DXY remains strong:
But not strong enough to prevent an Australian dollar blast off:
Gold hit news highs too, finally. If this is the recovery (which is very doubtful) expect it to keep going:
Oil sagged:
Dirt was muted:
Miners too:
EM equity took off:
Junk firmed:
Bonds sold:
Stocks blasted higher:
Stocks were pushed higher by two hopes. Recall the “hammer and the dance”:
The hammer has begun to work in Europe. And it may be that we’re seeing the same in the US (though its testing is so poor that it is uncertain):
Second, El Trumpo’s fiscal firehose sprung another leak on Fox News:
Wall Street sources briefed by Congressional leaders and White House say expect next round of virus stimulus by May, and somewhere in the $1.5 trillion neighborhood.
Lost on the market during the relief is that “the hammer” is the easy part. “The dance” rolls on endlessly, preventing any kind of return to normalcy for economic activity or corporate profits.
As such, we still see a second round of financial crisis as the great default wave arrives and pancakes the banks.
Until then, Australian dollar rallies are on a hiding to nothing.
