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10Y dollar Dow emerging markets europe FX S&P 500

Color Me Bigly.

Risk. On. Dammit.

It was risk-on all the way to start the week as Wall Street took its cues from Asia and Europe where stocks jumped amid what everyone is calling “optimism” about the U.S. tax plan. That would be the plan that almost no one in America really wants.

Well, I shouldn’t say “no one”…

For noted equities strategist Kellyanne Conway, correlation always equals causation …

The Nasdaq hit 7,000 intraday:

Nasdaq

Notably, the S&P has now gone 69 consecutive sessions without a 1% move in either direction:

SPX69

As for the dollar, it’s all “buy the rumor, sell the news”:

DXY

Treasurys bear steepened as 30Y yields surged:

30Y

European shares staged a broad-based rally with the DAX leading the charge. All 19 Stoxx 600 sectors rose; 535 Stoxx 600 members logged gains.

Europe

The VStoxx dove 10% and an intraday record low, as volatility continues to collapse across the globe:

Stoxx2

In Japan, the Topix rose 1.4% to its highest level since 1991:

TOPIX

Best day for the Nikkei since November 7:

Nikkei

Notably, the Chilean peso and the rand soared on election optimism. I’m not a peso aficionado, but that looks like the best day since June of 2016:

USDCLP

The rand jumped on Cyril Ramaphosa’s ANC victory and there for a minute, the currency was having its best day in something like two years. South Africa’s CDS spreads fell 9bps to 164bps – that would be the lowest level in three years. This is probably the easiest way to capture things:

SouthAfrica

Of course this was yet another day dominated by Bitcoin news flow. The CME futs started trading on Sunday evening (full recap). Here’s how that’s going so far:

BitcoinFuts

Stay tuned tomorrow for more of the same as everyone makes up excuses to engineer a Santa rally.

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4 comments on “Color Me Bigly.

  1. Clearly the Trump administration is both historically, mathematically and scale challenged. If you look at the Obama stock market from March 2009 to 2016 – it was up 210% – or about 30% a year if averaged. (http://money.cnn.com/2017/01/10/investing/obama-stock-market-trump/index.html).

    It is more credible to argue that the current market increases are extensions of the market increases that started in 2009 under Obama, than it has to do with Trump regardless of all his false and fake claims.

  2. preaching to the choir, bud

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