It seems all the talk about lockdowns has finally triggered more than a few snowflakes as today’s price action had the feel of widespread liquidation with stocks, bonds, commodities, and crypto all being dumped as safe-haven flows sent the dollar soaring…
Statistically, today is the best day of the year for the S&P 500 (which is somewhat offset by the fact that historically, tomorrow is the date when the Great Depression started in 1929), but today was ugly with all the major US equity indices down 3-4% (Nasdaq was the laggard, worst day since Sept 8th – Nasdaq down 9 of last 12 days)…
Stoxx 600 fell to its lowest since May, plunging over 3% today. Merkel’s decision to reinstate lockdowns sparked the worst day for DAX since March…
Source: Bloomberg
Today’s plunge erased all of October’s gains for the S&P, Dow, and Nasdaq (Small Caps remain green)…
The Dow is back at early August lows, crashing almost 1000 points today…Double-Top Much?
So what happens next?
Source: Bloomberg
Bonds are signaling the same…
Source: Bloomberg
All the major US equity indices broke below key technical levels (50-day moving-average) and the S&P broke below its 100DMA
The opening puke was on the back of the 4th biggest sell-program this year…
Source: Bloomberg
Value continues to be dumped in favor of momentum (growth stocks were also liquidated today)…
Source: Bloomberg
FANG stocks slumped today…
Source: Bloomberg
VIX and stocks remain notably decoupled…
Source: Bloomberg
VIX surged above 40, its highest since June…
The VIX term structure surged even more into backwardation after its brief contango around the election…
Source: Bloomberg
Implied Correlation surged once again, flashing a very red flag that traders are preparing for an imminent systemic event…
Source: Bloomberg
Today was ‘different’ as from the open of the cash equity market, bonds and stocks were both sold…
Source: Bloomberg
Which reflexively sparked ugliness in risk-parity-land…
Source: Bloomberg
Bonds & Stocks combined had their worst day since June today…
Source: Bloomberg
Yields were all marginally higher on the day (despite the equity weakness) with the long-end marginally worse than the short-end…
Source: Bloomberg
10Y Yield bounced of 75bps at the US equity cash open…
Source: Bloomberg
Real yields rose notably on the day, weighing on gold…
Source: Bloomberg
And all this liquidation sent the USDollar higher…
Source: Bloomberg
Cryptos were mixed with Bitcoin and Ethereum lower and Bitcoin Cash bid…
Source: Bloomberg
Bitcoin was also liquidated, back below $13000, but bounced back above it in the afternoon…
Source: Bloomberg
The dollar gains (and liquidations) sent commodities reeling with oil crashing (not helped by inventory and demand fears), pushing WTI below $40 (actually briefly trading with a $36 handle)…
Gold clubbed like a baby seal back below $1900…
And silver slammed back under $24…
And finally, the odds of a ‘blue-wave’ continue to slide…
Source: Bloomberg
And the “PCR casedemic” continues to rage but the “deaths”… not so much!
Source: Bloomberg
Probably nothing…
Source: Bloomberg
