NATO threats to Russia - storm in a teacup. ISIS and Iraq airstrikes - transitory. Israel-Hamas un-cease-fire - fuggetabaadit. This was the week to buy stocks... the riskiest, most overvalued growth-oriented stocks. GDP downgrades - no sweat. Russell 2000 surges to its best week in the last 8 (up 1.5%) while Trannies closed lower for the 2nd week in a row - the first time in 6 months. The Russell rallied perfectly up to its 50-day moving-average. S&P, Dow, and Nasdaq scrambled back to around unch on the week on the back of a tweet and a 4-day-old piece of news... bonds and FX did not. Gold closed the week up 1.3%, back over $1,310 (but silver closed down 1.8%). Oil ended modestly lower (as did copper). Treasury yields saw safe-haven buying and fell 5-7bps on the week (but well off the week's lows -15bps). "Most shorted" stocks rose 1.3% today - best in almost 4 weeks (and biggest weekly squeeze in 2 months).
And this is what happened after cash markets closed...
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This was The Dow's best Friday since January (up 12 of last 14 weeks).
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Quite a week for stocks...
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But it seems geopolitical risk is a BTFWWIII opportunity... (notice the afterhours dump as cash closed though)
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As "Most shorted" stocks got the treatment once again (squeezed on EVERY open)
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EURJPY was in charge for most of the day but even that gave up when stocks went full bulltard...
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And VIX gave up on stocks too... (though did get slammed into the close on the 4-day-old news...)
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Stocks have it all fuigured out but bonds remain less excited...
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Treasury yields ended the week lower.. but bonds sold off as equities rallied this afternoon...
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Gold ended the week higher, silver lower and oil down...
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Charts: Bloomberg
Bonus Chart: TKMR exploded on Ebola news...
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