Stocks Bounce As Huawei Hope Trumps Home Sales Horror

It appears President Trump saw the news last night, did not like stocks being red and reversed his Huawei ban (at least temporarily), everything is awesome again…

 

Trump’s apparent (temporary) fold on Huawei sparked buying euphoria at China’s open, but things faded in the afternoon session…

Although rare-earth stocks soared…

 

German stocks led the bounce today but European stocks remain red on the week…

 

US equities ripped higher today, led by Small Caps and Nasdaq, but Nasdaq remains red on the week (unable to erase yesterday’s losses)… S&P and Nasdaq weak into the close

NOTE – 6th day in a row of panic-buy-the-f**king-cash-open (and a weak close again)

Volume was very weak (SPY around 40% below average)…

 

And amid the low volume ramp, another big short-squeeze helped send Small Caps surging on the day (and week)…

 

And it appears Buybacks were once again unleashed…

 

A look at S&P futures shows the ramp today looks very technical in nature, slowly drifting higher to cover the pre-open drop from yesterday but unable to accelerate beyond that…

 

Notably Semis stocks only retraced around Fib 61.8% of the drop from yesterday’s Huawei headlines…

 

Homebuilders rallied aggressively on the day…

As existing home sales slumped once again, ignoring the lower mortgage rates…

 

TSLA bounced (despite the bear-case analyst forecast of $10 target)…

 

But BYND was down!!!

 

Treasury yields were higher on the day with the short-end underperforming notably (2Y +3.5bps, 30Y unch)..

 

The yield curve is flattening dramatically…

 

The Dollar ended the day higher, almost erasing all of yesterday’s losses (despite a big spike lower as cable spiked higher on Brexit headlines)…

 

Cable spiked on May’s speech and the possibility of a 2nd referendum, then dumped as Corbyn rejected it…

 

The Hong Kong Dollar remains unable to escape the lower end of its USD peg band…

 

Cryptos were relatively quiet on the day with early losses being erased, notably cryptos mini-flash-smashed around 0830ET…

 

With Bitcoin testing up against $8000 numerous times intraday…

 

Crude and copper dropped on the day as Gold slipped further but silver held gains…

 

Commodities agree with bonds on growth/inflation expectations…

 

Gold in Yuan continued to slide (after tagging 900 yuan last week)…

 

Finally, a reminder that global money supply growth support is fading fast…