Crypto Gets The Coal As 'Santa Claus Rally' Starts With Another S&P Record High

'twas the night before the Christmas, and all through the markets, not a person was stirring... but the f**king crypto algos were...

Source: Bloomberg

The rest of the markets were unsurprisingly quiet today with gold and silver inching higher after making new record highs overnight; bond yields inched lower; the dollar and crude oil trod water; and stocks trended very marginally higher (Dow outperforming while the S&P 500 hit another new record high)...

After two months of little cheer, US stocks have regained momentum for a strong start to the traditionally favorable Santa Claus rally period, which started today.

Source: Bloomberg

Since 1950, the S&P 500 has enjoyed an average 1.1% rally during the last five trading days of the year plus the first two of the next, Bloomberg notes. That easily outpaces the rolling 0.3% average gain over any seven-day trading period. It’s not always a given, as the chart below shows, but shares have risen more often than not, with gains in 54 of the past 75 years...

Source: Bloomberg

Mega-Cap tech extended its rebound gains to close at a record high...

Source: Bloomberg

VIX continued its bleed lower, now at the lowest since early Dec 2024...

And bond vol has collapsed even more - down at its lowest since before COVID (Jan 2020)...

Source: Bloomberg

Rate-cut odds were unmoved today (despite the strong jobless claims data) and bonds were marginally bid with yields down around 2bps on the day, leaving the long-end lower on the holiday-shortened week...

Source: Bloomberg

The yield curve (2s30s) continued to flatten after topping its steepest levels of early September...

Source: Bloomberg

The dollar ended lower for the third day in a row back to its weakest relative to fiat peers since Oct 1st...

Source: Bloomberg

Dollar weakness prompted gains for gold overnight (topping $4500 for the first time) before some selling pressure came during the short-day...

Source: Bloomberg

Silver topped $72 for the first time ever...

Source: Bloomberg

US Physical silver continues to trade at a premium to paper...

Source: Bloomberg

And the China physical premium is extreme to say the least...

Source: Bloomberg

Crude oil inched higher, with WTI holding above $58.50 for now...

Source: Bloomberg

And copper continues to climb to new record highs...

Source: Bloomberg

Finally, we have never entered the seasonal Santa Claus Rally with valuations this rich...

...bah humbug!

Happy Christmas to all our readers - enjoy tomorrow's break from the chaos (and don't check your crypto). See you Friday!