Bitcoin, Bonds, & Bullion Bid As LA’s Extended-Lockdown Slams Stocks

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Bitcoin, Bonds, & Bullion Bid As LA’s Extended-Lockdown Slams Stocks

So the overwhelming message from Fauci today was “we’re all going to die” if you even dare to re-open the economy and judging by the budget deficit charts (and coming a day after Bitcoin’s big event), it would appear that any second wave-driven lockdown will be “The Fuckening” for America… (either Dems block any Republican stimulus; or Republicans have to agree to a 100 trillion bailout of everything…which is precisely why will we get a second wave)

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Which explains why USA sovereign risk remains extremely elevated despite the resurgence in stocks…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Source: Bloomberg

In two words, America is “proper f**ked”…

But, of course, that didn’t stop so-called investors buying Nasdaq…but a combination of a China sanctions bill from the Senate, and a very strong 10Y Bond auction sparked weakness around 1300ET… then stocks really accelerated lower in the last hour…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

…after LA County reported it will extend its stay-at-home order for 3 more months!!

This all spoiled the winning streaks for Nasdaq and AAPL (which was heading for its 7th straight day of >1% gains for the first time since Sept 2000).

The S&P 500 fellback towards 2900 – having gone sideways since April 27th…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

FANG Stocks faltered…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Source: Bloomberg

Banks were battered again…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Source: Bloomberg

Futures show the day’s malarkey best – last night was a geopolitical nightmare (a 2nd wave of infection in Wuhan, China banning Aussie beef, and Trump banning US pension fund investment in China) but that didn’t stop the machines from ramping everything as Europe opened… only for the China sanctions chatter to send stocks lower…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Bitcoin rallied in the 24 hours since The Halvening…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Source: Bloomberg

Bonds were bid…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Source: Bloomberg

Bonds erased yesterday’s losses…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Source: Bloomberg

And gold bullion was bid back above $1700 (futures)…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

After a number of ugly days (amid extremely heavy calendar) LQD (IG Bond ETF) was bid today (spiking at the open) as The Fed said it would be in buying…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Source: Bloomberg

Notably, Fed Speakers were out en masse today to talk down negative rate expectations…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Source: Bloomberg

The Dollar scrambled back to unchanged on the day…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Source: Bloomberg

WTI Crude rallied up to a $26 handle ahead of tonight’s API data…

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

 

So, finally, is it time for stocks to catch down to bonds and commodities?

Bitcoin, Bonds, & Bullion Bid As LA's Extended-Lockdown Slams Stocks

Source: Bloomberg


Tyler Durden

Tue, 05/12/2020 – 16:01


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