Stimmy Vote Sinks Dollar, Bids Bitcoin & Big-Caps To Record Highs

Stimmy Vote Sinks Dollar, Bids Bitcoin & Big-Caps To Record Highs

“The Great Experiment begins” as the $1.9 trillion bucket of lard was passed entirely along partisan lines…

Today’s gains were also based on the ‘calm’ CPI print (which we noted here was – as BLS admitted – fabricated).

The dollar dumped…

Source: Bloomberg

And alternative currencies rallied with Bitcoin back at record highs…

Source: Bloomberg

Gold gained…

And Big-Caps (The Dow) surged to a record high…

Source: Bloomberg

Dow and small caps outperformed as big-tech was battered after the US cash open (after ridiculously melting up on the CPI print)…

The last few days have been quite a chaotic time in the Dow/Nasdaq relationship…

Source: Bloomberg

Tech valuations are starting to “normalize” relative to the excessive itself market…

Source: Bloomberg

The market opened with yet another short-squeeze but the middayish-ET collapse in WSB trades unwound that craziness…

Source: Bloomberg

GME soared to become Russell 2000’s biggest company before crashing back to earth and worse and then screaming back to unchish…

That – ladies and gentlemen (and others) – is the ‘market’.

And it wasn’t just GME that went insane – the entire WSB ‘Heavily-Shorted’ Basket surged almost 20%, then crashed 30% before stabilizing…

Source: Bloomberg

Credit markets caught back down (rallied) to equity risk markets…

Source: Bloomberg

Bonds were aggressively bid today during the US session

Source: Bloomberg

USTs are the most attractive for overseas buyers in six years…

Source: Bloomberg

5Y Breakevens topped 2.50% – the highest since July 2008

Source: Bloomberg

Real yields slipped today, supporting gold…

Source: Bloomberg

Choppy day for oil today amid inventories, stimmies, and Russian production headlines…

 

Finally, there is one little problem with all this exuberant money-printing/spending inflationary malarkey – as Treasury yields push higher, mortgage rates rise (to six month highs) stifling the housing market as mortgage apps (refis) crash…

Source: Bloomberg

And don’t expect that to improve anytime soon given the massive surge in interest rate risk….

Source: Bloomberg

Tyler Durden
Wed, 03/10/2021 – 16:00

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