Dow Transports were the best performing US equity index in May, rising 5.5% – the best May in 23 years (and best month since Oct 2013). The Dow and Russell 2000 also managed to scrape out gains for May. May also saw bond-buying (the best month since Jan) and gold-selling (worst month since Dec). Treasuries flattened for the 3rd month in a row as 2s30s dropped to 1 year lows. On the week, stocks soared (as “most shorted” were squeezed to death – best 2-weeks in 2014) but VIX has its best week in the last 5, bond yields tumbled and the curve flattened (10Y -8bps, 2Y +2.5bps), gold and silver were clubbed (down 3-4%) for the worst week in 8 months. Amid all this angst the USD ended unch. The S&P overtook gold YTD today but bonds remain 2014’s best performer.
For all those still paying attention – following the worst GDP print since 2011, we have the biggest drop in consumer spending since 2009… and two consecutive all-time record highs in the S&P 500 and just shy of record highs for the Dow!!!! (thanks to a buying frenzy that started at 330ET… as always)
Buy in May… Buy Every Day…Stocks.. S&P 5th all-time high of last 6 days…yay! Trannies best May in 23 years
And Bonds…best month since January
And quite a week for stocks…
Volume was weak and getting weaker…
As “most shorted” stocks were squeezed to their best 2-weeks in 2014…
But today saw the squeezing pressure abate…
Which has moved the S&P 500 above Gold in 2014 (but bonds still the best performers overall)…
Something’s odd though…
And VIX was totally range-bound (ending the week higher) as stocks soared…
Bonds saw major flattening on the week as the short-end saw yields rise 2-3bps and the long-end drop 7-8bps…
Ugly week for gold (worst in 8 months)…breaking most critical technical levels…
Amid all this angst… the USD index closed the week unchanged…
Charts: Bloomberg
Bonus Chart: And the best stock market in May was… Russia… its best month in 5 years
via Zero Hedge http://ift.tt/1lYCvPG Tyler Durden