Dow 13,000 Regained On Lightest Volume Day Of The Year

Tyler Durden's picture

Hope for a Greek deal (which solves what exactly?) and a better than expected German IFO are the excuses for today's circa 1% spurt in stocks capping a 5-percent-plus jump off Friday's over-short lows. The best 5-day run in four months for the S&P 500 occurred with the lowest average weekly volume of the year - and as we noted earlier, amid one of the biggest short-squeezes we have seen. Correlations across asset classes rose significantly but it seemed EURUSD (and Gold) was as responsible as anything for today's magical carpet ride - especially the little dose of magic into the close. Treasuries trod water - completely ignoring equity's excitement. Silver and Gold popped notably (playing catch up to USD and stocks), as did Oil, with the USD sliding (-1.25%) non-stop on EUR strength (+1.85% on the week!). Have no fear, retirement is back on - Dow 13,000 is back with us... (but it appears, for now, the squeeze-ability is over)

 

Low volume, check! Rampapalooza, check! Technical Level to pin it on, check! And in case you were wondering - unlike Weds/Thurs trade size - today's average trade size was considerably larger (with some significant blocks going through into the close - pros fading the surge once again?)

 

Today was 'correlation' day...

 

... Gold snapped up to USD/Stocks weekly move and clung to them for the rest of the day... Gold still small winner YTD over stocks... Treasuries did not partake this time...

 

 

 

S&P 500 futures have retraced to pre-election levels...amid dismal volume (lower pane)

 

Commodities were in a frenzy once stocks opened...

 

 

Charts: Bloomberg and Capital Context

Bonus Chart - as a reminder - here is why the short-squeeze ammo is run out for now...

 

Bonus Bonus Chart: AAPL will be tested on Monday - we surge up 1.75% today with a huge push in the late day to regain that critical swing high and low around $571 (again with significant volume and block size). VWAP support still seems to be around $563 and we suspect (given volume patterns) that a close above $575 will signal a push higher, until then we are biased short.

 

and also on AAPL - on 2/12/2008, the 50DMA crossed below the 100DMA (with a downtrending 100DMA) and the stock lost over 10% in 2 weeks. Today - the same occurred... and average trade size was large today in AAPL (suggesting real money moving) just as it was at the peak-day...