EM Bloodbath, bond yields tumble, yield curve collapsing...but Nasdaq surging - "tread lightly" my friend

Video length: 00:01:04

The big headline maker of the day was not stocks but the FX markets as the dollar index exploded to 8-month highs (second biggest daily gain of the year) after a dovish Draghi sent EURUSD tumbling...

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This is actually the highest close for the dollar since July 2017...

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And despite numerous interventions, promises of intervention, and threats - Emerging Market FX was a bloodbath...

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Falling to its weakest since Feb 2016...

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The Mexican peso was mashed lower...

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3 additional swap auctions failed to hold the Real...

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Erdogan threats failed to hold the Lira...

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And IMF bullshit and promises of billions in interventions did nothing for the Argentine Peso which was clubbed like a baby seal...

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The peso has lost 96.5% of its value relative to the dollar since 2001.

And as the peso plunged so Argentine Century bond yields spiked to 9%... (price is now below 80c on the dollar)

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And before we leave the carnage...

Hugh Hendry has some advice...

Hugh Hendry's advice to Emerging Markets pic.twitter.com/o8cY1iOgaN

— zerohedge (@zerohedge) June 13, 2018

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Small Caps and Nasdaq managed to get back to green post-FOMC but the rest of the major indices are lower...

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Futures show the big divergence between Dow and Nasdaq as everything ramped into the open...

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Big banks underperformed Small banks post-FOMC...

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Tech stocks outperformed financials once again but stalled at previous resistance...

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Growth continues to top Value...

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Bonds rallied as stocks rallied today...

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Treasuries yields were mixed today with the long-end bid and short-end offered...

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Which crashed the yield curve to new cycle lows (flattest since Oct 2007)...

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10Y Yield pushed lower non-stop since topping 3.00% after The Fed yesterday...

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We covered the FX markets above but it's worth a glance at the EUR today... which collapsed from 1.1850 to 1.1590... the biggest daily drop since the Brexit vote...

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Because the world and his pet rabbit was long EUR...

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Cryptocurrencies saw a big rally today after SEC ruled that Ether was not a security and CBOE opened the door for Ether futures...

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But despite the best day in 3 months, cryptos remain ugly on the week...

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Sending Ethereum back above $500...

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Commodities were confused today with a soaring dollar accompanying big gains in crude and silver and gold pushing back above $1300 (as copper tumbled on weak china data)...

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Silver continues to accelerate relative to gold with Gold/Silver at its lowest since Thanksgiving...

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To summarize: US stocks are higher, because European stocks are higher, because Draghi crushed the Euro, because he sees growth ending...