Small Caps Panic-Bid On Massive Short-Squeeze As Crude Crashes... Again

Global stocks - according to the narrative du jour - got a bid from The BoJ's promise of yet more asset-buying...

But all that money printing did nothing for any real economy as crude prices collapsed with June WTI plunging to an $11 handle (this market is so fnorked - look at the manic ramp to $14.00 then dump)...

And so as stocks test 2-month highs, the real economy as evidenced by crude is collapsing...

Source: Bloomberg

And Earnings expectations are screaming lower...

Source: Bloomberg

Explained...

Oh that explains it... US Stocks surged on the back of another short-squeeze...

Source: Bloomberg

And a rotation into small cap as people appear to have listened to Goldman's mega-tech warnings...YES - that is the Russell 2000 up 4.5% TODAY before the late-day tumble...

This is The Dow's first 4-day win streak since early February.

FANG Stocks were sold as small caps soared

Source: Bloomberg

But Banks were panic-bid (GS now erased most of post-earnings losses)...

Source: Bloomberg

Russell's surge was driven by a rip higher in small cap financials - but be very careful - look where they turned around today...

Source: Bloomberg

VIX and Vol of VIX tumbled further...

Source: Bloomberg

The VIX term structure is no longer inverted...

Source: Bloomberg

Despite all the excitement, the Virus-Fear trade refuses to ebb back to normal levels...

Source: Bloomberg

Investment Grade bonds were sold today, HY flatish...

Source: Bloomberg

Yields remain notably decoupled from stocks still...

Source: Bloomberg

Treasuries were mixed with the short-end very modestly bid as the long-end was dumped...

Source: Bloomberg

The dollar dropped back today, erasing most of last week's gains...

Source: Bloomberg

But despite dollar weakness, the Brazilian Real collapsed...

Source: Bloomberg

Cryptos were mixed with Ethereum and Bitcoin higher and Litecoin and Bictoin Cash lower...

Source: Bloomberg

In commodity-land, gold and silver were slightly lower, copper higher and as we noted above, crude was clubbed like a baby seal...

Copper bounced off 2.32...

 

And finally, as @Not_Jim_Cramer illustrates, today's final regional Fed survey suggests PMI is about to be a bloodbath... nope no v-shaped comeback imminent here in any hope-driven soft survey...

Source: Bloomberg