‘Stimmy’ Hangover? Stocks Sink As Fed Flubs, Bond Bull-Market Ends

‘Stimmy’ Hangover? Stocks Sink As Fed Flubs, Bond Bull-Market Ends

Quad-Witch sparked the usual chaotic and volatile day (at the cash open and into the close)… Dow & S&P ended red after an ugly close, Small Caps were best on the day…

…capped a choppy week in stocks that saw the Powell promises spark a brief buying panic midweek…

As the market dealt with the biggest non-January options-expiration ever…

And completely shrugged off Powell’s promises of moar-looseness by tightening: first by bringing the timing of a first rate-hike closer…

Source: Bloomberg

And second by accelerating the rate-hike trajectory expected after that…

Source: Bloomberg

The market to Jay Powell this week…

Banks were biffed today as The Fed caved to political pressure and refused to extend the SPR exemption…

FANG Stocks were unchanged after a volatile week…

Source: Bloomberg

Energy stocks were the worst performing sector on the week as crude crashed…

Source: Bloomberg

This was the worst week for energy stocks since September…

Source: Bloomberg

Hedge funds got hammered in the last couple of days after The Fed panic-bid…

Source: Bloomberg

VIX ended the week lower – despite some chaos…

Treasury yields were higher (and the curve steeper) this week with the belly underperforming…

Source: Bloomberg

30Y Yields are back at their highest since August 2019…

Source: Bloomberg

Real yields jumped this week to their highest since June (though still notably negative)..

Source: Bloomberg

And, perhaps even more notably, the decades long bull market in bonds may have just ended as Bloomberg reports that The Bloomberg Barclays U.S. Long Treasury Total Return Index, which tracks bonds maturing in 10 years or longer, has plunged 22% since its peak in March 2020, putting it in bear-market territory.

Source: Bloomberg

The dollar ended the week unchanged against its fiat peers, after plunging on Powell’s promises…

Source: Bloomberg

Mixed and modest describes the week in crypto land – BTC and ETH managed modest gains as LTC slipped, but they have been relatively stable…

Source: Bloomberg

Bitcoin spiked above $60k this week after The Fed, dropped back… then was bid back up to $59k…

Source: Bloomberg

Oil prices plunged this week, the worst week for WTI since October. The $60 line in the sand continues to hold…

Gold and Silver managed gains on the week with the former holding gains from its bounce off $1700…

Interestingly, we noticed that oil priced in gold had retraced its pandemic losses right before rolling over and plunging this week…

Source: Bloomberg

And that level appears somewhat relevant over time…

Source: Bloomberg

Finally, we note that we have just wintnessed seen the greatest 12 month rally in the S&P 500 since the 1930s… (and all it took was $13 trillion in global liquidity injections)

Source: Bloomberg

Amid the second worst bond bear market in 40 years.

Tyler Durden
Fri, 03/19/2021 – 16:01

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