It is the 20th of January 2019

BTFDove - Stocks Extend Best Run In 10 Years Off Mnuchin Massacre Lows

Slumping macro data, tumbling earnings expectations, and "substantial" Fed balance sheet run off to come, that explains why stocks at near-record levels of extension in the last few weeks...

Of course the algos had plenty to chew on still - Powell BTFDove, China RRR Cut, Trade talk optimism, Mnuchin calls PPT, and Saudis scramble to boost oil higher

 

Big week for China stocks but it was all dominated by Wednesday morning's rescue bid...

 

Italy was Europe's outperformer on the week...

 

US Equity markets stalled today but once again that dip was bought...

...and extended the post-Mnuchin Massacre buying frenzy...

That is the greatest 12-day rally for the S&P since July 2009...

 

On the week, Small Caps surged almost 5% - its best week since Dec 2016...

 

Biotechs are back in a bull market - soaring over 22% from the Xmas Eve lows...

 

FANG Stocks are up over 26% from the Mnuchin Massacre lows...

 

Banks have bounced back but not as much as the high-momo sectors above...

 

And everything was looking awesome for department stores and retailers until yesterday...

 

The VIX Index has fallen from the open to the close for 12 consecutive sessions. (h/t @selling_theta) That's tied for the longest such streak since 2009 (which, at 13, was the longest stretch on record according to data going back to 1992).

 

Credit spreads compressed further on the week but found some resistance today...

 

Treasury bond yields were all higher on the week with the long-end underperforming despite a rally into the weekend...

 

However, 10Y Yields fell back into their 30-year channel - somewhat disrupting the bears' claims that the bull is over...

 

The Dollar fell for the 4th week in a row (breaking down to its weakest since September)...

 

This was the yuan's best week since 2005!!

 

Ugly week for cryptos, leaving Bitcoin in the red for 2019...

 

PMs and Copper trod water on the week as crude prices exploded...

 

Things initially looked good for WTI's record win streak early on (ten consecutive daily gains would have marked the longest rally since the contract started trading in 1988), but once $53 was tagged, WTI tumbled...

 

Gold fell against the dollar and even more so against the yuan on the week...

 

Finally, amid all this exuberant stock buying and proclamations that "the bottom is in" - recession risk is at a seven year high...

Don't forget "you are here"...

 

==> Source: https://www.zerohedge.com/s3/files/inline-images/2019-01-11_12-30-59.jpg?itok=Bm1URNaf

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