Bonds & Stocks Soar After Dismal Data Dump

After some weakness overnight – after ugly China data (but a PBOC rate-cut) – stocks were met with the now new normal buying-panic of YOLOing at the cash open and never looked back – despite a bloodbath in Empire Manufacturing Sentiment and Homebuilder Confidence. Nasdaq was the day’s winner, Small Caps lagged (but ended green on the day)…

Call volumes continue to rise as retail chased ahead of OpEx…

Source: Bloomberg

Energy stocks puked at the open and lifted back but was the only sector to end the day red…

Source: Bloomberg

Bonds were also bid on the day with the belly outperforming (and the long-end managing modest gains on the day, -1.5bps)…

Source: Bloomberg

The dollar index retraced all of its post-CPI losses…

Source: Bloomberg

Bitcoin ended barely changed on the day after a pump and dump…

Source: Bloomberg

Oil tumbled today with WTI back below $90…

Gold broke below the $1800 level as the dollar rallied…

Finally, all the terrible macro news is great news for easing expectations which have surged in the last two days with yet another rate-cut priced in for next year…

Source: Bloomberg

How much longer can Powell and his pals put up with this level of decoupling from their expectations…

Source: Bloomberg

Not much longer we suspect.