Small Caps Surge Amid Massive Short-Squeeze, Dollar Dead-Cat-Bounces

Spot the odd one out!

Small Caps exploded at the cash open (just as they did yesterday) and kept going (unlike yesterday) as Dow, S&P, and Nasdaq trod water. Did Small Caps run the stops and lose momentum?

All thanks to a huge short-squeeze – the second biggest daily jump in “most shorted” stocks this year…

Source: Bloomberg

Squeeeeze…

Small Caps huge surge today was very technical as it bounced off its 100DMA and ran stops above its 50DMA…

Will it hold this time?

And the whipsaws in the Russell/Nasdaq pair are ripping people’s faces off left and right…

Bezos bought Bond today and AMZN shares ended lower, MGM higher…

Mixed bag in bonds today with the longer-end underperforming (but only up around 2bps)…

Source: Bloomberg

10Y yields chopper around in a very narrow range, still well off the FOMC Minutes spike high…

Source: Bloomberg

The dollar bounced back to unchanged on the week…

Source: Bloomberg

Cryptos were higher on the day but gave back early gains during the US session with Bitcoin unable to hold $40k…

Source: Bloomberg

Ether followed a similar path but outperformed bitcoin, testing above $2800…

Source: Bloomberg

ETH trading volumes are overtaking those of BTC…

ETH volumes have been exploding recently and have surpassed BTC volumes for the past month.

ATHs $20+ billion in daily spot volume. pic.twitter.com/Rv9rLlC9tl

— Ryan Watkins (@RyanWatkins_) May 26, 2021

Gold ended unchanged after a clubbing at around 1345ET took futs down below $1900…

Oil prices chopped around weighing demand pickups with Iran supply concerns (and helped by some notable inventory draws today)…

Commodities were broadly higher today but had a big dip intraday, but is well off the highs…

Source: Bloomberg

And finally, don’t forget the banks keep puking excess over to The Fed (even before month-end window-dressing)…

Source: Bloomberg