Stocks & Dollar Surge On Trump Transcript, Trade Talk; Bonds, Bitcoin, & Bullion Battered

Between Trump’s Ukraine transcript turmoil and numerous optimistic Trump trade-talks headlines sprinkled throughout the day, US stocks and the dollar were bid almost non-stop and as the flight to the dollar escalated, safe-havens were dumped.

Stocks up, Bonds down, Dollar up – all of which can only mean one thing:

But – relatively speaking – stocks lagged…

Source: Bloomberg

These were the headlines that US equity algos loved the most today…

• 1000ET *TRUMP ADMIN. RELEASES ROUGH TRANSCRIPT OF CALL WITH UKRAINE

• 1100ET *TRUMP SAYS CHINA DEAL COULD HAPPEN SOONER THAN YOU THINK

• 1300ET *TRUMP ON CHINA DEAL: WE ARE GETTING CLOSER AND CLOSER

• 1435ET *ZELENSKIY SAYS NOBODY PUSHED ME

And thus all the US majors rallied notably on the day…

But despite the big surge, late-day weakness left only The Dow is green on the week…

On a closing basis, the S&P 500 had traded in a 0.59% range over the last 9 sessions, the tightest such range in just over a year.

Treasury yields soared as bond safe havens were dumped…

Source: Bloomberg

The Dollar exploded higher today (biggest daily jump since August 2018)…

Source: Bloomberg

Bitcoin extended losses after yesterday’s carnage…

Source: Bloomberg

And gold (and silver) were clubbed like baby seals today…

Source: Bloomberg

Under the hood, The Fed’s POMO was way oversubscribed and decided to increase its liquidity going forward – does that sound healthy?

In equities, momo was battered, reversing yesterday’s gains…

Source: Bloomberg

Chinese stocks gave up yesterday’s gains overnight…

Source: Bloomberg

European stocks were also down today – unable to use the US gains to get back to even…

Source: Bloomberg

30Y yields pushed back higher on the week…

Source: Bloomberg

Carnage in crypto this week…

Source: Bloomberg

Copper managed an odd gain today – back into the green for the week -as PMs and crude ended red…

Source: Bloomberg

Bloomberg’s Justina Vasquez notes that investors piled into gold, pushing the tally of outstanding futures contracts to a record Tuesday before renewed optimism on trade sent prices tumbling the next day for the first time in four sessions. Money will likely return to the precious metal as the impeachment inquiry of President Donald Trump adds another layer of uncertainty to a long list of concerns that have boosted haven demand for bullion, according to George Gero, a managing director at RBC Wealth Management in New York.

Source: Bloomberg

WTI tested down to a $55 handle intraday before bouncing but has erased almost 90% of the Saudi spike…

Source: Bloomberg

Finally, we note that despite the equity market exuberance today, the odds of a Trump impeachment before the end of his first term surged…

Source: PredictIt

And don’t forget, Greed is back bitches!!

Source: CNN