Shart Of The Deal - Stocks & Bond Yields Puke On Trump 'No Stimulus' Tweet Tyler Durden Tue, 10/06/2020 - 16:00 Just when you thought it was safe to buy the reflation trade with both hands and feet, https://twitter.com/realDonaldTrump/status/1313551794623127552?s=20!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"); Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their request, and looking to the future of our Country. I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business. I have asked Mitch McConnell not to delay, but to instead focus full time on approving my outstanding nominee to the United States Supreme Court, Amy Coney Barrett. Our Economy is doing very well. The Stock Market is at record levels, JOBS and unemployment also coming back in record numbers. We are leading the World in Economic Recovery, and THE BEST IS YET TO COME! Which prompted this reaction in stocks... Or put another way... Small Caps were soaring relative to mega-Tech for most of the day until the Trump tweet reversed things... but its notable where the relative level was when it reversed... S&P broke below its 50DMA, Dow and Nasdaq also pushed down to that key technical level... Critically, the S&P failed around its key gamma level at 3410... Some notable levels below here... Airlines crashed... Source: Bloomberg Banks were battered... Source: Bloomberg FANGs fubar... Source: Bloomberg Growth and Value were both whacked... Source: Bloomberg Cyclicals were hammered... Source: Bloomberg Panic hit retail... Robinhooders logging on after their mid-afternoon nap.... pic.twitter.com/LuxYEEF7nE — NOD (@NOD008) https://twitter.com/NOD008/status/1313558110464864257?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"); Which prompted Dave Portnoy to explains why traders should "buy the dip." I’m on a plane. https://twitter.com/realDonaldTrump?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"); is trying to show people what will happen to stock market if people don’t elect him. However he can’t win by intentionally tanking the stock market like he just did. He will lose any economic votes he has. He will change his tune soon. https://twitter.com/hashtag/ddtg?src=hash&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"); — Dave Portnoy (@stoolpresidente) https://twitter.com/stoolpresidente/status/1313558998394769408?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"); Bond yields immediately plunged Source: Bloomberg 10Y dropped back below 75bps... Source: Bloomberg Real Yields were notably higher on the day until the Trump tweets hit... Source: Bloomberg The Dollar spiked... Source: Bloomberg Gold futures fell back below $1900.. Silver was slammed back below $24... Sending Gold/Silver back above 80x... Source: Bloomberg Oil prices did drop on the 'no stimulus' tweet but remain higher on the day, bouncing off $40... Finally, one has to wonder what happens to the excited upgrades of EPS expectations if there's no new bailouts... Source: Bloomberg Powell was desperately pleading for more fiscal stimulus this morning once again... what nearly every Fed speaker has said about fiscal stimulus: https://t.co/69khl3ifk5 pic.twitter.com/vDqy9E2fNw — Brian Cheung (@bcheungz) https://twitter.com/bcheungz/status/1313556582232457216?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"); Perhaps this is why - he has realized that the liquidity delusion has finally stopped working... Source: Bloomberg