Small Caps Surge To Best Week In 2014

Tyler Durden's picture

The US Dollar, gold, and oil closed the week unchanged... Treasury yields rose 6-8bps on the week... and the Russell 2000 had its best week in 2014... Sure, why not? VIX was crushed back to a 10-handle as managers lifted hedges and the Tepper-induced short-squeeze from yesterday followed through (+2.5% against a 1% rise in the S&P). The Dow and S&P 500 both closed at record highs (notably rich to the Fed balance sheet). Volume was 20% below average (and that was a payrolls day!). Copper tumbled over 2% - its worst week in 3 months as China's warehouse probe continues.  VIX closed at its lowest close since Feb 2007 (and once again the strange shadowy figure of massive after-0hours volume spikes in VXX appeared).

 

The Russell had its best week in 2014...

 

Which lifted it into the green for 2014...

 

The Short squeeze followed through this morning to lift the S&P to within a fraction of 1950...

 

VIX surged lower to close at its lowest print sincxe Feb 2007...

 

And once again a strnge massive volume hit in the after hours... (as we suspect dark pools flushed their visible hand of the Fed pressure into the markets at VWAP)

 

Treasury yield caught UP to stocks but are decoupling once again in thelast 2 days...

 

The bond market was quite volatile this week as the headlines smacked it around but ended higher by 6-8bps...

 

Copper was smacked lower on the back of China shadow banking probes, silver outperformed and oil and gold ended close to unch...

 

After all the headlines, all the vol, all the machinations... the USD closes unch on the week...

 

 

Charts: Bloomberg

Bonus Chart: We have seen the mysterious massive finger of god in VXX tradig before... the week of The Fed minutes... Someone desperately wants the world to see vol dropping and thus stocking popping on these important to maintain the status quo weeks...