Bitcoin, Bonds, & Bullion Jump As Dollar Dumps After Dismal Data

Another day, another set of shitty data piles on the “growth scare / recession” narrative and US Macro Surprise index plunges into negative territory, at its weakest since January…

Source: Bloomberg

Following their worst day since 2020, US equities roller-coastered once again, rebounding after overnight weakness in the European session but still whipsawing during the US session. Weakness in the last hour left only Small Caps in the green for the day…

The S&P traded down to its Bear Market trigger level once again and bounced…

There were 3 major swings in buying pressure today…

Source: Bloomberg

Broadly speaking, stocks are en route to their 8th straight weekly drop. Small Caps ramped up to unch on the week today, but faded back…

To get some context, the market capitalization of FANG stocks is now down a stunning $2 trillion from its record highs in Nov 2021…

Source: Bloomberg

VIX fell today after spiking yesterday after VIX-piration at the open. We remind readers that there is a sizable OpEx tomorrow…

Treasuries were bid today led by the short-end (2Y -6bps, 30Y -0.5bps). On the week, only 2Y is higher in yield with 10Y outperforming…

Source: Bloomberg

Yields tumbled on the weak Philly Fed and Jobless Claims and rebounded during the day session…

Source: Bloomberg

The dollar was clubbed like a baby seal today, back near FOMC day spike lows now…

Source: Bloomberg

Bitcoin rebounded dramatically from $29,000 to tag $30,500 at intraday highs today…

Source: Bloomberg

Also of note, Bitcoin decoupled from Nasdaq today…

Source: Bloomberg

As the dollar dumped, gold pumped higher, getting near $1850 intraday, extending gains after its bounce off $1800…

Oil prices rebounded in the afternoon, with front-month WTI back up near $110…

Finally, we note that US equities (cyclicals vs defensives) are now pricing in a dramatic slowdown in growth (ISM Manufacturing ~48)…

Will Powell keep hiking to stem inflation as a recession strikes? That’s why Stagflation is the central bankers’ nemesis.