Dow Surges To Best Friday Since January Amid Geopolitical Chaos

Tyler Durden's picture

NATO threats to Russia - storm in a teacup. ISIS and Iraq airstrikes - transitory. Israel-Hamas un-cease-fire - fuggetabaadit. This was the week to buy stocks... the riskiest, most overvalued growth-oriented stocks. GDP downgrades - no sweat. Russell 2000 surges to its best week in the last 8 (up 1.5%) while Trannies closed lower for the 2nd week in a row - the first time in 6 months. The Russell rallied perfectly up to its 50-day moving-average. S&P, Dow, and Nasdaq scrambled back to around unch on the week on the back of a tweet and a 4-day-old piece of news... bonds and FX did not. Gold closed the week up 1.3%, back over $1,310 (but silver closed down 1.8%). Oil ended modestly lower (as did copper). Treasury yields saw safe-haven buying and fell 5-7bps on the week (but well off the week's lows -15bps). "Most shorted" stocks rose 1.3% today - best in almost 4 weeks (and biggest weekly squeeze in 2 months).

 

And this is what happened after cash markets closed...

 

This was The Dow's best Friday since January (up 12 of last 14 weeks).

 

Quite a week for stocks...

 

But it seems geopolitical risk is a BTFWWIII opportunity... (notice the afterhours dump as cash closed though)

 

As "Most shorted" stocks got the treatment once again (squeezed on EVERY open)

 

EURJPY was in charge for most of the day but even that gave up when stocks went full bulltard...

 

And VIX gave up on stocks too... (though did get slammed into the close on the 4-day-old news...)

 

Stocks have it all fuigured out but bonds remain less excited...

 

 

Treasury yields ended the week lower.. but bonds sold off as equities rallied this afternoon...

 

Gold ended the week higher, silver lower and oil down...

 

 

Charts: Bloomberg

Bonus Chart: TKMR exploded on Ebola news...