Image Source: UnsplashDespite China’s ‘heroic’ measures to save its stock market, US (and European) equities were less than impressed…Source: Bloomberg…the yuan strengthened to 7.01/USD (strongest vs USD since May 2023)…Source: Bloomberg…and that sent the dollar index lower…Source: BloombergDomestically, bad news was bad news… consumer confidence crashed, home price appreciation slowed, and Richmond Fed manufacturing survey collapsed to COVID lockdown lows all sparked the biggest drop in ‘soft’ macro data since April…Source: Bloomberg…which pushed rate-cut expectations (dovishly) higher for 2024 (above 3 more rate-cuts expected now), while 2025 cuts remain flat-ish around 4 cuts…Source: Bloomberg…and while other asset classes were moved on this, gold shone most, surging up to a new record high above $2650…Source: BloombergThis is gold’s best YTD performance in at least 30 years…Source: BloombergThe US equity open saw immediate selling pressure but BTFD-ers stepped in to rescue stocks with Nasdaq outperforming (as the other majors clung to unchanged/small green on the day)…The basket of Mag7 stocks shows the day’s big swing most clearly…Source: BloombergMost Shorted stocks also had a turbulent day… surging higher at the open only to be monkey hammered to the lows of the day before a panic-bid squeezed it back to the highs…Source: BloombergTreasury yields were lower across the curve with the short-end outperforming (but the day was a rollercoaster with overnight selling erased by US session buying in USTs)…Source: BloombergThe yield curve continues to steepen with 2s10s now at +20bps – its steepest since June 2022…Source: BloombergCrude prices bounced back from yesterday’s weakness (thanks to China) with WTI topping $72 – the highs of the month…Source: BloombergBitcoin rallied up to $64,000 intraday – but remains somewhat rangebound…Source: BloombergAnd finally, still wondering why stocks just won’t stop rising despite all the ‘fears’…Source: BloombergWonder no more – it’s not the economy, its global liquidity, stupid! And the Chinese just primed the pump for even more.And if you are looking for a way to play that surge in liquidity that isn’t already priced in…Source: BloombergBitcoin is ready to move.More By This Author:US Consumer Confidence Plunges Most In 3 Years As Labor Market Weakens SignificantlyMarkets Calm Ahead Of Macro Storm, But…Key Events This Week: Core PCE, GDP, Durables And Fed Speakers Gallore