Small Caps Slammed And Bonds Bloodbath As Tax-Hopers "Sell The News"

Sometimes better not to play at all…

Video length: 00:04:05

Bonds & Stocks both slammed lower today – the worst combined day since 11/9/16…

Trannies ended the day higher but the rest of the major US equity indices “sold the news”…Small Caps worst…

Futures show the excitement better over the last two days (not the dip in Nasdaq to unch from Friday before bouncing)…

High Tax companies did manage to outperform for the second day in a row but it was not exactluy breathtaking…

FANG Stocks sank into the red for the week…

LongFin rallied (despite CRCW’s suspension)…

Banks drifted (despite the curve steepening) with Goldman giving back all of yesterday’s gains…

The last two days have seen the biggest spike in Treasury yields since the election (but note that yields started to roll lower after the tax vote)

And the biggest steepening of the yield curve since before the election… (NOTE – the long-bond was not helped by comments on the more long-dated issuance by Germany pushing their curve steeper)…

Note that 30Y Yields are following a very similar pattern to November’s FOMC…

Don’t get too carried away on this bond yield rip though – long-bond speculators were at near record longs and had added to net longs the most since 2007 – so it’s a positional squeeze, not a trend change…