Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

Today's miss for payrolls, drop in unemployment, weaker wage growth, and drop in participation rate was proclaimed by Bob Pisani and his like as "goldilocks"... David Rosenberg disagreed:

But for now, stocks ended the week unchanged thanks to the biggest short squeeze since Brexit to reassure everyone that...

On the week, stocks mixed (Nasdaq up, Dow down); Dollar, Oil, and Bitcoin up; Gold down, bonds unch...

Friday saw Thursday's momo reversal extend with Nasdaq and Small Caps squeezed into the green for the week and then S&P and The Dow pumped to green for the week after Fed's Williams comments that he's ok overshooting 2% inflation for a while... but by the close only Nasdaq and Small Caps held gains on the week...

Futures show this was not related to payrolls - this was pure cash market short squeeze that began as Europe closed yesterday...

Of course the yuuge bounce is all technical - Dow and S&P bouncing off their 200DMA

 

Today was a huge 3.3% "Most Shorted Stock" short-squeeze day...

The biggest single short-squeeze day sine 6/29/16 (the post-Brexit buying panic bounce)

 

VIX flash-crashed to a 10-handle as payrolls printed...

and closed with a 14-handle for the first time since March 9th (payrolls day!)... and look what happened right before that low?!

 

Big Bank stocks ended the week red despite today's effort to ramp... (SocGen, BNP, and HSBC all missed this week)

 

AAPL shares ripped to a new record high (after Buffett was buying in Q1)...

 

And FANG Stocks surged...

 

Elon had a tough week but through the magic of machines, his stocks managed to get back to even (after his short-squeeze threat)... despite TSLA bond's collapse...

 

Tech strength and financial weakness sent the S&P Tech/Banks ratio to its highest since the peak of the dotcom debacle...

 

Stocks and Bonds decoupled this afternoon as the machines pushed the former up to unch on the week...

 

Mixed picture in Treasuries this week with the belly outperforming (7Y -2bps) while the tails lagged (2Y +1bp or so and 30Y lagged until the last hour or so)...

 

It has now been six days since the 10Y Yield traded above 3.00%...

 

The yield curve flattened once again

 

The Dollar Index rallied for the 3rd week in a row - the biggest jump since 11/25/16...

 

Argentine Peso was the week's worst currency - plunging over 6%...despite a 1275bps rate-hike!!

 

Cable broke below its 200DMA

 

Cryptocurrencies surged this week with Bitcoin testing up towards $10,000 and Ethereum over $800...

 

WTI dominated the commodity space this week... with PMs in the red...

 

WTI traded within 3c of $70 today at its highest since Nov 2014...

 

Finally we offer this from Fed's Kaplan: "My guess is we will eventually start to see wage pressures "

But he added "The flatness in the yield curve tells me we're late in the cycle.. the yield curve is telling us that outyear growth looks sluggish."

Are you reassured now?

SMART Money remains a big seller...

Comments

Bitchface-KILLAH DennisR Fri, 05/04/2018 - 16:03 Permalink

What is important now is what happens to Bitcoin (BCH).  Satoshi came to me in a dream 3 months ago and said that Bitcoin needs help.  It was teh most beautiful thing I've ever seen!  There were lights and Japanese Bubble tea thingys floating everywhere and and Tetris pieces falling and ASCII characters blinking!  He said that his perfect creation had been hijacked by Adam Back and the Core Dev team and they were purposely hurting Bitcoin and holding it back.  He said we all need to support The Flippening to BCH and give Bitcoin back to teh people!!

In reply to by DennisR

Kaiser Sousa Fri, 05/04/2018 - 16:02 Permalink

now do u see how in ur face “they” are with these manipulated farcical “markets”?

it wasn’t enough to do what they did yesterday, they just had to follow it up with some more complete bullshit 2day - right???

Happy Ending Friday (noun):  "A market phenomenon that occurs on Friday's whereby losses across most of the U.S. fraud indices, in particular the Dow Jones Propaganda Index, are erased by the Federal Reserve, Exchange Stabilization Fund, scum on Wall St., and the "too big to fail” (TBTF) insolvent commercial banks to ensure a positive close for the Fraud Markets on ABSOLUTELY NO POSITIVE MACRO ECONOMIC NEWS OR DATA WHATSOFUCKINGEVER.”

- Kaiser Sousa -

and thats all u need to know…

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........('(...´...´.... ¯~/'...')

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...........\.............. _.·´

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DEATH TO THE FUCKING MONEYCHANGERS.

Keltner Channel Surf Fri, 05/04/2018 - 16:03 Permalink

Why did markets go up today?  Only one explanation is elegant in its simplicity:   LeBronto

Same thing would’ve happened if algos had been shown an early Bresson film or mid-period Vermeer.

adr Fri, 05/04/2018 - 16:12 Permalink

Remember when $70 oil meant gas under $2 and now it means gas over $3. THANKS ASSHOLES!!!!!

TSLA should have crashed $200 but algos don't care about the character of a man or the true financials of the company, just what the technical analysis of the gyrating line means.

AN algo is programmed with a price target and it will just keep trading until it hits what it was programmed to hit.

Fiat Burner Fri, 05/04/2018 - 16:12 Permalink

Coordinated disobedience backed up with armed resistance is the only way this evil will ever stop.  Time get some balls and do what is right. Don't be a house slave.

“If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that ye were our countrymen.” 
―Samuel Adams

Wild Bill Steamcock Fiat Burner Fri, 05/04/2018 - 16:37 Permalink

You have a valid point of view on how this evil can be stopped. Yet as of late, I've been wondering if it wouldn't be easier, more expedient, and perhaps even a little more realistic, to simply allow the whole system to collapse under its own weight?  The beams propping it up are strained and groaning as it is.  Its rotted to the core and no remnant should remain, lest the infection start over again.  Just scrap it and build something new

In reply to by Fiat Burner

Fiat Burner Wild Bill Steamcock Fri, 05/04/2018 - 16:58 Permalink

The madmen running this show will just use a collapse as a pretense to usurp even more domination and control.  They know their system is failing and that is why they have been ramping up the police state and surveillance state.  It will be unleashed in full force on us during a collapse.

The infection will start over again as long as people believe in the illusion of "authority": the bogus idea that some men have the right to rule over others.  Those of us who understand that this is bogus need to band together to coordinate disobedience and resistance, while also keeping dialogue open with the sheep to try to grow our numbers. 

https://www.youtube.com/watch?v=H6b70TUbdfs

In reply to by Wild Bill Steamcock

IntelligenceActs Fiat Burner Fri, 05/04/2018 - 18:37 Permalink

The collapse will be our ONLY opportunity. Bankers, trader's, the political class, corporate CEO's, investors, and board members will be burned at the stake. It will be ugly and violent but absolutely necessary to ensure it doesn't happen again anytime soon. The 'sheep' will need to follow the above example or be quartered and then burnt. There is no easy way out of this, sadly. The wrath of the ONE will forever chain the evil that has deceived it. Those wishing to man the resistance will need to act quickly and decisively or risk being a target themselves. There is yet some time to prepare. Don't waste time...

In reply to by Fiat Burner

stefan-coast Fri, 05/04/2018 - 16:15 Permalink

help me, help me, help me PLEEEEase, I got a big fat woman, tryin to break me...I just love to live so pleasantly, end this life of misery, lazin on a sunday afternoon :-)