Trumpnado Sparks Late-Day Lurch Lower In Stocks, Dollar Drops On Dismal Data

Trumpnado Sparks Late-Day Lurch Lower In Stocks, Dollar Drops On Dismal Data

Core Durable Goods miss, Personal Income and Spending miss and drop, UMich Sentiment miss and drop, total jobless claims remains above 20 million, and new home sales miss and drop… all sending hard and soft macro data plunging…

Source: Bloomberg

But stocks were up because, hey, it’s just a fleshwound…

and stimulus…

And so, as all that hope evaporates, “investors” (used in the loosest way) bought Small Cap stocks with both hands and feet, while dumping big-tech at the cash open. Overnight saw stocks tank as Trump spoke on improvements to the COVID Lockdown Relief Bill, but dip-buyers just could not help themselves. Then with around 10 mins to go, the bottom fell out of the market as headlines on Trump’s veto of the defense bill and various Republicans’ response hit…

Semis were clubbed like a baby seal into the close…

Sending Russell 2000 to its highest relative to Nasdaq 100 since March…

Source: Bloomberg

For 7 days straight, a short squeeze has been ignited at some point intraday…

Source: Bloomberg

Bank stocks were bid…

Source: Bloomberg

But energy stocks outperformed…

Source: Bloomberg

VIX was monkeyhammered back below Quad-Witch levels…

Treasuries were dumped today with the long-end yield up around 5bps (and notably steepening). Afternoon gains sent yields back to unch on the week…

Source: Bloomberg

Notably though, 10Y and 30Y were held within their recent range and below election/vaccine spike highs…30Y reversed back below 1.70% for the 9th time…

Source: Bloomberg

The dollar drifted lower today but remains higher on the week…

Source: Bloomberg

Cable jumped on the day amid hope that Brexit talks are nearing completion…

Source: Bloomberg

Bitcoin saw some vol intraday  (dropping below 23k before ripping back above 24k)…

Source: Bloomberg

WTI ripped higher despite weak gasoline demand and mixed crude inventory data…

Gold managed to hold on to its gains today… barely…

Silver similarly managed only modest gains…

Gold/Silver found support at early September lows…

Source: Bloomberg

Meanwhile, there’s no inflation…

Source: Bloomberg

Finally, as real yields plummet back towards record lows, spot gold has some catching up to do…

Source: Bloomberg

Tyler Durden
Wed, 12/23/2020 – 16:00

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