Fear - or no fear. VIX was monkey-hammered to fresh cycle lows at 10.34 today (still double-digits for now) [9]and OPEX lifted US equity markets (Dow Industrials, Transports, and S&P) to new record highs. Notably European peripheral bond spreads jumped higher (worsened) by their most in 15 months this week. "Most shorted" stocks rose a massive 4.6% this week (surging this afternoon) - the biggest squeeze in 14 months. The USD lost ground (-0.4% on the week) led by EUR strength as JPY closed unch (hardly supportive of the 2% gain in the high-beta honeys this week). Treasuries were nothing like as exuberant as stocks this week (30Y +3bps, 5Y unch) having traded in a 10-11bps range all week. The ubiquitous late-day VIX slam forced stocks to all-time highs. Precious metals had their best week in 4 months closing above $1300 (gold) and $20 (silver) back at 2 and 3 month highs respectively and pushing gold above the S&P year-to-date.
Gold +9% YTD,Silver +7.1% YTD, S&P +6.9% YTD, 30Y Futs +5.55% YTD
[10]
Trannies were trumped by the Russell 2000 as the small-cap momo all-clear takes hold...
[11]
As the squeeze continues...
[12]
with the biggest week for a short squeeze in 14 months...
[13]
Today's OPEX makes comparisons hard but the trend in VIX today was towards 'hedges' as opposed to risk-addition...
[14]
Gold and silver had quite a week... (their best in 4 months)
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Treasuries traded in a 10-11bps range this week but closed nearly unch...
[16]
FX markets saw EUR strength (USD weakness but JPY close unch...)
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But as @Not_Jim_Cramer noted - JPY is on borrowed time...
[18]
Charts: Bloomberg
Bonus Chart: When the S&P 500 has been this rich to the fed balance sheet in the past, its has corrected...
[19]
