Courtesy of ZeroHedge View original post here.
So there is this…
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Worst social unrest in 50 years (cops killed, cities burning, stores looted nationwide)
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Global Pandemic ongoing (some reopenings but 2nd wave cropping up)
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WHO sees no drug showing any efficacy in reducing mortality (but we rallied for weeks on vaccine hope)
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Economic collapse (no v-shaped recovery in any 'hard' or 'soft' data)
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Earnings plunge (recovery being pushed out)
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US-China tensions increasing
And then there's this – The Dow is up over 1000 points from Sunday night's open…
The Dow was up over 2% today (topping 26k), Trannies 3.5%! (little weakness into the close)…
The Nasdaq 100 topped its all-time closing record today and at this rate, the S&P 500 will be green YTD by the end of the week…
Source: Bloomberg
VIX compressed to a 25 handle but lags the market…
Source: Bloomberg
Because…
Source: Bloomberg
Scott Minerd, chief investment officer at Guggenheim Investments, said in a Bloomberg television interview today that The Fed sent the world a “buy signal” through its programs propping up the corporate bond market, which will force corporations to become even more leveraged.. BUT…
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The Fed’s actions will eventually force it to face a “day of reckoning”
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The Fed will ultimately reduce corporate productivity, and could result in stagflation over the next decade
One word sums it all up…
And as stocks soar, bonds are puked (safe-haven hedges are for pussies)…
Source: Bloomberg
The dollar is dumped…
Source: Bloomberg
The euro hit 12-week highs (up 8 days in a row) are Merkel agreed to stimulus deal…
Source: Bloomberg
And precious metals pummeled (barbarous relics, meh)…
With Gold outperforming silver in the last two days…
Source: Bloomberg
The Treasury curve has steepened significantly…
Source: Bloomberg
After yesterday's battering, cryptos drifted higher today…
Source: Bloomberg
WTI Crude managed to hold gains after a roller-coaster day on OPEC headlines and inventories…
And finally, greed (apparently) is good again!
Valuations are back at record-breaking levels…
Source: Bloomberg
The Put-Call ratio has reached near cycle low levels once again as fear evaporates… and while not an immediate risk catalyst, it has historically not ended well…
Source: Bloomberg