Via Zerohedge

Nasdaq stocks soared on the week (second week in a row) as Small Caps and Trannies disappointed…

Sending tech stocks back to dotcom levels of exuberance relative to domestically-focused smaller cap stocks…

Source: Bloomberg

But bonds were not buying it (even as The Fed tapered again)…

Source: Bloomberg

Black gold was not buying it…

Source: Bloomberg

And volume is severely lagging as stocks soar…

Source: Bloomberg

And The Fed has managed to hide the reality of soaring US virus deaths from American markets…

Source: Bloomberg

And the blindfold is global as economic data disappoints and plunges at a record pace while stocks surge higher…

Source: Bloomberg

And as global earnings expectations collapse, stocks are rising too…

Source: Bloomberg

Here’s why this is happening…

Source: Bloomberg

Our put another way…

Europe was mixed  with only DAX managing gains during the holiday-shortened week…

Source: Bloomberg

But all eyes were on the Italian sovereign spread as it blew out…

Source: Bloomberg

Chinese stocks all ended the week higher led by the small-cap, tech-dominated ChiNext index…

Source: Bloomberg

In the US, the big banks were battered (despite gains on Friday)…

Source: Bloomberg

Nasdaq futures plunged back into the red from strong gains overnight… and the last hour saw more complete panic-buying as Small Caps surged back towards their limit-up overnight highs…

Dow futures fought with the 50% retracement line all day…

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Sectors affected directly by the virus or lockdowns largely trod water this week…

Source: Bloomberg

Of course the big story that purportedly sparked the buying panic today was anecdotal news of a small Remdesivir trial’s positive results…

 

Source: Bloomberg

Treasury yields were all lower on the week with the long-end outperforming…

Source: Bloomberg

10Y Yields spiked late on Friday as The Fed tapered its QE program again…

Source: Bloomberg

 

Source: Bloomberg

The Dollar gained on the week, but mainly thanks to the surge on Wednesday…

Source: Bloomberg

Cryptos trod water today to end the week mixed with most altcoins flat, Ethereum best and Bitcoin up just 2%…

Source: Bloomberg

oil prices collapsed like a chocolate fireguard this week as technicals into the contract roll, plunging demand and soaring stocks did not help…The May contract crashed to a $17 handle intraday (dramatically lower than the $25 handle in the June contract)

Copper gained as PMs limped lower…

Source: Bloomberg

Gold spot and futures prices were marginally lower on the week as the premium compressed notably…

Source: Bloomberg

Finally, instead of charts, we offer views from two heavyweights:

DoubleLine’s Jeff Gundlach…

What people in financial media don’t seem to understand is that we are never going back to the January 2020 “You blow dry my hair and I’ll blow dry your hair” economy. Saving money and having a net economically productive skill will be the new cool.

And Guggenheim’s Scott Minerd:

“Investors who are sitting out there right now who rebalanced a few weeks ago and moved from fixed income to equities should probably think about rebalancing again,” he said Friday on a panel.

“The market at this level based upon where earnings are doesn’t represent any kind of intrinsic value,” Minerd said.

“It is being entirely propped up by liquidity.”

“S&P could be 1,500, 1,600, 1,200.”

Ok, ok… one chart… the S&P 500 Fwd P/E is now at 19.47x… its highest since Feb 2002 and well above the peak in Feb 2020…

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Source: Bloomberg