Stocks Soar To Best Week In A Year On "Mother Of All Short Squeezes"

The week summarised... as BofA put it -"It's Not A Risk-On Rally, This Is The Biggest Short Squeeze In Years"


With China shut and The Fed going full dovish panic-mode over growth fears, world markets went crazy...

  • S&P up 7 of last 8 days +3.2% - best week since Oct 2014
  • Russell 2000 +4.5% - best week since Oct 2014
  • Nasdaq up 7 of last 8 (since Death Cross) closed above 50DMA
  • Trannies up 8 of last 9 closed above 100DMA +4.9% - best week since Oct 2014
  • Dow up 8 of last 9 +3.5% - best week since Feb 2015
  • "Most Shorted" +4.7% - biggest squeeze in 8 months
  • Biotechs -2.3%
  • Financials +2.2% - best week in 3 months
  • Asian Dollar Index +1.4% (worst week for USD vs Asian FX since Oct 2011)
  • Dollar Index -1.2% (worst week for USD vs Majors in 2 months)
  • AUD +4% - best week sicen Dec 2011
  • 2Y TSY Yields +6.5bps - biggest rise in 7 weeks
  • 5Y TSY Yields +11bps - biggest rise in 4 months
  • WTI Crude +8.9% - 2nd best week sicne Feb 2011
  • OJ +4.8% - best day since March
  • Silver +3.8% - best week since May



The last 8 days have seen a massive short-squeeze... 2nd biggest in history


The last 2 times stocks were short-squeezed this much, did not end well...


And the following stunning chart shows the percent of S&P 500 names above their 50-day moving-average has soared from 4% to 60% in a few weeks...

h/t @ReformedBroker

*  *  *

Off the Payrolls lows, it's been non-stop...


Credit tracked stocks all week but decoupled this afternoon...


VIX has fallen for 9 straight days... the longest streak since Oct 2011..


Energy stocks outperformed and Healthcare (Biotechs) were the laggards...


Treasury yields surged all week but Friday saw the push slow a little... (everything but 2Y is now higher than pre-payrolls)...


The USDollar Index slipped notably after the FOMC Minutes but had been weaker all week... (AUD rose 3.8% on the week)


Commodities all rose on the week


Crude had its 2nd biggest week since Feb 2011...


Gold broke notably above its 100-day moving-average and Silver had its best week since May (breaking but not holding its 200DMA)...


But The Ags were the biggest movers today after USDA forecasts sent everything crazy... (and Orange Juice had its best day since March)


Finally, it appears stocks have decided to re-de-couple from any fundamentals as Macro and Micro data has tumbled in recent weeks...


Charts: Bloomberg