Big-Tech Wrecks Short-Shorts In Another Melt-Up, Bonds Shrug
Tyler Durden
Mon, 07/06/2020 – 16:01
A weekend full of scaremongering headlines about soaring COVID cases (though oddly very little mention of the plunge in deaths)…
Source: Bloomberg
Combined with mass shootings across many American cities, didn’t damped the enthusiasm for buying stocks, bigger the better, and more expensive the best… but as the chart below shows, bonds weren’t buying it…
Source: Bloomberg
An oldie but a goodie…
This followed an explosion higher in Chinese stocks (as outflows soared) on officials jawboning retail to invest in stocks… Yes, that is Chinese mega caps up 7% on the day!!
Source: Bloomberg
The S&P up 5 days in a row – the longest streak since Dec 2019… Nasdaq hit a new record high, surging over 2% from Thursday’s close…
Stocks soared in the last few minutes – as they have tended to do recently – pushing The Dow back above its 200DMA…
The market also shrugged off the following headline…
- *FAUCI SAYS ASSUME ANY VACCINE WILL OFFER `FINITE’ PROTECTION
But that wasn’t going to stop the short-shorts getting crushed…
Source: Bloomberg
MAGA stocks soared, with all now back above $1 trillion market cap again…
Source: Bloomberg
AMZN >$3000
TSLA >$1300
Tech valuations are absurd again…
Source: Bloomberg
And then there’s Consumer Discretionary stocks’ valuations…
Source: Bloomberg
Everything was squeezed at the open but defensive were sold back to unchanged as cyclicals held gains…
Source: Bloomberg
Just for some context, from the US Cash open, things diverged quite notably today with Nasdaq panic bid, Small Caps dumped and S&P and Dow flat…
And what that has meant since the start of May – S&P +284pts during overnight session, -22pts during day session…
Treasury yields were around 1bps higher across the curve on the day…
Source: Bloomberg
The dollar slipped lower once again…finding support…
Source: Bloomberg
Cryptos surged higher in the last 24 hours…
Source: Bloomberg
Silver outperformed among the major commodities with WTI flat…
Source: Bloomberg
Gold futures tried (but failed) to regain $1800…
Source: Bloomberg
Finally, this is probably nothing…
Source: Bloomberg