Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends ‘Greed’ Near 2020 Highs

Tyler Durden

Mon, 11/23/2020 – 16:01

Another Monday, another positive vaccine headline…

Small Caps soared to a new record high today after better than expected PMIs and positive vaccine headlines trumped increasingly distant stimulus hopes (but it’s clear the rotation continues)… The market extended gains late on after stimulus-hungry-Yellen was reported as Biden’s primary pick for Treasury Secretary (but that spike did not hold)…Nasdaq ended unch…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Since the election, Small Caps are up almost 12%, Nasdaq and S&P up around 5%…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Russell 2000 is at its highest relative to Nasdaq 100 since June…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

Momentum continued its November collapse…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

Crashing to its lowest since June…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

AAPL tumbled around 3% today, breaking below its 50DMA…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

On a side note, after briefly topping 100% of the Russell 2000’s Market Cap, AAPL is now back at ‘just’ 75% of it…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

Cyclicals have recent soared to their strongest vs Defensives since

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

Today was the biggest daily short-squeeze since mid-July (up 13 of the last 16 days)…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

The Russell/Nasdaq ratio has decoupled from real-yields for now…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

Energy stocks surged once again today, back to its highest relative to tech since early August…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

Credit spreads compressed dramatically after blowing out on Friday after TSY pulled some support from The Fed…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

Yields were higher on the day (Japan closed) with 30Y up around 4bps, but notably there was no extension of the yield spike from the AZN news…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

The dollar spiked significantly after PMIs beat and stimulus hopes faded…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

Bitcoin was flat from Friday but the rest of the crypto space soared…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

Ethereum topped $600, dramatically outperforming Bitcoin in the last few days…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

As flows are favoring crypto over gold for now…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

Gold caught down to real-yields today after the PMI/Stimulus headlines…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

WTI continued to rally, back above $43 (but unable to take out the 11/11 highs for now)…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Gold was clubbed like a baby seal as stimulus hopes faded and PMIs soared after the vaccine news…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Finally, we note that hard (real economy) and soft (survey) data has massively decoupled once again on a sea of hope…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Source: Bloomberg

…and ‘everything’ is risk-on…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

And we haven’t seen this level of greed in a while…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

As Deutsche notes, “This asymmetric market response suggests that positioning is now extended”.

And the good news is that the positivity rate is rolling over…

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs

Dollar Jumps, Gold Dumps, As Massive Short-Squeeze Sends 'Greed' Near 2020 Highs


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