Huang-Over: Stocks Jump, Oil Dumps After Weekend Of 'Fear And Loathing'

Tl;dr: The market's split personality over the last few days brought an analogy to mind. Just as Hunter S. Thompson hunted the American Dream, finding only the wreckage of the '60s; the drug-fueled run up in 'everything-AI' came to an abrupt halt last week and the weekend was full of 'fear and self-loathing' articles discussing just how bad shit was (with Jensen's huangover the tipping point, NVDA -4.5%). But from those ashes of despair (extremely washed-out positioning and leverage lows and spiking panic highs) rose the triumphant dip-buyers with stocks soaring (short squeeze) off overnight lows (DOW, SPX, & RTY erasing post-election losses). Why the bounce? Anyone's guess (same as the night of the election - as bad as it gets? - but Trump's dovishness on Iran strikes helped and IAEA rumors slammed oil). Credit spreads compressed, TSYs mixed (short-end lagging), and the dollar dipped as bitcoin volatility spiked.

All-in-all, another of those surreal days (in markets and headlines) with nothing to pin the early panic-buying action on but the fever dream analogy is almost too clean...