Teslammed!

Teslammed!

Tesla was twatted today (-12%, the worst day since Sept 2020)… with no immediate catalysts for the carnage. TSLA is almost back below the $1 trillion market cap level…

And we note that demand for TSLA puts exploded higher relative to calls (late-October to early November’s panic-chase-bid for TSLA calls has reversed)…

Source: Bloomberg

This in turn sent FAAMG-T stocks tumbling, almost erasing all the November gains…

Source: Bloomberg

The reaction from the rabble was clear: “we want more” (very similar to Biden’s pleading with OPEC)…

The Tesla tumble dragged down the entire stock market and none of them recovered on the day with Nasdaq the slight laggard. The first down-day for the S&P in 9 days and first down day for Nasdaq in 12 days…

The S&P’s decline today ended its longest consecutive all time high streak since 1997. S&P was also up 17 out of the last 19 days before today (which hadn’t happened since December 1971).

Defensives managed modest gains today as cyclicals skidded…

Source: Bloomberg

“Most Shorted” stocks saw their first losing day in 9 days…

Source: Bloomberg

VIX on the rise again (back above 18.5 today) as Nasdaq’s “VIX” has started to recouple with bond market vol…

Source: Bloomberg

S&P traders appear to have been shifting to demanding more downside protection as Small Cap traders have been chasing upside with levered longs…

Source: Bloomberg

Treasury yields tumbled across the curve today, led by a strong-outperformance at the long-end (2Y -3bps, 30Y -6bps). The initial leg down in yields was after the record high PPI print…

Source: Bloomberg

30Y yields plunged to their lowest since July (dropping below September’s FOMC lows)…

Source: Bloomberg

2s30s yield curve flattest since Nov 2020, screaming policy error imminent…

Source: Bloomberg

Real yields hit a new record low today, supporting higher gold prices…

Source: Bloomberg

And suggesting Small Caps (value) should significantly underperform Nasdaq (growth) in the short-term…

Source: Bloomberg

The dollar chopped around today, wavering either side of the lows from FOMC Taper day…

Source: Bloomberg

Crypto saw a strong bid with both BTC and ETH hitting new record highs intraday (Over $68,000 and $4800 respectively before fading some in the afternoon amid stock/TSLA weakness…

Source: Bloomberg

Gold extended its recent gains, topping $1830 today…

Oil prices rallied today with WTI above $84 (up for 3 straight days)…

Some analysts pointed out that talk of a potential release of crude from the U.S. Strategic Petroleum Reserve highlights a shortage of crude supplies.

An SPR release would be a “short-term measure at best,” since any inventory drawn from the reserve would have to eventually be replenished, Manish Raj, chief financial officer at Velandera Energy Partners, told MarketWatch. Oil prices may even rise in response to an SPR release, he said, as the move “will be seen as a desperate attempt that highlights the acute shortage of oil.”

Copper has once again shown itself as the worst economist ever relative to gold as for the third time in six months it sent a false signal of growth-flation and then gave it all up…

Source: Bloomberg

Finally, if there one sentence that sums up this market, it is this:

h/t @MrMBrown

You can’t make this shit up!!

Tyler Durden
Tue, 11/09/2021 – 16:01

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