Since the election, and the ongoing roll out of Biden’s nominees for economic and policy teams, the dollar has been on a one-way streak lower…
Source: Bloomberg
The dollar is unchanged versus its fiat peers since Jan 2015…
Source: Bloomberg
And it appears the plunge in the dollar is being recognized by gold enthusiasts who bid the barbarous relic back above $1800, erasing last week’s end of month losses…
Interestingly, after recent chatter of a rotation from gold into bitcoin, the two alternative currencies reversed some of that rotation today…
Source: Bloomberg
And as the dollar dumped, so did bonds, with bond yields spiking dramatically…
Source: Bloomberg
Those are some violent moves… but that’s what happens when you “meddle with the primary forces of nature”…
Stocks started December as they did in November – by melting up… but smaller than hoped for stimulus chatter sparked some weakness late on. Nasdaq was the day’s winner and The Dow (and Small Caps) the laggard but all the majors ended green…
Energy stocks smashed higher at the open, but faded back significantly as the day wore on. Industrials lagged on the day as stimulus headlines appeared to disappoint a hungry market…
Source: Bloomberg
And in case you wondered just WTF was going on – it’s simple – a massive engineered short-squeeze! That is a 170% surge off the March lows…
Source: Bloomberg
Treasury yields started to snap higher today around the European open then accelerated around 5amET. After Europe closed, yields largely stopped surging…
Source: Bloomberg
Did Cylicals/Defensives get too far ahead of bond yields?
Source: Bloomberg
Both EU and JP investors can now grab positive yields from buying USTs with a currency hedge…
Source: Bloomberg
Bitcoin traded up to $19,918 intraday before falling back…
Source: Bloomberg
Dollar’s dive today seemed to mirror the gains in Yuan…
Source: Bloomberg
Gold appears to have decoupled from the plunge in real yields…
Source: Bloomberg
While gold and silver rallied, crude lost ground amid OPEC uncertainties…
But copper managed more gains…
Gold’s gains today outweighed Yuan’s rise also, erasing last week’s losses…
Source: Bloomberg
Spot Platinum surged back above $1000 for the first time since August…
Source: Bloomberg
Finally, while the dollar is being dumped broadly speaking, we note that there is a modest dollar shortfall worldwide – nothing to worry about for now – but worth keeping an eye on…
Source: Bloomberg
‘Soft’ survey data is starting to tumble back towards ‘hard’ data reality as hope is fading fast…
Source: Bloomberg
And, as we noted earlier, Citi’s Panic-Euphoria model has reached extremes not seen since the peak of the dotcom bubble…
this is not a good sign: “Current euphoric readings signal a 100% probability of losing money in the coming 12 months if we study historical patterns – indeed, we saw such levels back in early September as well right before a selloff in stocks.”
