is Jay Powell the real Joker?

And as the post-election, post-Nov-Fed, post-Vaccine trend has accelerated losses against its fiat peers…

Source: Bloomberg

And as the dollar dumps, so dollar-based assets surge…

Like Lumber…

Source: Bloomberg

And Copper…

Source: Bloomberg

And Crude…

Source: Bloomberg

And Small Caps…

Source: Bloomberg

And Crypto…

Source: Bloomberg

Gold has been rising too very recently but has not trended as one would expect (stalling at $1900 today)…

Sending the correlation between gold and bitcoin drastically negative…

Source: Bloomberg

Small Caps were today’s biggest winner with this farcical meltup agaoin at the close ahead of quad witch…record closes for S&P, Dow, Small Caps, and Nasdaq

With tech continuing to lead the week and energy lagging…

Source: Bloomberg

Probably nothing…

Source: Bloomberg

And both hard and soft data is starting to collapse as fiscal aid becomes more and more needed…

Source: Bloomberg

Treasuries were all modestly higher on the day (2Y +1bps, 30Y +2bps)…

Source: Bloomberg

Real yields continued to slide, suggesting higher gold prices…

Source: Bloomberg

Finally, faith in the dollar has already been lost as signaled by gold and bitcoin, but now it appears the world is losing faith against its fiat peers too…

Source: Bloomberg

Sell The Rip…

Source: Bloomberg

Shorts continue to get the snot smacked out of them as “most shorted” stocks surged over 2% again today (up 22 days in the last 30 days for the greatest 30-day squeeze in history)…

Source: Bloomberg

And don’t forget, tomorrow is quad witch…

Source: Bloomberg

Override Early Access
On

Share DeepPol