On the heels of Friday's late melt-up, futures opened quietly on Sunday before ramping dramatically higher as Europe opened (which also saw Gold monkey-hammered lower) and then one again as US opened (along with another gold smackdown). In both cases, USDJPY was the 'igniter' of momentum. After last week's best (worst) week for "most shorted" stocks, the US open saw them instantly ramped higher and then again another squeeze pump into the EU close. Notably, the Russell dropped over 0.5% from its opening print as it appears all the buying power occurred in that early short squeeze pump. Shortly after 3ET, AAPL started to fade and then VIX pushed higher (as "most shorted" stocks started accelerating lower). By the close the Dow had lost its record highs, Russell was down 2.65% for July, Gold (and silver) were whacked 2.4% (worst in 2014), oil closed up modestly, USD unch (JPY -0.25%), and Treasury yields only +2-3bps. S&P futures volume ended 30% below average.
The S&P remains marginally green post-payrolls (and notably the ramps in stocks occurred at the EUR and US opens)…
Notably this was all driven by two Squeeze pumps in "Most Shorted" stocks
Lifting the Dow to Record highs (briefly)… Deja vu all over again…?
Thanks to USDJPY
And VIX initial pump
But once that initial pump had faded, it appears the sellers had the upper hand… (this is performance post 0931ET)
And Utilities, Financials, and Homebuilders were the most sold from the open…
For July, the Russell 2000 remains the big laggard…
Bonds are not so exuberant about the growth hopes…
The USD ended the day unchanged but notably JPY weakness was offset by some modest EUR strength…
Treasuries were hardly ramapaging higher as stocks hit new highs..
But the main story was Gold (and silver) – which were whacked lower…
With major volume dumps at the EU open and US open… but nbotably GHold bounced off its 100DMA
Charts: Bloomberg
via Zero Hedge http://ift.tt/1npc6uD Tyler Durden