{"id":1447369,"date":"2024-01-02T21:00:00","date_gmt":"2024-01-03T02:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1447369"},"modified":"2024-01-02T21:00:00","modified_gmt":"2024-01-03T02:00:00","slug":"2024-starts-with-bitcoin-breakout-crude-collapse-mega-cap-meltdown","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/2024-starts-with-bitcoin-breakout-crude-collapse-mega-cap-meltdown\/1447369\/","title":{"rendered":"2024 Starts With Bitcoin Breakout, Crude Collapse, Mega-Cap Meltdown"},"content":{"rendered":"

2024 Starts With Bitcoin Breakout, Crude Collapse, Mega-Cap Meltdown<\/span><\/p>\n

\n

Weaker than expected construction spending data and a dismal (final) Manufacturing PMI print <\/strong>for December suggested 2024 is not off to the ‘goldilocks’ start so many hoped for.<\/p>\n

<\/a><\/p>\n

However, despite the ‘weak’ data, Treasury yields were higher and the dollar stronger.<\/strong><\/p>\n

Treasury yields were up across the board with the short-end underperforming (2Y +9bps, 30Y +5bps). Yields gapped higher to open and then traded in a narrow range from the European open…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

The 10Y yield gapped up to three-week-highs, hovering at the post-FOMC plunge levels…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

The dollar ripped higher to start 2024 – its biggest daily gain since March 2023…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Mega-Cap stocks took a beating (not helped by AAPL downgrade), erasing all of December’s gains…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

AAPL tumbled to near two-month lows…<\/p>\n

<\/a><\/p>\n

Semis suffered their biggest daily drop since Dec 2022…<\/p>\n

<\/a><\/p>\n

…and that dragged Nasdaq down to its biggest drop in over two months, underperforming the rest of the US Majors. A late-day mini-melt-up added a little lipstick to this pig and The Dow was the least ugly horse in today’s glue factory…<\/p>\n

<\/a><\/p>\n

Dow futures perfectly roundtripped to Friday’s cash close levels today…<\/p>\n

<\/a><\/p>\n

Major u-turn in ‘most shorted’ stocks too today. Gap down open immediately squeezed higher, only to rapidly give it all back after Europe closed…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Bitcoin broke-out today above the early December highs to its highest since April 2022, coming within a few ticks of $46,000…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Ethereum also rallied on the day, above $2400 intraday, but underperformed Bitcoin, dragging ETH\/BTC down<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

The strength of the dollar weighed on gold which ended down only modestly on the day (after losing overnight gains)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

But, perhaps the most notable move today was in the energy patch.<\/p>\n

Oil prices surged overnight amid growing tensions in the MidEast but then, at around 9amET, WTI was unceremoniously dumped as if any war\/geopl risk premium was entirely worthless. And then it legged down again despite headlines that Israel had killed a senior Hamas official in Beirut (potentially drawing Iran even more explicitly into the melee)…<\/p>\n

<\/a><\/p>\n

Finally, President Biden’s stock market performance continues to lag that of President Trump’s…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

…but just you wait until March or April when the Biden admin will crow at their outperformance (compared to Trump’s COVID collapse)<\/p>\n

Investors are back at ‘Extreme Greed’ levels…<\/strong><\/p>\n

<\/a><\/p>\n

Source<\/a><\/em><\/p>\n

Doesn’t look good for Santa-Rally support… and for the last five years, as goes the first 5 trading days, so goes the year…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

With 150bps of rate-cuts priced in for 2024, there is not much room for error.<\/strong><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 01\/02\/2024 – 16:00<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/2024-starts-bitcoin-breakout-crude-collapse-mega-cap-meltdown<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

2024 Starts With Bitcoin Breakout, Crude Collapse, Mega-Cap Meltdown Weaker than expected construction spending data and a dismal (final) Manufacturing PMI print for December suggested…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1447369","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1447369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1447369"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1447369\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1447369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1447369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1447369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}