Silver as an investment

Bonds Battered, Submerging Markets Slump, & Small Caps Hit Record High

Everything was awesome until Trump dropped the truth bomb about China trade talks…

Small Caps and Trannies outperformed…

 

S&P, Dow, and Nasdaq remain red for the week…

 

The S&P found support at its 100DMA…

 

VIX tested down to a 12 handle once again but bounced…

 

Small Caps  – which dominate the ‘most shorted’ – soared to another new record high as the short-squeeze continued on…

 

Italian banks remain under pressure…

 

US Homebuilders continue to get hammered

 

The Treasury complex was very mixed with the long-end continuing to get hammered (30Y +3bps) and the short-end bid (2Y -2bps)…

That was the first drop in 2Y Yields in 10 days.

10Y closed at 3.11% – highest since July 2011

 

30Y closed at 3.25% – highest since Sept 2014

 

Which pushed the yield curve to its steepest since the release of The Fed minutes in April…

 

 

 

Emerging Market FX dipped back lower after a brief dead cat bounce yesterday…

 

With the Colombian Peso pounded, Rand routed, and Lira lashed…

 

Crytpocurrencies also slid lower once again – so much for the Blockchain Week Bounce…only Ethereum remains green from last Friday’s close…

 

Copper and Silver managed modest gains on the day, oil was flat, gold was lower.,..

 

WTI/RBOB ended the day unchanged despite some vol… (WTI topped $72 and Brent topped $80 intraday)…

 

Silver is notably outperforming gold in the last few days…

 

Finally, we note that as Small Caps make new record highs, relative to The Dow, the Russell 2000 is back at the same level as when Trump was elected…