Stocks Shrug At Global Disorder, Squeezed Back To Record Highs

Tyler Durden's picture

Just imagine how high stocks would be if more jets were shot down in Ukraine, more ground operations were unleashed in Gaza, more sanctions were placed on global growth, more European and US macro data disappointed, more job cuts at major firms, and more European banks declared bankruptcy. Today's farcical Friday surge (with the Nasdaq up 2% from its overnight lows and 30 point rip in the S&P) appears 100% based on the squeezing of "most shorted" stocks (best day in over a month) and the ramping of AUDJPY.  Credit markets ignored the idiocy; Treasury markets ignored it; The USD went nowhere (after EUR dumped on Italy downgrade then recovered). Gold, Silver, and Copper all closed down 2-3% on the week (given back yesterday's gains) as Oil surged 2.2%. VIX dropped over 2 vols to close with a 12-handle (but disconnected notably from stocks at the close). It's not all ponies and unicorns though - Biotechs are down 5% from Yellen's comments and the Russell 2000 closed red for the 2nd week in a row (and still -1% year-to-date). Best Dow Friday in 5 months (up 11 in a row).

 

 

What Jet shot down? What Israel incursion? Stocks scrambled up to unch from the Ukraine headlines...

 

Quite a run off the lows...

 

On the week, The Russell was the biggest loser... and Trannies got the all-clear from Yellen...

 

A marketwide squeeze lifted stocks back near record highs...

 

And AUDJPY provided the ignition...

 

VIX was actively helping early on but disconnected notably into OPEX

 

Credit markets were not buying it...

 

Nor did bonds...

 

And Treasuries do not appear to have bought bacxk into the growth meme...

 

Commodities were mixed this week with Copper, Gold, and Silver losing their gains and closing oddly toghether down around 2-3% as Oil surged over 2%...

 

What Italy GDP downgrade?

 

What was going on in VXX today? huge volume spikes...?

 

Charts: Bloomberg