Stocks Pump'n'Dump As Stimulus Hopes (& The Dollar) Slump Tyler Durden Thu, 09/24/2020 - 16:01 The Dollar tumbled intraday, ending the 4-day win streak and biggest surge since March... Source: Bloomberg Stocks hit session highs on speculation that talks about a new round of economic stimulus will resume amid growing concern over a resurgence in coronavirus cases around the world. Then reversed on reports that "no talks" were scheduled between Mnuchin and Pelosi. A record daily surge in COVID cases in France didn't help... Or visualized a different way... Shortly on today‘s trading session pic.twitter.com/vtkJVvCuaE — Russian Market (@russian_market) https://twitter.com/russian_market/status/1309208886566584325?ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); Small Caps bounced off 200DMA (but then retraced back below it), Dow bounced off 100DMA at the open... The S&P 500 broke down into the red for 2020 today (below 3230.78) but the machines made sure it closed above it... Election uncertainty pushed higher once again... Source: Bloomberg Despite Oil's modest gains, XOM slipped lower, pushing its dividend yield above 10% once again!... Source: Bloomberg As Bloomberg notes, the world's second-biggest oil explorer by market value has pledged to defend the payout, which has increased for 37 consecutive years, but stubbornly low crude prices have meant a reliance on borrowed money to fund it. SPACs were spanked (after SEC concerns)... Source: Bloomberg Or visualized a different way... Momo's short-term run against value appears to have its upper limit once again... Source: Bloomberg Treasury yields remained in an insanely narrow range once again (10Y yields traded inside a 2bps range today). On the week, 30Y is down around 5bps, 2Y unch... Source: Bloomberg Driving Bond vol (MOVE) back down to record lows (the biggest divergence from VIX in over 30 years)... Source: Bloomberg Real yields pushed higher again... Source: Bloomberg Turkish Lira screamed higher on the back a surprise rate hike (first since 2018)... Source: Bloomberg Bitcoin managed some decent gains as the dollar sank today... Source: Bloomberg Silver rebounded during the US day session, getting back above $23... WTI pushed back above $40 as the dollar weakened... Gold/Silver reversed lower today (after a notable spike in the last few days)... Source: Bloomberg Finally, in case you were wondering if it's over yet? https://twitter.com/beartrapsreport?lang=en!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); that one rule of thumb we learned years ago - when you see a 3% drawdown, they only rarely happen alone, they often come as a cluster. The Nasdaq fell -3.1% on Wednesday, underperforming the other major US indices. Looking at all of the -3% Nasdaq drawdowns over the past decade, a trend is clear... Large drawdowns come in clusters, they are rarely isolated events. With every big drawdown we see, there is an increased probability we see another one. Source: Bloomberg Trade accordingly.