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Record Surge In Global Virus Cases Sparks Panic-Bid For Stocks To All-Time Highs

Zero Hedge [1]
February 6, 2020

What better catalyst is there for buying US equities with both hands and feet than the Director-General of The World Health Organization – who has been down-playing the pandemic for days – admitting that the last 24 hours saw the biggest surge in coronavirus cases worldwide since the crisis began? And as far as rumors of a vaccine, how long will that take?

China did not supply liquidity last night, but momentum was still with the small cap tech stocks in ChiNext…

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Source: Bloomberg

European markets all bounced higher once again today…

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Source: Bloomberg

And as Industrials, Trannies, and Small Caps roared higher in the US, Nasdaq lagged (everything saw quite an ugly close)…

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Futures show the surge on the vaccine and the complete ignorance of WHO comments…

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Dow gapped through 29,000 and never looked back (IBM, UNH, and BA accounted for half of the index gains alone)

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And the S&P 500 almost perfectly top-ticked the record high from January (after testing the spike lows from the Iran missile strike)…

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The last 3 days have been the biggest short-squeeze since September’s melt-up (and melt back down)…

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Source: Bloomberg

As high-growth, super-expensive software stocks plunged today by the most in 2 months…

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Source: Bloomberg

The GS 8X EV / SALES software basket is a basket of US growth software stocks that carry the highest EV/S multiples in the group.

And then there’s TSLA!! Which suffered its biggest one-day drop ever…

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Following Bitcoin’s 2017 trajectory rather too well…

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Cyclicals are almost back to pre-virus levels…

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Source: Bloomberg

Big regime change today as Momo tumbled (cough TSLA cough)…that is the biggest drop in momentum in 2 months

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Source: Bloomberg

Treasury yields extended their rise (but note the jump in yields occurred on the vaccine headlines at 3amET not the ADP or ISM data)…

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Source: Bloomberg

30Y Yields rose to fill the gap from the major virus drop…

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Source: Bloomberg

Notably the market has un-priced its demands for Fed easing as stocks soared back to record highs…

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Source: Bloomberg

The Dollar Index broke out to the upside of its recent range today…

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Source: Bloomberg

Hitting 2-month highs and breaking above all its major moving averages…

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Source: Bloomberg

Yuan jumped on the vaccine headlines…

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Source: Bloomberg

Bitcoin surged today, nearing $9800 intraday…

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Source: Bloomberg

PMs drifted lower today as the dollar gained but copper and crude rallied on vaccine hopes…

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Source: Bloomberg

WTI was higher for only the 2nd time in 12 sessions on a surprise gasoline draw and chatter from OPEC+ of more cuts (but we note oil went out weak)…

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Source: Bloomberg

Finally, some context for everything else in the world’s reaction to the Wuhan coronavirus… and stocks…

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Source: Bloomberg

And maybe, just maybe, the fact that Bernie never won the Iowa caucus, which lowered his odds of a nomination (despite still leading by a mile at the bookies) may have buoyed the market (and Bloomberg just overtook Biden!)…

[28]

Source: Bloomberg