Squeeeeeeze.....
Another day, another massive short-squeeze
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Stocks are now up notably from The October FOMC last week...
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And up massively from the end of September lows...
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With stocks dramatically outperforming every other asset class since The September Fed Fold... (notice gold and oil retraced to unchanged since then)
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* * *
But back to this week, Futures show the real moves best once again as we drifted lower overnight, only to ramp face-rippingly as US opened..
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In Cash Indices, Small Caps (the dominant short squeezeds) is notably outperforming...
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VIX held 14 again and bounced dragging stocks lower at the close....
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We warned yesterday that VIX was decoupling...and today it decoupled even more...
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And credit market professionals are aggressively protecting also...
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Crude replaced USDJPY after Europe closed as the driver of stock algo correlations...
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Treasury yields continue to surge higher non-stop all day... 30Y topped 3.00% and 10Y topped 2.20% to 7 week highs... But bear in mind that bond yields remain lower than at the September FOMC meeting (with 30Y -8.5bps)
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The USDollar surged until Europe closed then dumped (with a small blip when Draghi spoke)... EUR back to a 1.09 handle...
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Commodities were extremely active with crude and copper surging as PMs were dumped...
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Crude ramped back above $48 (from below $43 last week), ran its stops and then faded...
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And Copper ripped...
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Lumber contionues to slide after last week's ramp (and longer-term sends very dismal signals)...
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Charts: Bloomberg
Bonus Chart: A reminder why we rallied - and why The Fed says it will raise rates - because the economy is doing so well...
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