“Greatest Short Squeeze Ever” Sends Stocks To Record Highs

Seemed appropriate…

The Dow Industrials joined The S&P 500 at all-time intrday highs today..along with S&P SmallCap 600.

Note The Dow lost the Intraday high in the close BUT ended at a closing high…

 

Everything is now green year-to-date…

As JPMorgan noted ironically, on Fri stocks rallied because of low bond yields and this week they are extending those gains because yields are higher.

Post-Brexit, Gold and Bonds still lead…

 

Post-Brexit, Trannies, Small Caps, and Nasdaq are all tightly grouped outperforming S&P and Dow (who are glued togather)…

 

As the Short-Squeeze continues… 9 days of the last 10!!

 

This is the biggest short-squeeze in history… Up over 15% in 10 days is a bigger squeeze thanb QE1 and QE2 announcements

(Most Shorted stocks are at their highest since Nov 2015)

Additionally note that today saw Negative Momentum stocks soar back into the green post-Brexit…

 

Financials gapped higher once again at the open and have scrambled back to pre-Brexit close levels…

 

But remain decoupled from the curve once again…

 

Trannies and Small Caps outperformed again today (squeeze)

 

But VIX was higher for the 2nd day as it seems not everyone is buying the breakout exuberance…

 

Rate-Hike odds have risen for September and Decmber but remain neglibile for this month…

 

10Y Yields are up 21bps from last week's lows (and up 16bps from yesterday's lows), as the entire curve surges back towards pre-Brexit levels

 

This has been the biggest 2-day surge in yields since 2011…

 

Here's some context for the move in bonds…

 

The massive weakness in JPY and strngth in GBP is clear in today's FX moves…

 

making this the biggest single-day move in GBPJPY since Lehman…

 

Commodity land was absolute chaos today with copper and crude soaring and PMs dumping…

 

Gold and Silver were sold this afternoon…

 

Oil started to catch up to stocks (after OPEC chatter of tighter H2) ahead of tonght's API data…

 

Finally, we note for those who appreciate irony that a CNBC anchor asked a guest today, given 2 days of bond weakness and equity strength "is this the start of the great rotation?" You're welcome.

 

Charts: Bloomberg

Bonus Chart: March-June correlation breaks down… then accelerates lower…

via http://ift.tt/29NaDVy Tyler Durden

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