What do you do when there are some of the biggest and most catalyzing events in recent years waiting just around the corner? Why you buy stocks of course with both hands and feet... The Dow gained around 3% on the week - its best since the first week of January - outperforming its higher-beta peers (as AAPL lost over 6% for its 3rd worst week of the year). This was the lowest non-holiday week volume of the year. It seems weak retail sales and a collapse in confidence also spurred buying (and yet more short-covering: Shorts +0.5%, RUT +0.17%) and the opposite-world of QE rules the day/week (until next week perhaps). Bonds rallied (best week in 4 months), the USD dropped its most in a month, and VIX had its biggest weekly drop in 6 weeks. Gold and Silver were clubbed like baby-seals this week until lunchtime today - when they started to surge green on the day.
This is the new normal...
- "Most Shorted" stocks +3.9% - best week in 5 months
- Dow +3% - best week in 8 months
- Homebuilders ETF +4.3% 3rd best of the year
- AAPL -6.3% 3rd worst week of the year
- VIX -1.5vols biggest drop in 6 weeks
- Gold -5.7% 2nd worst week of the year
- Silver -8.25% 3rd worst week in 2 years
- 5Y and 10Y Treasury yields fell 4bps the most in 2 months
- USD -0.85% biggest weekly drop in a month
- GBP +1.6% 2nd best week in 17 months
- WTI Crude -2.3% biggest weekly drop in six weeks
Another squeeze day in shorts saved us from a red close after the terrible data this morning...
which helped hold everything up today though the Dow is the big winner...
And while stocks were exuberant, gold and silver were not - until the afternoon that is...
Treasuries were very volatile this week but ended nicely green (lower in yields..)
And FX markets were noisy with the USD sliding all week (and GBP the strongest of the majots)...
Bonus Chart - AAPL closed below its 50DMA at the lows of the day...