Courtesy of ZeroHedge View original post here.
A regurgitated stimulus narrative,"surprising" rebounds from the depths of hell for some macro data (retail sales, yay! industrial production, boo!), and a press-release study showing a cheap steroid as a 'miracle cure' for COVID were enough to trump soaring COVID case counts in several US states, Beijing locking down 7 regions and shutting all schools, North Korea literally blowing up relations with South Korea, and China and India tensions escalating dramatically.
Why don't we just send the dextramethasone to China – "You're cured mate!"
To 'V' Or not to 'V', you decide…
Source: Bloomberg
The stock market loves it…
Off yesterday's lows, Small Caps are up 10%…
Just wait for earnings to catch up… (in say 2023?)
Source: Bloomberg
The Dow rebounded off its 100DMA to its 50DMA…
Another short-squeeze at the open…
Source: Bloomberg
But while stocks roared higher, bond yields barely flinched…
Source: Bloomberg
Gold was also bid…(not exactly a signal for the all-clear stocks gave)…
The dollar rallied after the better than expected data…
Source: Bloomberg
Oil prices jumped back above $38 on all the "good" news (ahead of tonight's API inventory data)…
Finally, after yesterday's panic-bid in corporate debt after The Fed's nothing-burger statement, things opened up and traded weaker all day today…
Source: Bloomberg
Some context for the stock market's rebound vs the bond market's excitement at the prospects for a 'V'…
Source: Bloomberg
Trade accordingly.