Bonds and Bullion are bid and the yield curve crashed as the Santa Claus rally fails to appear for a second day...
Gold's gains are S&P's losses as the two converge for the month of December...
For the second day in a row, stocks went nowhere despite the promise of the Santa Claus rally... (NOTE the somewhat ridicluous instaramp in the last 2 minutes to get stocks green)
Futures show the week so far better - Nasdaq (green), Dow (blue), S&P (red) (note AAPL was down again today, testing its 50DMA).
..
Perhaps it is because,
FANG Stocks are down for the 6th day in a row... (the longest losing streak since Nov 4th 2016)
Banks have been under pressure this week...
VIX jumped somewhat notably today (3rd day up in a row) - NOTE the VIX hammering into the European close and then it snapped...
Despite a heavy tail in today's 5Y auction, yields crashed across the curve and the yield curve flattened dramatically...
Perhaps a few funds are seeing the 'value' in bonds?
Notably 10Y yields dropped back below 2.4% (YTD unch)...
Which is notable, as Strategas points out, a 12/31 close above 2.44% would be the 3rd year of rising rates in a row - the longest stretch since 1981...
The yield curve crashed most since Brexit to a new cycle low...(lowest close since Oct 2007)
There is some serious problems brewing in Japanese liquidity markets as while Euro- and Sterling cross-currency swaps have bounced back, Yen-USD basis swaps have collapsed to a new cycle low suggesting major USD-funding issues for Japanese entities...
The Dollar Index slipped lower today...lowest close since Dec 5th
WTI was unable to extend yesterday's gains above $60...
Gold and Bitcoin continued to recouple...
As Gold surged above its 100DMA for the first time in a month... (NOTE - gold suffered a death cross as the 50DMA crossed below the 200DMA)
Meanwhile copper is at near 4 year highs...
The question is - why are bond yields collapsing and not playing along...
Cryptos had a mixed day with Ripple ramping, but Ether, Bitcoin, and Litecoin all sliding...
Bitcoin futures volume picked up today but remains notably lower than last week...
As a fional notes, CFTC reports that net speculative positioning in CBOE Bitcoin Futs is -1371 contracts, or Short 6,855 Bitcoins... so prepare yourself for a short squeeze.
Bonus Chart: WTF!!
