A very quiet day with no FedSpeak and no macro (consumer credit data ‘meh’) ended with stocks higher amid tumbling VIX (who fears the midterms?); bonds, bitcoin, bullion, and black gold all lower.
Futures continued to levitate overnight (despite a weaker open driven by AAPL production headlines). At the US cash open, stocks quickly puked back their gains with Small Caps, Nasdaq, and S&P all going red. Markets oscillated quietly ahead of the midterms, then at around 1345ET – with absolutely no headline catalyst – a wave of buying suddenly hit every US index, lifting everything comfortably green on the day…
The Dow managed to get back into the green from pre-FOMC statement (not pre-Powell puke)…
VIX was sold all day after gapping higher (who needs hedges ahead of elections and CPI)…
The sudden surge in stocks coincided with an aggressive squeeze in the most-shorted stocks…
Source: Bloomberg
And a big buy program flushed through cash equities…
Source: Bloomberg
Treasury yields were sold today but traders said the pressure more driven by a heavy corporate calendar than any macro insights. The long-end underperformed (+7bps)…
Source: Bloomberg
The 10Y Yield rose to test the post-Powell spike highs…
Source: Bloomberg
Rate trajectory expectations were basically unchanged on the day…
Source: Bloomberg
The dollar tumbled for the second day in a row, finding support at one-month lows. This is the biggest 2-day drop since March 2020…
Source: Bloomberg
Brazil’s Real continued to give back its post-Lula-Election short-squeeze gains…
Source: Bloomberg
Friday’s crypto gains have begun to unwind amid FTX/Binance aggro. Bitcoin fell back below $21k…
Source: Bloomberg
Spot Gold went nowhere today despite USD weakness, unable to hold above $1680…
Source: Bloomberg
Oil prices ended lower as hopes of China COVID restrictions easing faded…
Finally, there was one other asset that rallied, NatGas soared on cold weather fears (and pipeline anxiety)…
Winter is coming in the US and it’s going to be expensive (just don’t blame Biden).
Tyler Durden
Mon, 11/07/2022 – 16:00
