Short-Squeeze Sparks Small-Cap Buying-Panic, Bitcoin Nears Record High

Overnight gains evaporated across the US cash open this morning - erasing all of the Moderna vaccine gains - but around 10amET, the boot of the short-squeeze army stomped on the throat of small-cap-sellers and sent the index soaring dramatically higher on the day (while the rest of the majors lifted only modestly to end unchanged from MRNA's headlines)...

The melt-up in Small-Caps was driven in large part by yet another massive short-squeeze...

Source: Bloomberg

Most-Shorted Stocks are up 10 of the last 12 days...

Source: Bloomberg

The jump in Small Caps hit as the ratio to Nasdaq found support...

TSLA soared over 13% at one point today on news that it will be added to the S&P 500, but after tagging the highs from mid-Oct, Musk's piggybank started to fade...

Major decoupling occurring between momo/value stocks and TSY yields...

Source: Bloomberg

Despite stock gains, and a heavy calendar, bonds were bid, with yields now lower on the week (seemingly unimpressed by MRNA's vaccine)...

Source: Bloomberg

It seems the message from Bonds to vaccine-hypers is simple...

10Y was back below 90bps and 30Y erased all of the losses from yesterday's vaccine news (NOTE, 30Y yield found notable resistance at 1.75%)...

Source: Bloomberg

The Dollar drifted back to pre-Pfizer-vaccine spike levels, still well down from the election...

Source: Bloomberg

But it was Bitcoin that made the big headlines - soaring near $18,000...

Source: Bloomberg

Bitcoin has only closed higher than this on one day in history (12/17/17)...

Source: Bloomberg

The surge in Bitcoin has run ahead of the global volume of negative yielding debt that it has traded with for the last two years...

Source: Bloomberg

WTI managed a small gain on the day, scrambling back above $41 ahead of tonight's inventory data...

Gold trod water around $1885 until The Senate voted to block Judy Shelton's nomination to The Fed...

Finally, the S&P has overtaken the rest of the world's majors YTD...

Source: Bloomberg

And as global stocks reach record highs, bonds ain't buying it at all...

Source: Bloomberg

Greed is back...

Source: CNN