The S&P 500 has now managed the longest weekly winning streak (7 weeks) since May 2007 (when it managed a 9% gain). Off the recent lows, the current run is an impressive 9.6% (for the S&P) with Trannies up 12.5% in the same period. (we hesitate to mention that May 2007's run-up was halted by the first of the structured credit funds imploding) On the week, Trannies and NASDAQ ended back practically unch, Russell 2000 outperformed but the afternoon melt-up in stocks (on the back of more shorts being squeezed) held the S&P above 1,800 close for the first time ever. Bonds rallied (recovering a lot of their mid-week losses), the USD was offered in general (led by EUR strength) but AUD's 2% loss was notable. VIX was manhandled to 12.25% into the close to maintain the headline-grabbing 1,800 as gold and silver clung to their lows.
The 7-week winning streak of the S&P 500 in 2007 marked the top…
A glance at the lower pane in the following week of data for the S&P 500 says all you need to know… the selling days are heavy volume and the buy days are thin, low volume illiquid meltups…
The NASDAQ crept back to unch on the week, Trannies underperformed but the small cap Russell went on another high beta trip to infinity… Just look at the dip-buying frenzy in small caps (blue) after the FOMC minutes were digested…!!
As "most shorted" names were tossed around like rag dolls… with the afternoon meltup in broad indices driven by yet further squeezes…
Led by the all-important EURJPY carry trade… come the fuck on!!!!
Treasuries were bid back in the last 2 days recovering most ofthe FOMC minutes losses…
The more hedged and saturated credit guys finally threw in the towel and capitulated the last 2 days…
Precious metals had a tough week – as oil and copper rose (Fed off, growth on? – not in the data but whatever)…
Charts: Bloomberg
Bonus Chart: The Only chart that counts…
Bonus Bonus Chart: A glimpse of the future for the US perhaps? Or are we witnessing the birth of the CaracasCoin (Venezuela's stock index surged 56% in 21 days, then collapsed 20.2% in 10 days and has now spiked 9.75% in the last 2 days…)
Is there a CNBC Venezuela?
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/_bAiJxVnsdo/story01.htm Tyler Durden