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EM Bloodbath, bond yields tumble, yield curve collapsing...but Nasdaq surging - "tread lightly" my friend

The big headline maker of the day was not stocks but the FX markets as the dollar index exploded to 8-month highs (second biggest daily gain of the year) after a dovish Draghi sent EURUSD tumbling...

This is actually the highest close for the dollar since July 2017...

And despite numerous interventions, promises of intervention, and threats - Emerging Market FX was a bloodbath...

 

Falling to its weakest since Feb 2016...

 

The Mexican peso was mashed lower...

3 additional swap auctions failed to hold the Real...

 

Erdogan threats failed to hold the Lira...

 

And IMF bullshit and promises of billions in interventions did nothing for the Argentine Peso which was clubbed like a baby seal...

The peso has lost 96.5% of its value relative to the dollar since 2001.

And as the peso plunged so Argentine Century bond yields spiked to 9%... (price is now below 80c on the dollar)

 

And before we leave the carnage...

Hugh Hendry has some advice...

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Small Caps and Nasdaq managed to get back to green post-FOMC but the rest of the major indices are lower...

 

Futures show the big divergence between Dow and Nasdaq as everything ramped into the open...

 

Big banks underperformed Small banks post-FOMC...

 

Tech stocks outperformed financials once again but stalled at previous resistance...

 

Growth continues to top Value...

 

Bonds rallied as stocks rallied today...

 

Treasuries yields were mixed today with the long-end bid and short-end offered...

Which crashed the yield curve to new cycle lows (flattest since Oct 2007)...

10Y Yield pushed lower non-stop since topping 3.00% after The Fed yesterday...

 

We covered the FX markets above but it's worth a glance at the EUR today... which collapsed from 1.1850 to 1.1590... the biggest daily drop since the Brexit vote...

Because the world and his pet rabbit was long EUR...

 

Cryptocurrencies saw a big rally today after SEC ruled that Ether was not a security and CBOE opened the door for Ether futures...

But despite the best day in 3 months, cryptos remain ugly on the week...

 

Sending Ethereum back above $500...

 

Commodities were confused today with a soaring dollar accompanying big gains in crude and silver and gold pushing back above $1300 (as copper tumbled on weak china data)...

 

Silver continues to accelerate relative to gold with Gold/Silver at its lowest since Thanksgiving...


To summarize: US stocks are higher, because European stocks are higher, because Draghi crushed the Euro, because he sees growth ending...