It is the 25th of June 2019

Bonds & Bitcoin Bid As Stocks & Commodities Skid

Weaker than expected CPI - more room for The Fed to ease right? So why didn't stocks rally as we've been trained they would?

 

After two days of melting-up, Chinese stocks took a breather overnight...

 

European stocks were lower on the day with Spain still worst on the week...

 

In the US, Trannies  (best) and Small Caps (barely green) outperformed, Nasdaq was the day's biggest loser (hurt by FB among others) as The Dow and S&P hovered just in the red all day...

 

Today seemed all about Dow 26,000 - as the market just could not stop testing it up and down...

NOTE - critically that 26k level also coincides with the 50DMA.

 

Futures show the crazy spike that occurred at the open, suggesting options books needed squaring dramatically

 

Zuck'd...

 

Has Elon lost his touch?

 

Stocks are slowly catching down to VIX...

 

Bonds and stocks remain in different world...

 

Treasury yields were generally lower but the long-end notably underperformed (30Y unch, 2Y -4.5bps)

 

The Dollar rallied today, helped by cable weakness (no-deal Brexit) and euro weakness (Nordstream 2 sanctions threats)...

NOT - the dollar is now higher on the week, marginally.

Cable slipped on the no-deal Brexit no-vote...

 

And the euro slipped on Trump's threats over sanctions...

 

Cryptos drifted higher (but Litecoin dropped notably intraday after a spike)...

 

Bitcoin back above $8,000...

Additionally, Ethereum back above $250...

 

Precious Metals shrugged off dollar strength but copper and crude slipped lower...

 

WTI tumbled back to the lowest levels for crude since early Jan (a $50 handle)...

 

As the price of oil slips relative to gold, we see a potential replay of 2014-2016's shift from hope to nope in the global economy...

 

Finally, we note that the late-day leg lower in stocks and crude seemed to coincide with Chinese media's warning that "Beijing is preparing for China-US ties getting further worsening."

And perhaps more notably, Bloomberg's David Wilson points out that commodities are trading at the lowest prices relative to U.S. stocks in half a century or more as a bear market persists.

The ratio between the S&P/GSCI Total Return Index and the S&P 500 Index dropped Monday to its lowest level since calculations of the commodity gauge begin in 1970, according to data compiled by Bloomberg. Since peaking in July 2008, the ratio has plunged as much as 91%, including a 6.2% decline for the year through Monday. This year’s slump follows losses in 10 of the past 11 years. The exception was 2016, when the S&P/GSCI -- based on 24 commodity futures -- rose 1.7% in relative terms.

And if you are still wondering what has been driving stocks higher in the last week or so - it's simple - money-printing as the global economy collapses...

Welcome to the new normal of the financialization of the global economy.

==> Source: https://www.zerohedge.com/s3/files/inline-images/bfm97AE.jpg?itok=khNvV3dM

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