The week summarised... as BofA put it -"It's Not A Risk-On Rally, This Is The Biggest Short Squeeze In Years" [4]
With China shut and The Fed going full dovish panic-mode over growth fears, world markets went crazy...
- S&P up 7 of last 8 days +3.2% - best week since Oct 2014
- Russell 2000 +4.5% - best week since Oct 2014
- Nasdaq up 7 of last 8 (since Death Cross) closed above 50DMA
- Trannies up 8 of last 9 closed above 100DMA +4.9% - best week since Oct 2014
- Dow up 8 of last 9 +3.5% - best week since Feb 2015
- "Most Shorted" +4.7% - biggest squeeze in 8 months
- Biotechs -2.3%
- Financials +2.2% - best week in 3 months
- Asian Dollar Index +1.4% (worst week for USD vs Asian FX since Oct 2011)
- Dollar Index -1.2% (worst week for USD vs Majors in 2 months)
- AUD +4% - best week sicen Dec 2011
- 2Y TSY Yields +6.5bps - biggest rise in 7 weeks
- 5Y TSY Yields +11bps - biggest rise in 4 months
- WTI Crude +8.9% - 2nd best week sicne Feb 2011
- OJ +4.8% - best day since March
- Silver +3.8% - best week since May
LOLume!!
[5]
The last 8 days have seen a massive short-squeeze... 2nd biggest in history
[6]
The last 2 times stocks were short-squeezed this much, did not end well...
[7]
And the following stunning chart shows the percent of S&P 500 names above their 50-day moving-average has soared from 4% to 60% in a few weeks...
[8]
h/t @ReformedBroker
* * *
Off the Payrolls lows, it's been non-stop...
[9]
Credit tracked stocks all week but decoupled this afternoon...
[10]
VIX has fallen for 9 straight days... the longest streak since Oct 2011..
[11]
Energy stocks outperformed and Healthcare (Biotechs) were the laggards...
[12]
Treasury yields surged all week but Friday saw the push slow a little... (everything but 2Y is now higher than pre-payrolls)...
[13]
The USDollar Index slipped notably after the FOMC Minutes but had been weaker all week... (AUD rose 3.8% on the week)
[14]
Commodities all rose on the week
[15]
Crude had its 2nd biggest week since Feb 2011...
[16]
Gold broke notably above its 100-day moving-average and Silver had its best week since May (breaking but not holding its 200DMA)...
[17]
But The Ags were the biggest movers today after USDA forecasts sent everything crazy... (and Orange Juice had its best day since March)
[18]
Finally, it appears stocks have decided to re-de-couple from any fundamentals as Macro and Micro data has tumbled in recent weeks...
[19]
Charts: Bloomberg