Stocks Dump’n’Pump As Bank Buybacks & Bailouts ‘Crush’ COVID Mutation Concerns

Well that de-escalated quickly…

Futures were pummeled overnight as news of EU lockdowns and travel restrictions grew louder as UK reported a mutant variant of the COVID virus.

But then, as the cash open began, and details of the COVID Relief Bill began to emerge, stocks started to recover and then at 0905ET TSYSec Mnuchin appeared on CNBC, said nothing new at all, but saved the world, triggering RH algos into a buying panic.

Nobody:

Robinhood degenerates when they get that $600: pic.twitter.com/pxDVKXvm9s

— Arbitrage.Andy (@arbitrage_andy) December 21, 2020

Small Caps were the most insane movers on the day, but the Dow outperformed. Nasdaq and the S&P weren’t able to get green on the day and into the last 30 mins, things started to go just a little bit turbo…

The Dow fell 1000 points from overnight highs only to rally back around 800 points before fading into the close…

The Dow was helped by a rip in the big banks (GS and JPM added over 150 points to the index alone), as The Fed allowed banks to buyback their shares again after the Stress Test…

Source: Bloomberg

Financials led the day as energy lagged…

Source: Bloomberg

After the utter chaos of Friday’s last few minutes, TSLA tanked in the pre-market only to be instantly bid back to unch before fading back again and then accelerating lower on headlines about AAPL moving into cars in 2024…

But TSLA vol collapsed…

Source: Bloomberg

VIX also rocketed higher only to collapse…

Treasury yields joined the rollercoaster party. 30Y yields were down over 7bps at their best around 0600ET before ripping back higher…

Source: Bloomberg

The dollar screamed higher overnight only to reverse on a dime at around 0530ET and plunge back to unchish…

Source: Bloomberg

The pound plunged early on (on COVID malarkey) and then exploded back higher on healdines that BoJo would offer some compromise on ‘fish’…

Source: Bloomberg

Bitcoin took a decent tumble overnight (testing below $22k briefly) but rebounded as the day wore on…

Source: Bloomberg

Gold was up overnight (back above $1900) but suffered a similar liquidation plunge around 0500ET before bouncing back, but ended lower…

Silver held on to its gains…

But oil prices were unable to ramp back into the green after rebounding from the overnight carnage…

And Copper was clubbed like a baby seal…

Finally, today’s chaotic moves took some more shine off the greed-is-good crowd, despite the rebound…

Source: Bloomberg