Stocks Extend Fastest Bounce In 8 Years As Dollar Crash Continues

Seriously...

 

Stocks are up five days in a row... Nasdaq up 5.6% this week alone...

 

For context, this is the Nasdaq's best 5-day rally since 2011!!!!

Small Caps got back to even for 2018 (trannies still red)...Nasdaq is up 5% YTD

 

Nasdaq Futures are up 10% off the lows...

 

As "Most Shorted" Stocks soared off the lows... This is the biggest short-squeeze since the election

 

The Dow tested back below its 50% retracement level but rebounded quickly to a new bounce high...(oh, and Gartman nailed it again)

 

The S&P closed above its 50DMA...

 

The Inverse VIX ETF fell today as stocks gained - the first time that has happened since the collapse...

 

VIX was chaotic around the open today...

 

Despite stock strength, VIX ended the day modestly higher and we do note a significant divergence

 

While prices for HY and IG debt have 'stabilized' they are not rallying as exuberantly as stocks... perhaps because they just got hit with the biggest ETF fund outflows ever...

And just in case you needed any more confirmation of how nuts the world has become, Emerging Market High-Yield Debt is now trading at a lower yield than US High-Yield Debt...

 

Treasuries were notably mixed today with the long-end rallying and short-end higher in yield... On the week 30Y yields remain lower...

 

Which pushed the yield curve even flatter...

 

The Dollar Index bounced very briefly on BoJ headlines then tumbled back to its lowest close since Dec 2014 - down 5 days in a row...

 

Once Europe closed today, the dollar (lower) and gold and stocks (higher) were locked at the hip...

 

Once the dollar started sliding again this afternoon, commodities were all off to the races...

 

Cryptocurrencies continued their strong run this week...Bitcoin is up 20% on the week...

 

With Bitcoin seemingly tied at the hip to Nasdaq and VIX...

 

As a final reminder, markets are about to somewhat quieter (or at least less liquid) as most of Asia heads into the year of the dog and their celebrations.

 

Comments

onthedeschutes Thu, 02/15/2018 - 16:04 Permalink

Day two of the "correction" it was made public that the ECB had "been in contact with market participants".  What more do you need to know?  The "markets" are a complete joke...pure and simple.

Kaiser Sousa Thu, 02/15/2018 - 16:05 Permalink

from a week ago…

"for 9 years straight i been pointing out how much of a fucking Farce the US so called “markets” are as day after day the Fed & ESF commandeer them in order to prop up an insolvent nation and manage the perceptions of a dumb downed, broke ass, brainwashed people…”

thats right Ameridumb’s…today represents the 6th day in a row where the Dow Jones Propaganda Index has put in from open to close a 300-500 point reversal to the upside right around 10-11:30 est. erasing all losses IN SPITE OF ONLY NEGATIVE
MACRO-ECONOMIC NEWS & DATA
…truly the hallmarks of an “exceptional” Banana Republic.

ya’ll come back now..ya’ hear!

DEATH TO THE MONEYCHANGERS.

nuerocaster Kaiser Sousa Thu, 02/15/2018 - 17:32 Permalink

Let's imagine you're a Saudi "royal" kidnapped and held for ransom by your "government". Or perhaps a Mexican businessman kidnapped and held for ransom by freelance gangsters.

What would you be thinking?

"That damn Fed is manipulating markets, if I ever get out of this I'm shifting everything to ah um, let's see, uh prices are really cheap in Venezuela."

In reply to by Kaiser Sousa

slaughterer Thu, 02/15/2018 - 16:07 Permalink

By next week every index will be at new ATH and all the doom-predictors (GS, Gartman, Colas, Bridgewater, et.al.) will still continue to propagate their disaster warnings.  

Keltner Channel Surf Thu, 02/15/2018 - 16:10 Permalink

“FreeStockCharts”      from   “Kodachrome”      by  Paul Siimon

When I think back on all the crap I learned from chartists
It's a wonder I can trade at all
And though my lack of TradeStation hasn't hurt me none
I still read the patterns on the wall

FreeStockCharts!
They give us those nice bright colors
They give us the custom plot guides
Makes you think all the world’s a penny arcade, oh yeah
Got me some Ichimoku, I love to tweak my custom graphs
So, Worden, don't take my FreeStockCharts away

If you took all the stocks I used since I first started
And brought them all together on one chart
Be like an EKG of the entire city of Boston
All dyin’ at VWAP by one thrown dart  

FreeStockCharts !   etc.

Worden, don’t take my FreeStockCharts; Worden, don’t take my FreeStockCharts away

(repeat several times, with increasing speed and urgency)

HushHushSweet Full Court Lug… Thu, 02/15/2018 - 18:24 Permalink

No, the banksters didn't lose that fight. The tanking was done to scare people from doing something (perhaps release more info on the alphabets and their handlers); the art of the deal was made to sweep everything under the rug in exchange for moar maga; and now everything is hunky-dunky again. The banksters win even when they seem to lose because they're not in the game. They are the game.

In reply to by Full Court Lug…

Squid Viscous BlueHorseShoeLovesDT Thu, 02/15/2018 - 16:49 Permalink

hold your horses, fuckface,

i was just making an observation about how you come out of the closet on days like this.

but, let's get it on, where do you live, i will fucking ruin you.

address, please...just sent you a friendly PM.

if you live within 1500 miles of the mississippi, i will drive there and beat you down fists first,

pussy

(and i wasn't "asking for advice" from Tarder, you arrogant cunt)

or ... don't ever post here again. you've been called out as a ...pussy

In reply to by BlueHorseShoeLovesDT

Peak Finance Thu, 02/15/2018 - 16:16 Permalink

Soooo,

The market is fixed! 

Dollar doing good! (Yes, they want a weak dollar, regardless of the jawboning)

Gold has some life again!

 

PERSONALLY

Margin is now -> Zero <- Honestly I am one of those nutty people that hates debt and should never have let me margins get so big in the first place.

Got a great new trading plan

So, Monday its back to BTFD!

 

Gratz everyone with faith in Brocolli man and 330 ramp capital! 

 

 

 

 

Peak Finance TradingTroll Thu, 02/15/2018 - 16:44 Permalink

Short, What exactly? 

I hate consumer credit, gave up shorting that. 

I HATE auto credit, I mean guys are making fun of Santander in the boardrooms now, which in the past was a NO-BRAINER SHORT, now we live in Bizzaro-world not so much. Been shorting them for a long time never got a payoff.

 

My only short thoughts:

I HATE dollar stores

I HATE bullshit little convenience stores, and stores like CVS, Walgreens

I HATE low-end food establishments (McDonalds for example) 

Welfare reform would hurt these places and be kinda a black swan to their books

Short any place that has "We Accept EBT Sign" 

Rec looks like it's starting to hurt, anyplace that sells motorcycles, RV's, large consumer toys might hurt for a while. Go to camping world find out who finances their shit then short those guys. 

In reply to by TradingTroll

Peak Finance coast1 Thu, 02/15/2018 - 17:10 Permalink

Too much ZIRP

They took full advantage

and VASTLY overbuilt their stores

All of the dollar stores are guilty of this. 

 

Then Dollar General at the height of it's stupidy

Started to build LARGE stores to compete with Walmart

retarded, who would want to compete with Walmart and why? 

How did that boardroom conversation go at Dollar General

"Hey, lets compete with Walmart, we can do it even shittier and cheaper! Love their customer base lOLZ!" 

 

In reply to by coast1