It is the 16th of July 2018

Trade Tumult Sparks Safe-Haven Bid For US Bonds & Mega-Cap Tech Stocks

Investors chose to 'barbell' their portfolios today (if you want to believe that such a thing as 'investors' exist) - seeking protection from trade wars by buying bonds and buying the biggest cap, highest valuation, tech behemoths - makes perfect sense really...

Chinese stocks were miraculously panic bid at the open (remember this was after US equities had tumbled)...

 

Once again - as futures show - the US equity market open sparked a ridiculous panic-buying spree in Nasdaq (mega-tech) stocks...

*NASDAQ 100, NASDAQ COMPOSITE INDEXES CLOSE AT ALL-TIME HIGHS

Cash markets show that Small Caps undeperformed and actually struggled to get green for a while before europe closed and more momentum came into US Stocks...

VIX was monkeyhammered lower as S&P 2800 was once again the target for the machines but failed (NOTE - the pre-market signaling that we have seen before in those VIX tails)

 

And The Dow extended its bounce off the 50/100DMA...(NOTE, it may be a small thing but this was a lower high in the dow)

 

And another giant short-squeeze...

 

Wells Fargo was lower but the rest of the big banks were up ahead of earnings tomorrow morning..

 

FANG Stocks surged to a new record high...

Does anyone else get the feeling these markets are being 'helped' to ensure the policies of the countries' officials appear to be working (or not hurting)?

And so while investors sought the safe-haven of mega-cap tech stocks, they also bid the long-end of the bond curve...

 

30Y Yields rebounded to pre-Tariff levels then fell back...

 

Notably, following CPI's print this morning, real 30Y yield are once again almost negative...

 

Oh, and while the longer-dated yield curve continued to collapse...

 

The short-end has already inverted...

 

Transitory...

 

The dollar chopped around intraday but ended practically unchanged...

 

Offshore Yuan tumbled overnight, then rebounded to test up to the CNY fix (which was notably devalued), before fading again...

 

Cryptos legged down once again today...

 

PMs managed small gains on the day, as did copper, but crude kept tumbling...

 

In fact WTI traded back below $70 for a while today

 

 

==> Source: https://www.zerohedge.com/sites/default/files/inline-images/2018-07-12_12-50-27.jpg?itok=FpgLqk6H

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