Shorts Squeezed Most In 11 Months As Russell Surges But Outperformed By Gold In H1

Tyler Durden's picture

Gold is the best performing asset in H1 2014 (just beating crude oil). The USA is the worst-performing macro-economy in the world's majors in H1. The S&P 500 is up now 6 quarters in a row - its best run since 1998. The Russell 2000 had its best month since September but Trannies are leading the Dow by over 900bps year-to-date. "Most shorted" stocks had their 'best - biggest squeeze' month in 11 months. Gold and silver had great months. Today saw stocks rally then fade and bond yields rose then fell (down 1-2bps). The dollar slipped markedly on the day to 2-month lows as commodities surged (ex Oil) with Gold, silver, and copper all reaching multi-month highs (amid short-covering and CCFD unwinds). VIX closed the month higher.


June was quite a month for The Russell 2000 (best since Sept)...not so much the Dow...


As "most shorted" stocks were squeezed their most in 11 months!!


Year-to-date, Trannies are beating the Dow by over 900bps!


In H1 2014, Gold wins...


In H1 2014, USA's macro-surprise index is the worst... (yes worst!)


The S&P 500 has now been up 6 quarters in a row - its best run since 1998...


On the day... Stocks rose and fell... (seemingly not happy about GM)


Bond yields rose and fell...


Commodities surged (ex Oil)...


The USD was hammered today - its worst 2-day drop in months...


Charts: Bloomberg

Bonus Chart: GM "Total Recall" fallout...


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Soul Glow's picture

It looks like Janet loves the Russell almost as much as Bernanke.  What good lil' day traders they are!

kliguy38's picture

GOLD???? That barbarous relic. GET RID OF IT.........hehehehehe......sell it to me.... NO better yet let me store it for you........I'll keep it safe

Da Yooper's picture

I'll help you & take it for a boat ride

Soul Glow's picture

Gold?  That's just tradition.

Ron Paul, "Do you think gold is money?"

Ben Bernanke, "Nope."

Paul, "Why do central banks hold it?"

Bernanke, "Well it's tradion."

Paul Vs. Bernanke -
AccreditedEYE's picture

Actually, she doesn't... and let this stand as a BIG warning to any who read this and decide they going to take a shot at shorting this "biggest squeeze in 11 months" AKA burning $$$. Russell, usually the index direction leader, is UNDERPERFORMING for the year finishing YTD +2.52%. They are gonna rip this baby much, much higher to catch up to the big boys. Be sure to not be taken out to the woodshed.

quasimodo's picture

Que the metal hating algos in 3...2...1....

Ness.'s picture

This market is like watching an NBA game - no need to pay attention until the last 3 minutes.



The Most Interesting Frog in the World's picture

So, if this is like 1998, please don't tell me we have two more years of this shit....

SheepDog-One's picture

S&P declines a jaw dropping -0.73

dust to dust's picture

 Keep slamm'in the USD with that hammer.

disabledvet's picture

That's some real cheap energy still coming on line then...and a massive amount of coal that is on sale now as well.

Given the sunk costs in nuclear (mandating massive production just to justify maintenance) and now Teslas and Leafs (the latter having a new battery back on the way) and at some point the USA becomes a compelling energy export play.

Already the USA is selling massive quantities of diesel and unleaded fuel worldwide. Agricultural prices imploded today. That's historically a sign of a deflation...dead ahead.

Interesting stories coming out of Puerto Rico again. "That looks like default to me."

Rainman's picture

Book the 2 and 20, boyz, and prepare for portfolio realignment ! ...aka the 'shearing'.

disabledvet's picture

You could argue that exporting all electric vehicles is the equivalent of being an energy exporter actually.

Teslas are 100 DOLARES.

A price collapse in fuel in the USA does not seem outside the realm of possibility here. That's what happened to King Coal in the 1800's when Big Oil came roaring in. Energy prices in the USA completely collapsed and took a lot of other prices with them.

This led to a massive "2nd Industrial Revolution" from about 1890-1910...which completed the largest railroad network in the world (even today) and then began a series of hydro-electric projects out west and in Pennsylvania. This also laid the foundation for a road building boom that has by and large been completed now as well.

If gasoline prices suddenly drop to a buck a gallon here the wave of defaults that would hit the USA would be enormous.

nakki's picture

Who doesn't want to buy the Russell at 87x earnings on a non gaap basis? When this thing blows it's the QQQ bubble all over again.

Billy Shears's picture

Hate to beat a dead horse but where are the volume bars to go along with that record, six quarter rip in the 500?