Financial news

Dow Squeezes To Best Day Since 1933, Gold Soars As Dollar Dips

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Via Zerohedge

The day ended with still no Stimulus Bill (the 1100-page plus pork-fest is ‘close’ reportedly), with Italy’s virus-death-count resurgent (dashing optimism that they peaked), no clear indication of when the economy will reopen (despite Trump and Kudlow pushing the narrative), and a total and utter collapse in global PMIs.

So it all makes perfect sense that stocks soared massively today – Dow +11.3% (biggest absolute point gain for The Dow ever)…

…erasing Friday and Monday’s losses…

Futures were limit-up overnight, and extended panic-buy gains – just like last week – at the open and into the close…

For the Dow, this was the best day for The Dow since 1933 (and the heaviest volume ever)

Source: Bloomberg

And here’s what The New York Times said on that day in 1933 – a response after markets were shutdown, massive volume, thanks to President/Congress’ actions, and massive short-squeeze – sounds FAMILIAR!!

Here’s what happened the last time The Dow rallied this much…

Source: Bloomberg

And another huge dead-cat-bounce…

Source: Bloomberg

We’ve seen this before…

Source: Bloomberg

The S&P tested back up to the Dec 2018 lows…

Source: Bloomberg

European stocks explode higher too (Euro Stoxx up 8.4% – the most since Nov 2008) and DAX’s 11% surge is also the biggest since Nov 2008…

Source: Bloomberg

This was the biggest short-squeeze day ever in US markets – with “Most Shorted” stocks soaring 11%!!!

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Source: Bloomberg

HYG and LQD were both higher today…

Source: Bloomberg

But, LQD faded notably despite the largest inflows ever in the last two days…

Bonds and stocks have notably decoupled once again this week…

Source: Bloomberg

Treasury yields were higher today, led by the belly (5Y-10Y +9bps, 30Y +2bps) – but 10Y and 30Y yield are still lower on the week…

Source: Bloomberg

30Y Yields outperformed, rallying from around the time of the ugly PMIs…

Source: Bloomberg

The Dollar suffered its first drop in the last 11 days…

Source: Bloomberg

Cryptos extended their post-QEterntity gains…

Source: Bloomberg

Helped by a weaker dollar, commodities were all broadly higher today (with Precious Metals extended their gains today – silver outperfoming…

Source: Bloomberg

WTI was unable to hold gains above $24 today, ahead of tonight’s API inventory data…

Gold futures soared once again, almost tagging $1700…

And notably decoupling from spot prices…

Source: Bloomberg

Silver is also rallying hard, back above $14…

 

Finally, we hate to burst everyone’s bubble, but this thing is accelerating dramatically…

 

Source: Bloomberg

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