Investors Panic-Buy Tech, Dump Banks As VIX & Yield Curve Collapse

The Treasury yield curve is collapsing…

But because stocks are up…

 

This is the message from the mainstream media…

Nasdaq led the way today, decoupling from everything as US cash markets opened…

But for now – Lobbing bombs at another country is a buying-panic-inspiring moment once again…

On the day Nasdaq was en fuego, Trannies were down on the day as airlines fell)

Bob Pisani explains today’s rally: “The important thing is if you take Syria and China trade wars out of the headlines, you get back to the real market based on earnings” – hmm, Robert, banks are down on good earnings, and are we supposed to believe that Syria and trade wars are over?

All major US equity indices are now back in the green for 2018…

 

Netflix sparked a buying panic in tech stocks broadly…

 

Head and Shoulders anyone?

 

We do note that NFLX slipped back to close below its all-time intraday high…

 

And even more notable, despite blockbuster Goldman earnings – banks underperformed – sending the tech/financials ratio to its highest since June 2000…

 

Bank stocks are not lovin’ the yield curve collapse (or the plunge in vol!)…

 

Southwest was whacked after the awful events in Philly…

 

VIX tumbled to a 14 handle once again…

 

With the term structure normalized…

 

And if the historical relationship between VIX and the yield curve holds, then this dip in vol is for buying…

And bonds are not lovin’ the exuberant tech buying-panic…

 

For the second day in a row, Treasuries were sold overnight and bid through the US session…

 

With 30Y Yields back below 3.00% once again…

 

And the yield curve is in freefall…

 

The Dollar Index spiked in early trading as German economic ‘hope’ collapsed (and EUR tumbled)… and extended gains on Mnuchin’s walk back of Trump FX tweet…

 

Meanwhile The Hong Kong Dollar just won’t budge from its lower peg band limit…

 

Despite headlines about NY AG probes, Cryptos held on to the week’s gains as Tax Day passes…

 

Commodities dropped overnight, but rallied back to end around unchanged on the day…

 

But one commodity is on fire (thanks to Washington’s Russia sanctions)…

 

 

Bonus Chart: German Stocks soared today – to the highest since early Fed – as Economic ‘hope’ crashed to the lowest since 2012!!

Thank You Mr.Draghi! ECB’s CSPP program was launched in June 2006.

Bonus Clip…