PPI Panic Sparks Big-Tech Bid, Small Caps Skid, Crypto Crumble

PPI’s record YoY surge pissed all over CPI’s “transitory” narrative-confirming fireworks and things reversed yesterday’s moves…

Another day, another chaotic opening battle of the algos between Small Caps (Russell 2000) and Nasdaq…

Growth outperformed Value today, but Value is the week’s winner so far (with today’s Growth ramp getting back to even on the week)…

Source: Bloomberg

Markets were somewhat chaotic around the record high PPI print that spoiled yesterday’s transitory-narrative-confirming CPI print. But then the trend affirmed itself with Nasdaq bid and Small Caps offered. The Dow managed to scramble back to unchanged on the day…

Dow and S&P made new record closing highs.

Small Caps once again were unable to hold gains above the 100DMA…

“Money Flow” today decoupled from the post-EU-Close ramp in the market…

Semis were down for a 6th straight day – the longest losing streak since Oct 2018 – but each of those days has seen an opening plunge followed by a BTFD bounce…

Source: Bloomberg

Treasuries were sold all day with none of the usual geographic shifts in demand as it seemed like today’s plan was to unwind yesterday’s CPI gains…

Source: Bloomberg

The 10Y Yield pushed up to yesterday’s highs and stalled…

Source: Bloomberg

The dollar bounced back a little today from yesterday’s CPI-driven tumble, but the bounce was nothing like in bond yields…

Source: Bloomberg

Probably the biggest market mover of the day was crypto which erased much of the week’s gains.

Bitcoin slipped back below $44,000 before bouncing back a little…

Source: Bloomberg

Ethereum followed the same path, testing below $3,000 intraday before bouncing back…

Source: Bloomberg

Gold futures pushed up to $1760 – erasing most of Sunday night’s flash crash – before fading back a little to end unch…

Oil prices faded modestly after yesterday’s spike, with WTIO back below $69…

Finally, we have two words – “bad breadth”… Many companies listed on the New York Stock Exchange have been left behind by investors as the S&P 500 Index extends a record-setting run. A cumulative advance-decline line for NYSE stocks slipped as much as 3.7% through Tuesday from a record set June 8, according to data compiled by Bloomberg.

Source: Bloomberg

After the A-D line peaked, the S&P 500 climbed to records 20 times, with the latest one registered on Wednesday. The contrast is a “non-confirmation to keep an eye on,” Liz Ann Sonders, chief investment strategist at Charles Schwab Corp., wrote in a Twitter post Wednesday.