Bonds, Big-Tech, Bullion, Bitcoin, & Black Gold All Bid As Dollar & Dimon Dumped

After yesterday’s plunge, it was only fair that US equities would rip higher today, right? As a hotter than expected PPI (are we really listening to freaking Delta’s outlook to drive the entire market?!!) actually shifted post-hike rate-cut expectations lower (hawkish!)…

Market now priced for less than 2 rate-cuts after the 9 rate-hikes this year

The tumble in rates sparked the chaos algos into panic-bid long-duration stocks – Small Caps and Nasdaq dramatically outperformed, S&P and Dow managed solid 1% gains…

And technicals helped as The Dow and S&P rallied back above their 50DMAs…

Banks and Utes were the only sectors red (on sliding rates)

Source: Bloomberg

As JPM was smacked with the ugly stick after earnings, back to one-year lows…

Source: Bloomberg

Bonds extended their gains (yield collapse) today – especially at the short-end (2Y yields are down over 30bps from the Monday highs). The long-end remains higher in yield on the week…

Source: Bloomberg

The rapid about-face in front-end U.S. rate markets that’s seen yields tumble this week has been accompanied by significant block trades in two-year Treasury futures contracts, suggesting that an unwinding of short positions is taking place…

Source: Bloomberg

As Citigroup said,  “fragile liquidity conditions overall continues to drive risk transfer into block structure.” They also underscored that short-positioning over multiple timeframes remains highly extended, albeit “deeply in profit.”

Oil prices soared today with WTI back above $104 – erasing most if not all of the Biden SPR Release drop…

“the greatest SPR release ever in the history of the world”… epic fail:

As @GreekFire reported: “Reports of Russia shutting in oil production at a more rapid rate, down close to 1 million barrels a day. So that’s why you’re seeing a quick $10 rebound, wiping out all of Biden’s release.”

With RUB now back under control again…

Source: Bloomberg

…is Putin readying to drop the hammer?

And the spike in crude means the gains from Biden’s cunning plan to lower gas prices are over…

Source: Bloomberg

US NatGas continued to scream higher (topping $7) to its highest since Jan 2015…

Gold continued to rise (as the dollar dumped today), trading at $1985 today at one-month highs…

Corn futures soared to their highest since Oct 2012…CornPopFlation?

Bitcoin bounced back above $40k (and $41k) in a big rally today (as the correlation continues with mega-cap tech)…

Source: Bloomberg

Finally, is this a 2008 deja vu all over again?

Source: Bloomberg

Do you feel lucky?