We made new all-time highs in stocks (easy); corporate and sovereign credit risk has been crushed to pre-crisis levels (passe); but the big kahuna was signalled today as we 'closed' above Dow 15,000 giving the red light to millions of the investing public that the water's warm (and asset-gatherers hungry). It seems no news is the best news (better than bad news and way better than good news) as for the 18th Tuesday in a row, we close green. The Dow Industrials may grab the headlines but the Dow Transports is up a mind-numbing 5.1% from Friday's NFP print (with the rest of the majors up a mere 1.7% or so). But... volume was below average; the 'most-shorted' names actually underperformed; VIX closed notably green; on-balance-volume was not supportive; credit markets pulled back notably today; JPY carry was not at all supportive today; and Treasury yields stalled their rise in the last hour.
Trannies are ridonculous...
[3]
but the security-to-slap-happy rotation is clear...
[4]
But - it was hedged hard this afternoon...
[5]
and credit wasn't buying this ramp...
[6]
and Treasuries didn't follow through this afternoon...
[7]
ands the shorts actually had an up-day - 'most shorted' names actually closed in the red and weren't forced to another squeeze/cover...
[8]
as it seems the forced cover has 'normalized' for now...
[9]
Charts: Bloomberg and Capital Context
Bonus Chart: Reminder from last night - the credit bubble...
[10]