Dow Rallies To Best Start In 55 Years As Earnings, Economic Data Collapse

The Dow is up 9 weeks in a row (longest win streak since 1995) and is up 8 straight weeks to start a year for the first time since 1964.

The S&P 500 is having its best start to a year since 1987

 

Both of which are odd given that earnings are collapsing…

And macro data is crashing…

All of which reminds us of…

China had another huge week…

 

But Europe was mixed with the FTSE lower and Dax higher…

 

Another (holiday-shortened) week of gains for US equities led by Small Caps…

 

Buybacks dominated the week once again…

 

But today saw a huge short-squeeze…

 

 

Seems like RP strategies are back in control as Stocks and Bonds are bought and sold together…

 

Treasury yields were mixed this week with the long-end higher (30Y +2bps) and the rest of the curve lower in yield…

 

The dollar weakened on the week

 

Strong week for Yuan again…

 

Huge week for cryptos with Ether up over 20%, Bitcoin up over 10%…best week for Bitcoin since Mid-Dec 2018.

 

Copper gained the most on the week – amid China optimism – but all the major commodities gained on the week…

Copper is at its highest since July 2018…

But Baltic Dry is collapsing…

 

Gold gained in USD terms but was weaker in Yuan terms…

 

 

We give the last word to The Onion, who seemed to sum things up perfectly:

Attributing the gains this morning to them being “just kinda in the mood,” top Wall Street investors confirmed the U.S. stock market soared in early trading Friday after they decided it would be a fun thing to make happen.

“Often, you’ll see the S&P 500 rise because of a jobs report or international trade news, but other times it happens just because making the market go way up is what we felt like doing that day,” said veteran fund manager Jack Malcolm, who, like hundreds of his colleagues nationwide, reportedly woke up “feeling sorta blah” and chose to send all major U.S. indices climbing as a “nice little pick-me-up.”

“To be sure, the catalysts for strong market performance can be complex, and it’s not always easy to put your finger on the factors pushing growth. But this morning we made the Dow rise, like, hundreds of points for no particular reason beyond wanting to see a big spike go way up to the top of the chart. And it did! It looked pretty awesome.”

At press time, sources confirmed the entire global economy had entered a major recession after investors thought it would be cool to do that for a while.

As Gluskin Sheff’s David Rosenberg notes, the Citi Global Economic Surprise index, at -21.6, is nearly the same as it was at the Dec 24th market low. It’s now 227 days below zero — only exceeded by the Great Recession of 2008-09.

“Markets are totally devoid of economic realities.”