Yield Curve Crash Continues As Stocks Surge On Biggest Short-Squeeze In 11 Months

Tyler Durden's picture

Ignore gold, ignore earnings expectations, ignore the dollar, ignore the yield curve... and...


German stocks sum it all up... Buy The F**king German Government Crisis... (even as EUR stays weaker)


Record Highs all around in 'Murica...


As once again the European Session (green boxes) cominated the ramp...


As VIX was slammed back to a 9 handle...


Here's a couple things though...


The last 5 days have been quite a ride for 'shorts'... as "Most Shorted" stocks have soared over 6% - This is the biggest short-squeeze since Dec 8th 2016 (which was followed by a 6% decline)


High yield bond prices rose once again but remain below the 200DMA for the 11th straight day (the longest period since Q1 2016)


But the ultra-sensitive Small Caps love the tiny relief in HY...


Treasury yields were mixed oncoe again as the long-end rallied (30Y -2bps) and short-end was sold (wY +2bps)...


For the first time since early Nov 2007, the spread between 2Y and 30Y Treasury yields has crashed below 100bps...


In fact the yield is crashing this year at the fastest rate in at least a decade...


The Dollar Index declined once again...


Bitcoin surged to yet another record high...


WTI/RBOB rallied today ahead of tonight's API data...


Gold and Silver held on to early gains today but faded in the afternoon...


And here is why stocks are rallying to record highs... because earnings expectations are tumbling, silly!!

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Hammer823's picture

Just look at that flatline across. Not even a hint of volatility is allowed to interfere with the preprogrammed rally. Funny how there isn’t any volatility at all. When is the last time you saw the indexes DROP all day long and then freeze at the low for the rest of the day? The US stock market is the most rigged market in the world.

BlueHorseShoeLovesDT's picture

Go easy on him, he just figured it out and is having a moment.

Traderone's picture

Hope you had a good one Blue, it can be difficult mentally to buy a gap up but there was just no sellers to speak off so I held my nose and jumped right in. Not my favourite way but needs must. Laters.

BlueHorseShoeLovesDT's picture

I did, it is that time of the year, no sellers, no volume. Have a good one.

QueeroHedge's picture

Freshly squeezed zerohedger mm mm


Don't worry guys it's all coming down next week here is a pretty doom graph and another since lehman stat for you. 

4shzl's picture

All I hear is chatter
That the curve is getting flatter
But to the cats getting fatter
It really doesn’t matter

JohnGaltUk's picture

I watch the Italian and Spanish bonds every day and they are the most risky pieces of crap I have ever seen.


Iconoclast421's picture

CTRL+P wins again.

D.r. Funk's picture

Day of reckoning is coming.



SUB 11 VIX forced artifice, Seemyfinger


3% DRAWDOWN LAPSE closer to ending


ADDITIONAL LEG closer to ending


PROGRAMMED ATH PSYOP ' cant go forever '

BlueHorseShoeLovesDT's picture

When, pray tell, day you speak of coming?

BlueHorseShoeLovesDT's picture

You seriously need some new material, Mr. Fuck.

BlueHorseShoeLovesDT's picture

You work in TV, can’t you find good writers?

Whoops, I answered my own question.

Traderone's picture

You are consistent i'll give you that. Consistently wrong and consistently a Tool.  

BlueHorseShoeLovesDT's picture

A tool yes, but definitely not the sharpest one in the shed.

D.r. Funk's picture

1. Point to what's wrong

2. Tools are those trading the manufactured bubble. Doesn't work to call just the opposite, tools. How do you not see that.

Keltner Channel Surf's picture

"'The Emperor--so the story goes--has sent a message to you, the lone individual . . .
The messenger started off at once, but ... the royal capital city, the centre of the world,
is still there in front of him, piled high and full of sediment.
No one can force a way through that, least of all with a message from a dead man.
But you sit by your window and dream it all true, when evening falls."

Franz Kafka

Snaffew's picture

tools are the ones that believe this can go on forever and believe that valuations are at normal levels.  The rest try to trade/invest any way they can to make some fiat.  Whatever works for you to put some green in your account is fine, as long as you don't believe the story being sold and told.

Rainman's picture

Then there's TSLA up 3% as it continues to incinerate half million fiatscos an hour.

FreeShitter's picture

SQ is just a fucking beast....

Juggernaut x2's picture

Cuck Boy Dorsey can suck a Bag of Dicks 

bottom_line's picture

Somebody is short?

Keltner Channel Surf's picture

5'7" - but I make up for it via personality and a generosity of spirit

jamesmmu's picture

Bullish Sentiment Crashes, Searching ‘Sell Stocks’ On Google Just Hit Levels Not Seen Since 2008… Something Isn’t Right!


Ivan de beers's picture

While Tyler Alex jones Durden was selling doom and gloom conspiracy porn to zerohedge readers, millions of normal smart people grabbed the bulls by horns and kept faith in the stock markets and are smiling today while the gold and silver investors are crying and regretting.

D.r. Funk's picture

They never sold anything fuckhead. They sold the process. The chronicling of the process that -has- resulted in a CAPE level over what caused 1929. Guess what? They weren't wrong. They weren't wrong 6 years ago when they said a bigger boombust is merely what will be created.

normal smart people? you gotta be kidding

BlueHorseShoeLovesDT's picture

The gold and silver crowd are not doing that poorly, and they have a tangible asset. it is the idiots that go long leveraged Vix and Short levaged indexes that are crying.

Like the one below.

Pearson365's picture

Yup.  Bought in December last year.  Up over 10% YTD just like the year before.  Should be even better next year.  

Spectre's picture

So, you've been a member here on ZH for two weeks and you're a know-it-all.  Classic

adr's picture

Stock market volume and participation doesn't signal millions of people playing the great con. 

Pearson365's picture

Interesting gold BTC chart.  Whenever gold disconnects from BTC and plunges, within a couple of days gold seems to jump back up and be correlated with BTC again.

Quivering Lip's picture

I thought I'd seen it all in my 36 years of following equities, bonds and currencies until now. Countries that will never repay their debt with negative yeilds. Counterfeited fiat that is still accepted as payment. Equities that levitate daily with no end in sight on ALL "NEWS".

It really is amazing when every Etrade baby can make money buying NON GAAP cooked booked stocks.

It really does remind me of the dot com bubble when penny stocks pink sheet shell scams had market caps in the hundreds of millions.

When the powers that be pull the plug we'll see the NASDAQ  and R2K down 90% just like before. Until then the sky's the limit.

Wilshire almost 5000 Market cap to nominal GNP all time highs.

No inflation in these equity markets. 



Pearson365's picture

What kind of idiot would downvote you?

BlueHorseShoeLovesDT's picture

I see nothing, I hear nothing, I buy everything.

-Sgt Shultz

adr's picture

Nice $5.00 equivalent move in RBOB on less than a dollar in CL1. No wonder gas sells for a $1 premium to a barrel of oil. $3.00 gas for Christmas. 

wattie's picture

Join the Global Class action fightback against gold/silver manipulation!


Investors from 18 countries around the world have signed up so far...will you?

Together we can end this.




GotGalt's picture

Everything truly is awesome!  Here is my new take on the classic rap hit, whatcha think?


VIX down

stocks up

That's the way I like to fuck!

/2Live Galt

razorthin's picture

It's clear the sentiment meter has not yet reached "bat shit crazy".