Small Caps Slayed As Yields, Crypto, & The Dollar Soar

Bitcoin came within a few bucks of the $90,000 Maginot Line today - up a stunning 30% since right before the election results started to pour in...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

Winter is over?

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

Massive inflows into BTC and ETH ETFs over the last week have helped...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

...and so has the sudden resurgence in global liquidity...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

Ethereum was actually lower on the day today after topping $3400 intraday

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

...as the post-election DeFi mania wears off...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

The dollar was another huuuge winner today... up over 5% in the last seven weeks to two-year highs...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

The dollar strength has started to hammer gold - which is now down at near two-month lows...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

The gold-dollar correlation regime has normalized after both surging together for a few months...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

Yields surged today, playing catch up after yesterday's holiday (the long-end was a slight laggard with 10Y +13bps, 2Y +9bps). Yields are now back up near the post-election spike highs...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

10Y Yields are back at their highest in five-months...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

Small Caps were really ugly today (-1.8%) while The Dow ended on the lows of the day...

small caps slayed as yields crypto the dollar soar

...as the 'short squeeze' finally stalled (worst day for 'most shorted' stocks since Sept 3rd)...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

...and yields start to hurt from the bottom up (small-caps, then mid-caps) after the bigly squeeze from the election...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

Bond vol is starting to pick up a little...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

Crude oil prices were flat today with WTI holding around $68, still notably down from the election...

small caps slayed as yields crypto the dollar soar

Source: Bloomberg

Finally, investors want equities: SPY has witnessed 9 consecutive days of inflows (totaling to ~$18bn over the period)...

small caps slayed as yields crypto the dollar soar

Source: Goldman Sachs

As Goldman Sachs trader John Flood notes, the longest streak of inflows SPY has seen is 10 days, which was last witnessed in 2014.

 

Authored by Tyler Durden via ZeroHedge November 12th 2024