November 8, 2024
Bitcoin Overtakes Berkshire, Gold Dumped Off Record Pump, Bonds & Big-Tech Slump

Another day, another set of shitty data dragged US macro surprise index down to lowest since May...

Source: Bloomberg

And before today's surge in the dollar and bond yields, financial conditions had dramatically eased to their loosest since early August...

Source: Bloomberg

But - the big story of the day was bitcoin and bullion.

Bitcoin ripped back above $42,000 for the first time since April 2022 - erasing all the TerraUSD/3AC crisis losses from last year...

Source: Bloomberg

That pushed Bitcoin's market cap above that of Berkshire Hathaway (as Munger turns over in his grave)...

Source

Gold hit a new (nominal) record high overnight at $2135...

Source: Bloomberg

...but shortly after that the selling began as Benoit was called in...

...within the next 8 hours, spot gold prices had dropped $115 from its intraday highs...

Source: Bloomberg

...that is the 6th biggest absolute $ intraday drop in the history of spot gold trading (9/23/11 & 9/26/11 (SNB intervention as gold soared near $2,000), 04/15/13 (taper tantrum), 3/16/20 (COVID lockdowns), 08/11/20 (vaccines))...

Source: Bloomberg

Bonds dumped most of Friday's pump with yields up across the curve. The short-end underperformed on the day(2Y +11bps, 30Y +4bps)...

Source: Bloomberg

2Y yields are up around 14bps off Friday's lows...

Source: Bloomberg

Huge divergences in equity-land as long-duration (tech) underperformed as yields rose but Small Caps soared (short-squeeze) with The Dow scarmbling to unch on the day and S&P weak...

Unprofitable Tech stocks continue to outperform the Magnificent 7, with the latter now back at support levels seen in the early summer relative to the unprofitable names...

Source: Bloomberg

The dollar ripped higher today (no manipulation of gold of course) for its best day in almost two months...

Source: Bloomberg

Oil prices were lower on the day (as the dollar soared) with WTI finding support around $73 and chopping around there all day...

Finally, after spending July thru Oct starting to recouple with liquidity's reality, US equities exploded divergently in November...

Source: Bloomberg

What happens first - major central bank liquidity expansion... or a crash in stocks?

Tyler Durden Mon, 12/04/2023 - 16:00

Another day, another set of shitty data dragged US macro surprise index down to lowest since May

Source: Bloomberg

And before today’s surge in the dollar and bond yields, financial conditions had dramatically eased to their loosest since early August…

Source: Bloomberg

But – the big story of the day was bitcoin and bullion.

Bitcoin ripped back above $42,000 for the first time since April 2022 – erasing all the TerraUSD/3AC crisis losses from last year…

Source: Bloomberg

That pushed Bitcoin’s market cap above that of Berkshire Hathaway (as Munger turns over in his grave)…

Source

Gold hit a new (nominal) record high overnight at $2135

Source: Bloomberg

…but shortly after that the selling began as Benoit was called in…

…within the next 8 hours, spot gold prices had dropped $115 from its intraday highs…

Source: Bloomberg

…that is the 6th biggest absolute $ intraday drop in the history of spot gold trading (9/23/11 & 9/26/11 (SNB intervention as gold soared near $2,000), 04/15/13 (taper tantrum), 3/16/20 (COVID lockdowns), 08/11/20 (vaccines))…

Source: Bloomberg

Despite the weak data, yields were higher today.

Bonds dumped most of Friday’s pump with yields up across the curve. The short-end underperformed on the day(2Y +11bps, 30Y +4bps)…

Source: Bloomberg

2Y yields are up around 14bps off Friday’s lows…

Source: Bloomberg

Huge divergences in equity-land as long-duration (tech) underperformed as yields rose but Small Caps soared (short-squeeze) with The Dow scarmbling to unch on the day and S&P weak…

Unprofitable Tech stocks continue to outperform the Magnificent 7, with the latter now back at support levels seen in the early summer relative to the unprofitable names…

Source: Bloomberg

The dollar ripped higher today (no manipulation of gold of course) for its best day in almost two months…

Source: Bloomberg

Oil prices were lower on the day (as the dollar soared) with WTI finding support around $73 and chopping around there all day…

Finally, after spending July thru Oct starting to recouple with liquidity’s reality, US equities exploded divergently in November…

Source: Bloomberg

What happens first – major central bank liquidity expansion… or a crash in stocks?

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