“The Great Experiment begins” as the $1.9 trillion bucket of lard was passed entirely along partisan lines…
Today’s gains were also based on the ‘calm’ CPI print (which we noted here was – as BLS admitted – fabricated).
The dollar dumped…
Source: Bloomberg
And alternative currencies rallied with Bitcoin back at record highs…
Source: Bloomberg
Gold gained…
And Big-Caps (The Dow) surged to a record high…
Source: Bloomberg
Dow and small caps outperformed as big-tech was battered after the US cash open (after ridiculously melting up on the CPI print)…
The last few days have been quite a chaotic time in the Dow/Nasdaq relationship…
Source: Bloomberg
Tech valuations are starting to “normalize” relative to the excessive itself market…
Source: Bloomberg
The market opened with yet another short-squeeze but the middayish-ET collapse in WSB trades unwound that craziness…
Source: Bloomberg
GME soared to become Russell 2000’s biggest company before crashing back to earth and worse and then screaming back to unchish…
That – ladies and gentlemen (and others) – is the ‘market’.
⚠️BREAKING:
*HOUSE PASSES $1.9 TRILLION STIMULUS BILL, PRESIDENT BIDEN SET TO SIGN IT BY END OF WEEK pic.twitter.com/Mwf5JQ44Kv
— Investing.com (@Investingcom) March 10, 2021
And it wasn’t just GME that went insane – the entire WSB ‘Heavily-Shorted’ Basket surged almost 20%, then crashed 30% before stabilizing…
Source: Bloomberg
Credit markets caught back down (rallied) to equity risk markets…
Source: Bloomberg
Bonds were aggressively bid today during the US session
Source: Bloomberg
USTs are the most attractive for overseas buyers in six years…
Source: Bloomberg
5Y Breakevens topped 2.50% – the highest since July 2008
Source: Bloomberg
Real yields slipped today, supporting gold…
Source: Bloomberg
Choppy day for oil today amid inventories, stimmies, and Russian production headlines…
Finally, there is one little problem with all this exuberant money-printing/spending inflationary malarkey – as Treasury yields push higher, mortgage rates rise (to six month highs) stifling the housing market as mortgage apps (refis) crash…
Source: Bloomberg
And don’t expect that to improve anytime soon given the massive surge in interest rate risk….
Source: Bloomberg
