"Most shorted" stocks rallied their most in 10 weeks. Despite AAPL's tumble (and Seagate), the NASDAQ ended the day green along with the rest of the major US indices as the Dow broke its 5-day losing streak. Stocks in general recovered from the pre-Taper levels but remain notably down on the year. Most of the day's gains occurred in the first hour of the day as "most shorted" names were ripped higher (+1.8% vs the market's +0.75% at 11ET) which helped the Trannies outperform. The USD oscillated once again but ended practically unchanged (on the day and week) as AUD strengthens and JPY weakens providing just enough support to hold stocks higher. The USD stability was entirely missing from commodities which cracked around teh durable goods data with oil surging and bullion bulls purging. Treasuries were mixed but practically unchanged (despite some notable volatility around the Dur Goods data) with very modest steepening. VIX dropped 1.6vols to 15.8% - its biggest drop in 6 weeks.
This was a squeeze day... "most shorted" stocks rallied by thei rmst in 10 weeks...
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This is only the 4th day in thelast 4 weeks when all the major indices are green together... as the Fed hope for tomorrow remains... The short squeeze this morning lifted everything (led by Trannies) then once Europe closed we trod water..
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Stocks remain notably weak on the year...
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Treasuries rallied instantly onthe weak durable goods data; fade dback during day and leaked stronger nto the close...
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Commodities were cracked around the durable goods data...
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Charts: Bloomberg
Bonus Chart: AAPL dead cat bounce...??
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