Courtesy of ZeroHedge View original post here.
Ugly retail sales and dismal industrial production capped a gravely disappointing week for US macro data, tumbling into the red for the first time in 3 months…
Source: Bloomberg
As four GDP-tracking estimates came down an average 0.43-pp between last Friday and today.
And by the end of the week, stocks had pushed to record highs and Treasury yields had collapsed to two-week lows (an implied 500-Dow-point divergence)…
Source: Bloomberg
How will that end?
Dow led on the week as multiple “trade deal is close” comments juiced the markets again and again (Trannies lagged)…
Source: Bloomberg
Chinese stocks were ugly this week…
Source: Bloomberg
European stocks were more mixed with Spain lower and the rest marginally higher…
Source: Bloomberg
The US equity market open appears to be a very bullish event…
Vol was crushed at the close to force The Dow to close above 28,000 for the first time…
In the US, defensives dominated the market gains…
Source: Bloomberg
Healthcare surged to new record highs on President Trump’s statement…
Source: Bloomberg
Short squeeze after short squeeze were ignited this week on the heels of various “trade deal is close” bullshit headlines…
Source: Bloomberg
The S&P is now at its most overbought since late April…
Source: Bloomberg
Buybacks continue to dominate…
Source: Bloomberg
VIX continued its collapse this week…
..crashing to an 11 handle…
…and sending the term structure to its steepest since just before the VIXmageddon as XIV imploded…
Source: Bloomberg
But that doesn’t stop the world and their pet rabbit shorting vol – to yet another new record short (5th week in a row)…
Source: Bloomberg
Credit markets continue to decouple from stocks…
Source: Bloomberg
Especially in CLO-land…
Source: Bloomberg
Treasury yields all tumbled on the week with the short-end underperforming…
Source: Bloomberg
This was the biggest weekly yield compression since September…
Source: Bloomberg
The Dollar ended the week lower (with the last two days saw the biggest drop in a month)
Source: Bloomberg
Yuan ended the week marginally lower (but rebounding back above the Yuan fix overnight)…
Source: Bloomberg
Cryptos all drifted lower this week after a big surge last weekend…
Source: Bloomberg
Gold and Silver both rallied this week while copper dropped (and crude played insane ping pong on trade/OPEC headlines)…
Source: Bloomberg
WTI continues to swing between rails in a tight range…
Notably, precious metals rallied this week amid the biggest outflows since Dec 2016…
And finally, amid all the political circus this week, President Trump’s approval rating surged to a 5-week high…
Source: Bloomberg
And in case you wondered why stocks just keep rising despite dismal earnings and deteriorating macro data…
Source: Bloomberg
It’s simple – the Fed is expanding its balance sheet at the fastest pace since the very peak of QE3 money-printing…
Source: Bloomberg