Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Tyler Durden

Tue, 10/27/2020 – 16:00

Mixed bag in stocks today (mega-tech bid, rest of market offered) but Bitcoin grabbed the headlines as it overtook Nasdaq’s performance in the last 12 months…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

And longer-term, it’s not TSLA…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

Nasdaq outperformed and the machines tried desperately to get the S&P green on the day. Small Caps and The Dow lagged…(NOTE, everything slid into the close after Trump said “Your 401(k)s, down the tubes. Look how great our stock market – – had a little blip yesterday because Nancy Pelosi will not approve stimulus, that’s all,”)

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Nasdaq manage to hold its bounce above the 50DMA but S&P and The Dow did not…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

As we noted earlier, we have seen persistent “large lot” selling and “small lot” dip-buying…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Will everyone follow each other’s tracks down too?

Europe was ugly again today as lockdown threats escalated (no bounce)…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

YTD, China (SHCOMP) still leads the US (Nasdaq is outperforming but S&P seems more appropriate) as Europe (DAX) dumps…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

Nasdaq surged relative to Small Caps once again…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Momentum continued to rebound as Value lagged…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

Some rotation today with value dumped as growth rebounded modestly…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

Semis were marginally lower on the day after the AMD/XLNX deal…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

Bank stocks sank again today…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

FANG stocks erased yesterday’s losses…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

Meanwhile, HOG had its best day ever as the machines ran the stops to the pre-COVID levels…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

VIX was higher on the day, signaling more pain to come for stocks…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

Bond yields fell for the 3rd day in a row with the curve flattening significantly (2Y -0.5bps, 30Y -11bps)…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

With 10Y back to 76bps intraday…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

Real Yields tumbled back in line with gold today…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

The dollar leaked lower today…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

Cryptos were mixed today with Bitcoin leading, now up over 20% in the last 10 days…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

Bitcoin surged above $13,500, its highest close since Jan 2018…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

Oil prices rebounded from yesterday’s weakness but WTI failed to get back to $40 ahead of tonight’s API inventory data…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Gold futures rallied off $1900…

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

 

Finally, we note that implied correlation is on the rise suggesting investors are piling into protective macro overlays ahead of the election (as opposed to individual stock hedging), expecting a systemic re-rating of stocks

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids

Source: Bloomberg

Bitcoin Outperforms Nasdaq Over Last 12 Months, Bonds Bid As Dollar Skids


Continue Reading

HEDGE accordingly