Stocks Surge On Biggest Short-Squeeze Since Lehman As Bond Bloodbath Begins Again

Before we start - this!!!

 

Trumponomics, a Hawkish Yellen, plunging jobless claims, and soaring housing starts sparked USD panic-bid, dumping US Treasuries, buying stocks and EM bonds, and dumping Yen and Yuan...

 

Some context:

  • USD Index Most Overbought since March 2015
  • USDJPY Most Overbought since June 2015
  • Dow Most Overbought since Nov 2014
  • Russell 2000 Most Overbought since Jan 2013
  • Financials SPDR (XLF) Most Overbought since April 2010
  • US Treasury Bonds (TLT) Most Oversold since June 2007

Russell 2000 (Small Caps) are up 10 straight days (since Comey 'saved' Clinton). The last time they saw a streak longer than this was June 2003 (after which it fell 6%) - Aug 2003 and Mar 2013 stalled at 10 days straight...

 

There's no volume now...

 

This is the best gain for Small Caps since the rip off the March 2009 lows...

 

Which is very odd given Small Caps' major sensitivity to credit markets...

 

This is the biggest short-squeeze since March 2009

 

Breadth remains dismal...

 

Stocks remain the only thing glowing post-Trump...

 

 

The USD Index pushed on higher after Yellen to new 13.5 year highs...

 

Offshore Yuan tumbled once again (9th day of last 11), falling just shy of 6.90/$... (biggest plunge in Yuan since Jan 2016)...

 

Yen dumped again to within a tick of 110.00...

 

Despite Banxico hiking rates, the Mexican peso plunged again...

 

It appears after a two-day respite, that the China-based selling of Treasuries is back as 30Y backs up over 3.00% once again...

 

Silver and gold are down post-Trump, oil is unch and copper holding gains...

 

As Futures roll to the Jan 17 expiry, Dec WTI tumbled back to a $44 handle into the close...

Comments

No comments yet! Be the first to add yours.