Russell Routed, Crude Crashed, Bonds Bid As Bull Market Turns One

Russell Routed, Crude Crashed, Bonds Bid As Bull Market Turns One

“Off the lows” from exactly one year ago, Small Caps are up a stunning 122%…

Source: Bloomberg

As $17 trillion in global liquidity was gushed into “the economy” (by which we mean the shittiest stocks you can think of)…

Source: Bloomberg

But the last two days have been a bloodbath for Small Caps. The S&P is unch, Dow down marginally and Nasdaq up 1.3% (but all were red today)…

Did investors just get over-stuffed with ebulience?

This comes a day after the largest one-day inflow to QQQ since 2000…

Source: Bloomberg

Small Caps plunged back below their 50DMA…

And Nasdaq continues to languish below its 50DMA, unable to break back above it…

Early dip-buyers in Energy just weren’t enough…

Source: Bloomberg

Hedgies got hit hard today as “most shorted” stocks were slammed…

Source: Bloomberg

While VIX picked up today, it remains shockingly decoupled from rate vol…

Source: Bloomberg

The bloodbathery in stocks sparked a bid for bonds (or maybe the causal link goes the other way?) 30Y yields are down over 10bps on the week…

Source: Bloomberg

Pushing 10Y Yields back below 1.65%, the spike lows from last week’s FOMC…

Source: Bloomberg

30Y Breakevens hit their highest since 2014…

Source: Bloomberg

The dollar surged higher today, back to 2 week highs, well above pre-FOMC levels…

Source: Bloomberg

Cryptos were flatish today holding losses for the week…

Source: Bloomberg

Commodities were all sold today as the dollar rallied but copper and crude got hit worst…

Source: Bloomberg

Crude Crashed today as demand fears (European lockdowns) and supply anxiety (floating storage unwinds) slammed WTI back below $60, $59, and $58 to six-week lows (and below its 50DMA) ahead of tonight’s API inventory data…

Finally, we note that the last 12 months were the strongest for the S&P 500 since 1936. Just remember what happened in 1937…

Source: Bloomberg

Trade accordingly.

Tyler Durden
Tue, 03/23/2021 – 16:00

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