Short-Squeeze Sparks Small-Cap Buying-Panic, Bitcoin Nears Record High
Tyler Durden
Tue, 11/17/2020 – 16:01
Overnight gains evaporated across the US cash open this morning – erasing all of the Moderna vaccine gains – but around 10amET, the boot of the short-squeeze army stomped on the throat of small-cap-sellers and sent the index soaring dramatically higher on the day (while the rest of the majors lifted only modestly to end unchanged from MRNA’s headlines)…
The melt-up in Small-Caps was driven in large part by yet another massive short-squeeze…
Source: Bloomberg
Most-Shorted Stocks are up 10 of the last 12 days…
Source: Bloomberg
The jump in Small Caps hit as the ratio to Nasdaq found support…
TSLA soared over 13% at one point today on news that it will be added to the S&P 500, but after tagging the highs from mid-Oct, Musk’s piggybank started to fade…
Major decoupling occurring between momo/value stocks and TSY yields…
Source: Bloomberg
Despite stock gains, and a heavy calendar, bonds were bid, with yields now lower on the week (seemingly unimpressed by MRNA’s vaccine)…
Source: Bloomberg
It seems the message from Bonds to vaccine-hypers is simple…
10Y was back below 90bps and 30Y erased all of the losses from yesterday’s vaccine news (NOTE, 30Y yield found notable resistance at 1.75%)…
Source: Bloomberg
The Dollar drifted back to pre-Pfizer-vaccine spike levels, still well down from the election…
Source: Bloomberg
But it was Bitcoin that made the big headlines – soaring near $18,000…
Source: Bloomberg
Bitcoin has only closed higher than this on one day in history (12/17/17)…
Source: Bloomberg
The surge in Bitcoin has run ahead of the global volume of negative yielding debt that it has traded with for the last two years…
Source: Bloomberg
WTI managed a small gain on the day, scrambling back above $41 ahead of tonight’s inventory data…
Gold trod water around $1885 until The Senate voted to block Judy Shelton’s nomination to The Fed…
Finally, the S&P has overtaken the rest of the world’s majors YTD…
Source: Bloomberg
And as global stocks reach record highs, bonds ain’t buying it at all…
Source: Bloomberg
Greed is back…
via ZeroHedge News https://ift.tt/3lGlNLS Tyler Durden