Small Caps Are Suddenly Puking

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    Small Caps Are Suddenly Puking Update (1125ET): As the European close looms, Small Caps suddenly lost all their panic-bid, erasing all the overnight rally and rapidly puking the post-Taper gains. The Dow is also red on the day… *  *  * US equity markets began today as they finished yesterday with a panic-bid at the cash open, extending gains post-Taper… However, bonds, gold, and the dollar are all reversing the initial post-Taper moves… The dollar has entirely erased the losses post-Taper (thanks in large part to the drop in cable due to BoE’s surprise)… And while stocks are bid, bond yields are also tumbling, reversing the moves from yesterday… The 5Y Yields is puking lower… The yield curve (20s30s) has steepened, erasing the inversion… Finally, Gold is the most impressive, not just reversing the kneejerk drop, but soaring back up to $1800… Spot the odd one out…   Notably, Powell appears to have threaded the needle and managed to jawbone down rate-hike expectations… Will that all change on a ‘big’ number tomorrow? Tyler Durden Thu, 11/04/2021 – 11:25

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