Stimulus Stalemate & SAP Slam Stocks, Hopes Crushed On COVID Chaos, Cresting 'Blue Wave'

Stimulus Stalemate & SAP Slam Stocks, Hopes Crushed On COVID Chaos, Cresting 'Blue Wave'
Stimulus Stalemate & SAP Slam Stocks, Hopes Crushed On COVID Chaos, Cresting 'Blue Wave'

Tyler Durden

Mon, 10/26/2020 - 16:01

So this happened (in the US)...





Worst day for stocks since June.



After this happened (in Europe)...DAX at 4-mo lows...





Source: Bloomberg



After a triple whammy hit of Software as a safe-haven being slammed; COVID fears being restoked; and election uncertainty picking up:





SAP warned, stealing some hope for that sector as a safe-haven during COVID chaos, and the stocks crashed by the most ever...





Source: Bloomberg



And that is just as COVID chaos is accelerating (in the mainstream media narrative) with Scott Gottlieb calling it a "tipping point" and WH CoS Mark Meadows admitting we're "not going to contain the virus." Of course, this is being stoked by the media to hype just how bad Trump is ahead of the election...




President Trump's claim that increased testing is leading to the rise in US COVID-19 cases is unsubstantiated, according to journalists and fact-checkers. https://t.co/uP2OCUfco0


— Twitter Moments (@TwitterMoments) October 26, 2020

But, as David Stockman noted, here's a curve that's flattened - the percent of all US deaths with COVID...





And hospitalizations are rising because non-COVID procedures that were delayed over the summer are finally getting their ops done, COVID-related hospitalizations remain low.



Additionally, reality is starting to dawn on more than a few market participants that Blue Wave odds are fading amid the exposure of Biden's corruption.





Source: Bloomberg



So don't panic?





US equity markets broke critical technical levels (50DMA)...





NOTE that at the cash open, algos went wild and ramped Nasdaq higher while dumping Russell 2000 but that idiocy was all unwound by the close...





Airline stocks were slammed...





Source: Bloomberg



Casino stocks also tumbled...





Source: Bloomberg



And Biden bellwether TAN also dropped...





FANG Stocks erased last week's bounce...





Source: Bloomberg



So much for algos attempt to diverge growth and value for some rotation momentum...





Source: Bloomberg



But momo spiked as value was crushed...





Source: Bloomberg



"Most Shorted" stocks were slammed by the most in a month...





Source: Bloomberg



VIX spiked dramatically, back to 33...





Source: Bloomberg



...signaling further downside to stocks...





Source: Bloomberg



VVIX also jumped to its highest since early September's slump...





Source: Bloomberg



And Put-Call ratios hit 5-month highs...





Source: Bloomberg



 



 



Source: Bloomberg



With 10Y Yield back below 80bps... so much for that "bond rout"...





Source: Bloomberg



The Dollar rallied on the day, erasing Friday's flub...





Source: Bloomberg



Cryptos all weakened today as stocks rolled over...





Source: Bloomberg



Bitcoin dropped back below $13,000 (but was trying to get back)...





Source: Bloomberg



Oil tumbled, extending its drop below $40...





Gold was flat on the day holding above $1900, Silver lower, back below $25...