Momentum Massacre Trounces Tech Stocks; Bonds Drop, Bullion Pops
Since the Pfizer vaccine headlines hit, markets have gone just a little bit slightly turbo with Small Caps up over 4% and Mega-Cap tech down almost 6%…
But don’t overdose on all that exuberance…
Nasdaq found support at its Zero Gamma level once again…
This is the biggest two-day surge in value over growth in history…
Source: Bloomberg
The rotation from growth to value is nowhere more evident than in Small Caps vs Mega-Tech…
This is the biggest 2 day outperformance of the Russell 2000 over the Nasdaq 100 since March 2001…
Source: Bloomberg
Momentum’s collapse continues – the biggest 2-day crash in history…
Source: Bloomberg
With yet another massive reversal in the momo/value trade…
Source: Bloomberg
FANG Stocks continued their slide…
Source: Bloomberg
Credit and equity protection costs both tumbled but VIX (equity) remains notably decoupled from credit risk…
Source: Bloomberg
Treasury yields were once again higher on the day (long-end up around 5bps)…
Source: Bloomberg
30Y yields stalled once again around the same level as the election-night peak…
Source: Bloomberg
The yield curve (2s30s) steepened to its highest since May 2017…
Source: Bloomberg
But we note that, for now, yields are not following the correlation regime with value/momo that has been in place for months…
Source: Bloomberg
The dollar shrugged today, going nowhere…
Source: Bloomberg
Cryptos drifted very modestly lower today…
Source: Bloomberg
Gold futures managed gains today but was unable to reach $1900…
Silver futures managed gains…
WTI pushed back above $41 ahead of tonight’s API inventory data…
Finally, as we noted earlier, stocks are at their most expensive relative to bonds in two years…
Source: Bloomberg
TINA is dead… but not from COVID…
Source: Bloomberg