After stocks just saw their best 12-month performance since 1936, it should not be a total surprise that Treasuries have suffered... but the extent of the bond bloodbath is almost unprecedented.
Over the past few months, bonds have had one of their sharpest selloffs in history. This should be no surprise.
At the end of the first week of March which saw an eruption in violent market turbulence in the aftermath of the sharp spike in bond yields and the catastrophic 7Y auction ...
At the time of the month when open interest should be falling, it is rising instead!
It's been a familiar pattern for most of the past year: Newbie investors chasing upside in single stocks as professional money managers position for more trouble. This month, the sentiment gap between these groups has all but disappeared.
Look out, Tesla. There could be another mainstream FOMO electric vehicle stock coming.
The WallStreetBets Reddit forum that skyrocketed in popularity this year amidst the GameStop chaos is now targeting crypto miners.
"The Great Experiment begins" as the $1.9 trillion bucket of lard was passed entirely along partisan lines...
Update (1225ET): GME collapsed after we posted highlighting the craziness again, and is now halted for the first second third fourth time...
The bearish dollar consensus that opened 2021 looks likely to set off a major meltup.
Update (1045ET): While Small Caps remain large and in charge, big-tech was battered back into reality at the cash open (who could have seen that coming? see below) and is now red on the day...
Update (1225ET): GME collapsed after we posted highlighting the craziness again, and is now halted for the first second third fourth time
The greatest truth about markets is it's not what you think you know that matters. It's what other people collectively think they know that counts...
In a world growing increasingly euphoric about the imminent conclusion of the covid pandmic, moments ago Boeing shares also joined in the "reset" party, surging 3% after the company reported its first backlog growth since November 2019.
Sometimes, things don't work out "exactly" as we plan. Such was the case last week, as we had expected a reflexive rally following the selloff previously. As noted in last weekend's newsletter:
Even though the NASDAQ eventually steadied on Friday, with the broader market rallying from a morning drubbing, it was yet another day of pain for Cathie Wood and her ARK ETFs.
"Be careful what you wish for" appears to be the lesson for stock investors this week as recovery and reflation hopes/hypes sent real and nominal rates soaring, triggering trouble in the momo/growthy names that have soared "to the moon" and neither P
Friday's post-European close ramp notwithstanding...
"The CFTC is closely monitoring recent activity in the silver markets. The Commission is communicating with fellow regulators, the exchanges, and stakeholders to address any potential threats to the integrity of the derivatives markets for silver,
Tesla still commands 69% of the market share but shows how Ford's electric SUV is attracting EV buyers who would've bought a Tesla.
Oil sprinted out of the gate after the OPEC+ meeting started following comments from the Saudi Energy Minister who said the oil market has improved but the uncertainty surrounding the recovery has not receded, and urged "supply caution and vigilance
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Our problem, in a Canute shell
Back in mid-December, when stocks were melting up furiously daily amid unprecedented retail euphoria, which would only get crazier and crazier until eventually it forced Citi to use a bigger chart two months later to capture the market's retail eupho
The GameStop saga--can we call it an insurrection?--wants easy heroes and villains. Both are available.
...Crypto Roars Back As Citi Sees Imminent 'Tipping Point' In Global Trade
Hedge Fund Billionaire Stunned At "Market Craziness", Sees "Trouble Ahead"
Update: Into the close, bonds were panic-bid with 10Y Yields plunging 14bps - the best day for bonds since March 2020
A whole host of prominent voices have been warning that volatility and chaos would be returning to Wall Street, and that is precisely what has happened.
As Coinbase nears its debut on the public market, the company's offerings for corporations looking to follow Tesla into adding bitcoin to their balance sheet may prove to be a large part of their business as adoption grows.