Stoner Stocks Soar, Tesla Tumbles, Dollar Dumps, & Gold Jumps

Stoner Stocks Soar, Tesla Tumbles, Dollar Dumps, & Gold Jumps

Get higher baby…

Pot stocks caught the eye of Redditors and soared…

Source: Bloomberg

Led by an explosion higher in heavily-shorted TLRY (up around 50% today)…

Source: Bloomberg

Some of the original WSB trades performed well today with GME up over 3% (but they’re all still down dramatically from the peak of the debacle)…

Source: Bloomberg

But GME’s early ramp faded fast late on…

Source: Bloomberg

But one momo darling got clubbed like a baby seal (for once) as TSLA was trounced, worst day in a month (and dragged the market lower) on the heels of a massive OTM Put option buy and the reverse-gamma created…

Source: Bloomberg

TSLA found support at $800…

Source: Bloomberg

Bear in mind that TSLA’s drop today took 45 points off the S&P 500 (and AMZN took 30 off with its drop). BKNG, TYL, and NVDA added over 100pts between them to offset.

We couldn’t help think of Leeroy Jenkins spoiling the game for everyone else…

When TSLA got whacked, the machines hit the market with a decent sell program hitting everything…

Source: Bloomberg

Small Caps broke their win-streak today, underperforming the rest of the majors along with Nasdaq 100. The Dow managed to outperform, barely holding on to green on the day…

Source: Bloomberg

Heavily-shorted Biotechs seem to have lost favor with the Reddit crowd…

Source: Bloomberg

And short-watch-penny-stocks also slipped lower…

Source: Bloomberg

Energy stocks – once again – dominated the gains with Consumer Discretionary the laggard…

Source: Bloomberg

Treasury yields were lower across the curve (with the long-end outperforming, 30Y -3bps, 3Y -1bps)…10Y dived quickly today on the weaker than expected core CPI print…

Source: Bloomberg

The Dollar fell for the 4th straight day, almost back to unchanged on the year…

Source: Bloomberg

Cryptos rolled over today with Bitcoin back below $44k briefly…

Source: Bloomberg

Ethereum also slipped lower, finding support at $1700…

Source: Bloomberg

Gold managed to hold on to gains after briefly spiking higher, ironically on disappointing inflation…

Source: Bloomberg

A weak dollar and bigger than expected crude draw sent WTI higher once again…

Source: Bloomberg

Finally, Bitcoin may seem like a risky proposition, but there’s another way to approach it.

In combination with gold, the cryptocurrency is less risky than the broader U.S. equity market, Bloomberg Intelligence’s Mike McGlone writes.

Source: Bloomberg

The 260-day realized volatility on BI’s Gold-Bitcoin 75/25 Index currently sits near its lowest level ever versus the market, “around 20% less than the same risk measure on the S&P 500 and appearing in early recovery days akin to the start of 2016.”

Tyler Durden
Wed, 02/10/2021 – 16:00

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