Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

Weird day… but not as weird as this…

It appears that surging bond yields finally spooked stocks enough to carry-through…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

And bears were rescued…

As stocks plunged…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

The Dow is down for the 5th day in a row – the longest losing streak since March 2017.

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

The S&P tested back down towards its 200DMA…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

And The Dow and S&P are back in the red for 2018…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

CAT’s “high water mark” comments crushed it and dragged The Dow down…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

The FANG Index appears to be making an ominous head-and-shoulders pattern…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

FANG-style stocks were all monkey-hammered…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

And FANG bonds were hit…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

Big Bank stocks were a bloodbath…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

But notably Small bank stocks are significantly outerforming the broad small caps market despite the flatness of the curve…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

And as crude started to slide after Macron’s comments, so Breakevens tumbled and they dragged stocks down…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

Despite the stocks slump, the odds of 4 rate-hikes in 2018 (including the one from March) is surging…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

The Treasury market was mixed today… with 30Y Yields jumping

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

But 10Y managed to top 3.00%…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

And the yield curve reversed steeper this afternoon, back to unch on the month…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

The Dollar Index rolled over modestly today…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

And we notes that HKD was weaker, heading back down to its peg band lower limit…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

Cryptocurencies continued their rise from pre-tax-day ashes with Bitcoin Cash leading the day…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

Commodities were mixed with PMs higher (weaker dollar) and WTI lower ahead of tonight’s API data (following Macron’s comments on a new Iran deal)…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

And finally, in case you were wondering why there was no dip-buying, no rescue, no new highs… the answer is simple – no buybacks…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

Bonus Chart: There Is An Alternative… US Treasuries now offer the biggest yield advantage over US stocks since mid-2008

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

Bonus Bonus Chart: Americans are giving up on stocks…

Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

Gluskin Sheff’s David Rosenberg sums it all up nicely:

“I don’t know about anyone else, but I find it humorous that the stock promoters on bubblevision who told us heading into the peak that valuations don’t matter are now talking about how cheap the equity market is!”
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