Stimulus-Hyped Short-Squeeze Sparks Best Week For Stocks In 4 Months, USD Dumps

Between Fed promises and stimulus hype, the market keeps powering higher...

Since Trump's flip-flop on negotiating a COVID relief deal, stocks and gold have surged back and the dollar has weakened...

Dow rallied back into the green for 2020 (but despite its gains, the Russell 2000 remains red for the year)...

Source: Bloomberg

Dow 28,538 was the 2019 close...

On the week - the best for Small Caps since June - the Trump tweet dip is along-lost memory now...

All thanks to the biggest weekly short-squeeze in 2 months (and 'most shorted' stocks have squeezed higher for 10 of the last 11 days)...

Source: Bloomberg

Despite the gains, election uncertainty resurged this week...

Source: Bloomberg

Banks soared in their best week since June...

Source: Bloomberg

Airlines flip-flopped more than Kamala Harris, but ended the week notably higher...

Source: Bloomberg

Biggest 2-week drop in the USD in 4 months...

Source: Bloomberg

The Chinese yuan soared today as they came back from Golden Week...

Source: Bloomberg

Cryptos chopped around this week, but ended higher...

Source: Bloomberg

With Bitcoin back above $11,000...

Source: Bloomberg

Treasury yields were higher on the week, with the curve steepening (30Y +9bps, 2Y +2bps)...

Source: Bloomberg

But notably, the big move was Monday and since then 10Y Yields have largely traded in a tight range...

Source: Bloomberg

Best week for WTI since June, eased off a little late on after Norway oil sector strike was called off...

Gold, meanwhile, has concluded that the now-imminent debt binge will indeed crush the dollar, sending capital pouring into safe havens. This sent gold to its best day since Aug 17th...

Copper also had a big rebound this week...

Finally, don't worry about this...

Source: Bloomberg

Or this...

Source: Bloomberg

And before everyone writes off President Trump's chances, he is positioned considerably better against Biden than he was against Hillary at the same point...

So what happens next?

Source: Bloomberg