As expected, Tuesday was a largely pointless day as markets lazily reopened after the holidays.
Trump got America off to a positive start by tweeting this:
The only way that could be any sillier is if he screwed up and tweeted to a fake, non-verified Fox & Friends account where the word “friends” was spelled with an “l” instead of an “i”. Oh, wait. He did.
Tech underperformed as Apple fell on reports of lackluster demand for the iPhone X:
For whatever it’s worth, Rosenblatt’s Jun Zhang thinks this isn’t accurate. “Press reports of order cuts of iPhone X units by Apple could be confusing the market and may be referring to previously mentioned iPhone 8/8 Plus production cuts,” Jun writes in a new note, adding that “Rosenblatt does not expect iPhone X component order cuts for the March quarter and maintains its iPhone X production est. of >35m units.”
The jitters of course showed up in Taiwan with the suppliers:
Apparel stocks outperformed on what I guess is holiday euphoria. The S&P 1500 Apparel Retail Index hit its highest level in more than a year:
10Y yields moved lower as did the dollar:
More goddamn debt ceiling jitters (read: legislative ineptitude manifesting itself):
U.S. 3-MONTH T-BILL AUCTION GETS LOWEST BID-COVER SINCE 2009
— Heisenberg Report (@heisenbergrpt) December 26, 2017
Crude surged after reports of an explosion on the pipeline that carries crude to Libya’s Es Sider terminal.
This comes after two straight weeks of outflows from USO (-$35.5m last week and -$63m the week before).
Let’s see… what else? Apparently commodities are “a screaming buy“:
Tight liquidity (overnight CNH Hibor one-month high) and low volume has the offshore yuan at the strongest level since September:
We’ve done enough crypto bashing of the past couple of days so we figured we’d show you how you would have done in percentage terms had you bought Bitcoin, Litecoin, and Ethereum at the Friday morning lows:
Of course invariably you didn’t buy at those lows, and the bad news is, Bitcoin is still down some 20% from the highs hit just ahead of the CME futures launch:
Finally, here’s one for fun: