Dow Tops 19,000 As Small Caps Panic-Squeeze To Longest Winning Streak In 20 Years

Tyler Durden's picture

So to summarize: stocks are at all time highs on a Trump plans that nobody has any clue what it will be like; and oil is surging on an OPEC deal that earlier today was not happening, but which Iraq is now happy about, implying it won't have to cut and Saudi Arabia will throw up  over everything


On the day, stocks opened higher then rolled over into the European close before surging higher for the rest of the day... and then Complete and Utter panic buying in the last few minutes of today...


Dow 19k...


S&P 2,200...


VIX was pushed lower once again to try to ensure the big figures for the Dow and S&P...


Russell 2000 up 13 days in a row - the longest streak since February 1996... (so much for the random walk)


For those thinking about "valuations" - silly-billies...


And the less aggressive EV/EBITDA shows Small Caps trading at double their 'norm' valuation...


The last time all the major indices closed at record highs on the same day (apart from yesterday)...


Which deserves its very own video...


"Most Shorted" stocks have now risen for 12 of the last 13 days - the biggest short squeeze since the March 2009 lows...


While The Dow is doing great post-election, we note that Goldman Sachs alone accounts for 27% of all the gains...


Small Caps don't seem to care that their cost of funding has surged...


HYG (HY Bond ETF) rallied to a crucial intersection of 50- and 100-DMA...


The long-end continues to outperform...


The Treasury Curve steepened modestly today after plunging for 10 days...


Not flashing the same bullish signal that bank stocks believe in...


US Financials credit risk pushed on to one-month highs... desite the exuberance of shareholders...


The Dollar Index declined for the 2nd day in a row...


Gold, Silver, Copper, and Crude are all higher on the week...


The crude complex was complete chaos today as OPEC headlines were all that mattered ahead of tonight's API data...




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TheVoicesInYourHead's picture

The SNB(Swiss national bank) is printing fast and furioy and buying everyrhing in the USA.

This can go on forever.

thesonandheir's picture

SNB should carry on then until Trump tells them to fuck off.

King Tut's picture
King Tut (not verified) thesonandheir Nov 22, 2016 4:13 PM

Sure- because appointing Mittens as SecOfState means Trump is such a rebel.

KnuckleDragger-X's picture

We've had Clinton and Kerry for the last eight years. Mitt may be squishier than a bowl of Jello, but at least he doesn't have to take his shoes of to count above ten. Besides, talking to Mitt isn't the same as appointing him SoS.....

Keltner Channel Surf's picture

Basically, you have two choices:  either buy a ‘Swiss language’ Rosetta Stone course … or just watch all the French films Irene Jacob made while in her twenties.   I’ve got a few of the latter on DVD, so I’m good.

Abbie Normal's picture

Do they make Rosetta Stone courses for Canadian, Australian, American languages too?

Isn't Swiss just Italian, French, German, depending on where you live?

Keltner Channel Surf's picture

Did you notice the quotation marks?  Do they give you a clue as to whether I was serious?   Does the fact that I mention a Swiss actress in French language films provide the final clue?   Do I still need to answer your questions?  Good, I think everyone needs a holiday soon ...

King Tut's picture
King Tut (not verified) Nov 22, 2016 4:10 PM

"What goes up must never come down"- Janet's Revised 3rd Law of Motion.

AlexCharting's picture

Stuff of interest on my TRADER screen ;)

- Gold and Silver FAILS again to reclaim 5 DMA… this is getting pathetic! I am a bull sitting on the fence, and my butt is starting to go numb.
- South-Korea (EWY) and Emerging Markets (EEM) ate their spinach like popeye.
- TLT is beaten to a pulp, but we are seeing sings of life… thought about a call, but not yet ready to pull the trigger.
- Soybean Meal futures (/ZM) reclaims 200 DMA and continues to chisel out a rounding bottom.

PontifexMaximus's picture

They only have slightly above 10% of their reserves in the US stock market, so much mooooaaaar to go to make the chf weaker

Rainman's picture

Did you see that little dwarf NYSE carnival barker modeling his brand new Dow 19k hat ?


King Tut's picture
King Tut (not verified) Rainman Nov 22, 2016 4:22 PM

CNBC trots that ugly little fucker out on milestone days/big jumps- it's some type of Illuminati symbol that they are fully in control.

Raffie's picture

He probably had that hat few weeks ago because he knows he would be wearing it.

Wonder if he has his 20k hat yet or will soon.

They know exactly how high the markets will go.

marcus1922's picture

I guess as an engineer I am not market-savvy enough to understand why Goldman is spiking so much in the face of a movement that hates, among other things, Goldman and all it stands for.

I do know that if Hillary had been elected and Goldman was surging, the populists would be screaming.

What am I missing here?

Keltner Channel Surf's picture

Apparently, the bulk of their revenue comes from trading, with particular strength in fixed income, so in a period of historic bond moves in a compressed period, I imagine 'investors' are looking for a 4Q to match the improved 3Q vs. earlier in the year.

Aaronson.Jones.Rutherford's picture

Well if Volcker gets removed it's hi-ho Silver away. The good ol days of huge trading floors will be back in business & bonuses will be back with a vengence. Let the prop-trading good times roll... till the house falls down again.

Keltner Channel Surf's picture

Without question letting banks back into the game, assuming past oversight levels remain, isn't advisable, while on the other hand the improved liquidity, rather than rely on the new 'market makers' (aka non-bank HFTs), who had quite a bit of fun on Aug 24, 2015 (recall the 1000 pt early drop in which many ETF holders were screwed) doesn't appear to be working.  

Perhaps just getting silly central banks to stop crowding out real buyers/sellers in every known asset class is the real issue, but now I'm talkin' crazy-like ...

Citizen_x's picture


The markets went snowflake. It soothes the mass psyche.

Vix is low.  When volatility returns, micro size Aug 2015 may return.

Until then....longs our happy.

Keeping kick'n butt Capt.

Keltner Channel Surf's picture

I view your posts as a soothing form of financial haiku.  

Had an appt. today and missed a beautiful TNA long entry mid-day, and expect 'standard' algos to be turned off until Monday, so I probably won't trade much until then.

Can't believe people actually think pension funds all met and said "Trump!  Trump!  BUY, it's goin' to the Moon!"   Until IWM rockets at least 15% farther by X-mas, you and I know this is just a minor form of the 'pain trade' I spoke about last week, monthly Keltners are still holding firm, sure it could happen but nothing to get all bothered about just yet.  Enjoy your citizen holiday.

hedgiex's picture

Nice musings. The massacre of the HFs has largely been confined to the pretentious market makers mainly in the camps of "macro star gazers". Those who played with CBs largely did not get ass ripped. Sense that the Fed (not other CBs) with growing liquidity will be interfering less. BTW, the small cap is a challenge. Liquidity still strong for holds and no 'shorts' momentum for a juicy fall. Looks like a temporary parking lot in the rotations.  I think that if we get it right in this space, you get your meals. Too chicken to try for jackpots here. any advice? 

Keltner Channel Surf's picture

Excellent points, though I'd change your 'too chicken' to 'too smart', folks often see the crazy moves and think "if I'd have caught that" but in truth few traders caught it, as it was larger players suddenly reallocating, crushing shorts in still modest liquidity pre-holiday, and if you spent years developing your indicators to work with typical, usually mean-revert stuff, then the huge candles immediately post-Trump came out of nowhere. 

I always believe that when, after years of 'passive' dribbling in money, players who weren't 'active' in the sense of allocation suddenly change their bond vs. stock or large vs small tune, work-a-day trading methods, especially intraday, can be hazardous.  I'd say to wait till Monday to put on anything big, we should know quickly, not many shorts left, so unless we get a new push (i.e. increased equity allocation), we should see mean-reverters, once it settles, turn us back toward central moving averages.  The latter trade would be much easier once started, as it's familiar, while a big push up will likely be caught by those who simply buy each morning's gap with a tight stop, not something we often train ourselves to do.  Happy holidays!

Seasmoke's picture

Everything's green (except gold of course)  .... now I realize how a person goes insane. 

wmbz's picture

Best get your your DOW 20,000 hats. This bitch is going to da moon...Alice.

The fun-da-mentals are just totally awesome! It great fun watching an honest and open "market" at work.

Rainman's picture

This is Mr. Efficient Market at his vilest .... algoing  expectations to the King of Debt. Be a winner ! Join the Team !

John Law Lives's picture

Market cap to GDP to the moon!

What interesting times we live in.


Clock Crasher's picture

When this crashes in 50 years which at that time I will be dying from old age I'm going to laugh at everyone who bought into the borg-ian monstrosity. Or.. maybe they know that when Apple brings their money back its going straight into the stock market. Dow 125,000/Gold 125,000 -cliff high web bot This time its different, This time it might actually be a hyperinflationary meltup. Delist the VIX.

edit - I am still bearish but we have seen this before in the 80's thru end of dot com

1982-2000 s&p500 +1,400%

why not

1777's picture

Can we get more videos like this? You know, a couple charts and then a video and then a couple more charts and another video... I think it would be better...

Clock Crasher's picture

i dont think so, if you have something relevant to share just link it in your post.  seems to be acceptable norm here.

Clock Crasher's picture

I want to see Jasper from the Simpsons with Abe at Springfield elementary with his beard caught in the pencil sharpener featured on fed fail days.

YellenTheft's picture

Bears I steal all your money. Why do you never learn?I won't stop untilm the last bear has hibernated!

Kind regards

Janet Yellen

Clock Crasher's picture

I thought cash balances were at an all time low who are all these buyers and where did they get the money from?

U4 eee aaa's picture

algo's are all bidding a single share

adr's picture

What the fuck is Caterpillar doing 10% up? even further declines in sales is bullish?

I guess no component can be left behind. MUST BLOW BUBBLE LARGER!!!!!


jamesmmu's picture

if you short today or next week, you can get rich in 10 days. lol

Clock Crasher's picture

DOW 19,000 = PSYOP

DrData02's picture

Hey Tylers, since EVERY post is posted with 'new' in front of it, why not just drop the 'new' or find a way for us to post something that is old.

Clock Crasher's picture

option to turn on a subtle grey-fade-over old posts button

RayKu's picture

Too much, too fast, with no real support. Pump and dump comes to mind.

Clock Crasher's picture

set up for optimal failure.

most expensive stock market in history relative to margin debt.

what happens when the carrying cost of that debt becomes painful?

what happens when the debt preformance section of the balance sheet falls apart?

I think we all know the answer -more all time highs of course.

CHoward's picture

'Happy days are here again..."


Not since Lehman!

NDXTrader's picture

It's getting way too bullish here on ZH, about the time they usually pull the rug. Surely almost everyone is on the "right" side of the boat now

ElixirMixer's picture

Bought OTM puts and calls on the S&P. Not sure which way this goes from here, but I'll take my chances that it doesn't stay flat.

thesonandheir's picture

Flattish thru end of year.


2222 top.


1750 new year low.

RawPawg's picture

This Is What It Sounds Like When Silver(in hand)Cry's.