Home Growth ‘Growth’ Gains, ‘Value’ Pains As Yields Plunge, Dollar Jumps, Crude Dumps

‘Growth’ Gains, ‘Value’ Pains As Yields Plunge, Dollar Jumps, Crude Dumps

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As America came back to work after celebrating (are we allowed to say that nowadays) Independence Day, Beijing had a surprise in store with its very visible hand stomping on China tech stocks.

China’s three storms arrive – military threats (Taiwan and South China Sea), geopolitical threats (BRI Funding ‘capture’), financial threats (currency devaluation, overseas investment control, and tech crackdowns)…

DIDI dived below its IPO price…

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And Nasdaq’s Golden Dragon Index continued its crash…

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Source: Bloomberg

That anxiety rolled over into US markets with a heavily-shorted bond market…

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Feeling some serious short-squeeze pain as Services surveys crashed…

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Source: Bloomberg

Smashing 10Y yields back below 1.40% and the lowest since February…

http://feedproxy.google.com/

Source: Bloomberg

And 30Y yields crashed below 2.00%…

http://feedproxy.google.com/

Source: Bloomberg

Pushing the long-end yields down to their lowest levels since February…

http://feedproxy.google.com/

Source: Bloomberg

The plunge in yields sparked more rotation into growth over value…

http://feedproxy.google.com/

Source: Bloomberg

Which prompted a pukefest in Small Caps (and bid for big-tech) at the open. The extent of the selling pulled Nasdaq down but headlines on AMZN/MSFT and JEDI sparked the standard BTFD panic around 1230ET. Small Caps were the wekaest

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The S&P was on a 7-day fresh ATH close streak (which had only happened 5 times in history)… that streak is now over!

Today’s moves erased all of Russell 2000’s gains relative to Nasdaq year-to-date…

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AMZN soared today on the JEDI news and MSFT was weaker…

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VIX went full K2 today, surging higher to almost 18 before crashing back to almost 16 (though did end higher on the day after Friday’s payrolls plunge)…

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The dollar surged as bond yields plunged along with stocks, erasing Friday’s post-payrolls plunge…

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Source: Bloomberg

Cryptos chopped around over the long weekend with Bitcoin rallying up to $36k on Sunday and down to almost $33k yesterday before rebounding today…

http://feedproxy.google.com/

Source: Bloomberg

WTI soared as “no deal” sparked bullish sentiment on no production increase but the anxiety of a broken cartel and prisoner’s dilemma game theory prompted heavy selling pushing WTI back from $77 highs to a $72 handle at the lows…

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Gold has retracted around half of its post-FOMC spike lower, rallying today, despite the surge in the dollar…

http://feedproxy.google.com/

Finally, is it time to buy gold for the seasonals?

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Source: Bloomberg

And ‘soft’ data is finally catching down to the ugly ‘hard’ data…

http://feedproxy.google.com/

Source: Bloomberg

We’re gonna need more stimmies!