Stocks & Bonds Dumped-n-Pumped As Powell Promises ‘Moar’

Stocks & Bonds Dumped-n-Pumped As Powell Promises ‘Moar’

Another day, another chaotic roller-coaster in the thing we call a stock market as Powell’s incessant promises of “moar” of “whatever it takes” is all that’s needed now…

And Bonds followed a similar path… puking into the open, then aggressively bid as Powell plugged more holes with his bond-buying bonanza…

Source: Bloomberg

“…either they buy… or fucking die…”

Small Caps were the big winners on the day as Nasdaq lagged (but everything was panic bid after the initial dump)…

Interestingly there was a lot of chatter on Cathie Wood buying TSLA in size yesterday, but despite the machines’ best efforts, ARKK ended lower again…

Beginning at around 0800ET, bonds and stocks were both dumped hard, but as Powell began his semi-annual testimony around 1000ET, bonds and stocks were both simultaneously bid…

Source: Bloomberg

All of which has the smell of some serious activity in Risk-Parity funds, and we see echoes of this…

Source: Bloomberg

Meanwhile, GME exploded higher today..

AMC also rose as the original WSB Short-Squeeze basket surged after an ugly two days…

Source: Bloomberg

Momentum was mashed again today

Source: Bloomberg

It was an ugly day for bonds overall, but could have been seriously uglier…’

Source: Bloomberg

30Y Real Yields jumped to its highest since March, taking out the June spike…

Source: Bloomberg

The UST cash 5s30s curve has now retraced 50% of its entire flattening since 2010 – bottoming at the flats / lows made July 2018 at 19.9bps, and now having steepened up to 166.8bps this morning as the entire curve cheapens and impulse bear-steepens…

Source: Bloomberg

The dollar pumped-n-dumped, mirroring stocks and bonds…

Source: Bloomberg

WTI continued its charge higher, breaking above $63 despite a surprise build in crude and gasoline…

Gold clung to $1800…

Bitcoin bounced back above $50k on Square’s headlines but was unable to hold it…

Source: Bloomberg

Finally, after suffering its biggest outflow on record yesterday (and biggest dollar volume day ever), the big question on everyone’s lips is ‘What Will Cathie Wood Do?’

Source: Bloomberg

And we note that the skew in 10Y Bond Futs is extremely bearish… the last time it was this bearish sparked a rebound in bond prices (tumble in yields from 2.65% to 2.00%)

Source: Bloomberg

Tyler Durden
Wed, 02/24/2021 – 16:00

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