Bitcoin, Bond Yields, & Black Gold Bounce Amid Big Auction & Bad Data

A quiet day with some uglier than expected housing data (new home sales miss) and manufacturing (Dallas Fed survey sunk) left bond yields and black gold higher, but bitcoin stole the headlines.

The bad data prompted a dovish drift in rate-cut expectations…

Source: Bloomberg

The dovish drift sent the dollar lower…

Source: Bloomberg

And pushed gold marginally higher…

Source: Bloomberg

Bitcoin surged back above $70,000 on heavy ETF volume…

Source: Bloomberg

And we suspect the ebbing of last week’s net ETF outflows switched back into inflows today…

Source: Bloomberg

Ethereum also ripped higher, back above $3600…

Source: Bloomberg

Bond yields were higher across the curve with the longer-end marginally underperforming. Selling was pretty much non-stop with a small bid into the US equity cash open and into the 2Y auction..

Source: Bloomberg

Oil prices surged as investors monitored escalating geopolitical tensions in the Middle East and Russia’s war in Ukraine, while output cuts by Moscow to meet OPEC+ targets and a decline in the U.S. rig count raised concerns over a potential tightening of crude supply.

Source: Bloomberg

Small Caps outperformed on the day while The Dow lagged. The last hour saw selling pressure resume, erasing most of Small Caps’ gains…

Small Caps were rocketed higher at the cash open by a mega squeeze but ‘most shorted’ stocks faded to almost unchanged by the close…

Source: Bloomberg

The Energy sector outperformed while Industrials and Tech lagged.

Boeing bounced higher on news that Calhoun was leaving, but that exuberance faded fast…

Mag7 stocks opened ugly, but the algos were not going to stand for that and lifted the basket to unchanged before fading late on…

Source: Bloomberg

NVDA rallied (again) but failed to take out the early March highs…

Source: Bloomberg

Finally, this is the most concentrated market ever…

Source: Bloomberg

…which is fine, right?