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Stocks Advance For 7th Straight Month As Yield Curve Crashes To 10 Year Lows

Well that was easy...

When does this mouth snap shut?

 

Japan wins October... with only two down days all month (the first -0.4% and the 2nd last night -0.003%!)...NKY's best month since Oct 2015

S&P, Dow, and Nasdaq's best month since February, Trannies were the only major index red with Small Caps bouncing back green today...

 

This is the 7th straight monthly advance for the S&P 500 (and Dow) (Last 7 mth, May 2013. Last 8 mth, Jan 2007. Last 9, Mar 1983).. and 11th of the last 12 months up...

h/t @JohnKicklighter

Tech, Utes, and Financials outperformed in October... Retailers lagged...

 

FANG Stocks surged almost 8% in October - 2nd best month ever...

TSLA ended the month -3%... AMZN up 15%

 

Another ugly day for Under Armour... to the lowest since April 2013...

 

It was a big month for other assets too...

  • Dollar Index rose 1.7% in October - best month since Nov 2016
  • Bitcoin surged 52% in October to a new record high
  • 2Y Treasury yield rose 11bps in Oct, 2nd monthly rise in a row to highest monthly close since Sept 2008
  • TSY 5s30s curve flattened for 3rd month in a row to flattest monthly close since Oct 2007
  • WTI Crude's highest monthly close since June 2015 (up 2 months in a row)
  • Gold's first consecutive monthly drop since Dec 2016

Stocks bounced back from yesterday's dip with Small Caps outperforming today and Nasdaq since Friday

 

VIX hit a 9 handle early on... bounced... then was pushed back down a 9 handle in the last hour...before rising once again...

 

Treasury yields were mixed today (long-end outperforming), echoing the month of October (2Y +11bps, 30Y +1bps)

 

With the yield curve starting to re-accelerate flatter...

 

The Dollar Index surge in October but has fallen the last 3 days...

 

Driven by slump in CAD (offset by strength in CNY)...

 

Bitcoin hit a new record high today after news of a Bitcoin Futures contract broke...

 

Copper and Crude ended October up 5.3% - oddly the same - with silver and gold stuck at the flatline...

 

Just one last thing... While US equity markets had a big October run... all the major US equity indices implied vols rose on the month... led by Small Caps...

 

And remember - October was all about China...