Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

Today’s miss for payrolls, drop in unemployment, weaker wage growth, and drop in participation rate was proclaimed by Bob Pisani and his like as “goldilocks”… David Rosenberg disagreed:

https://platform.twitter.com/widgets.jsBut for now, stocks ended the week unchanged thanks to the biggest short squeeze since Brexit to reassure everyone that…

[youtube https://www.youtube.com/watch?v=StTqXEQ2l-Y]

On the week, stocks mixed (Nasdaq up, Dow down); Dollar, Oil, and Bitcoin up; Gold down, bonds unch…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

Friday saw Thursday’s momo reversal extend with Nasdaq and Small Caps squeezed into the green for the week and then S&P and The Dow pumped to green for the week after Fed’s Williams comments that he’s ok overshooting 2% inflation for a while… but by the close only Nasdaq and Small Caps held gains on the week…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

Futures show this was not related to payrolls – this was pure cash market short squeeze that began as Europe closed yesterday…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

Of course the yuuge bounce is all technical – Dow and S&P bouncing off their 200DMA

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

Today was a huge 3.3% “Most Shorted Stock” short-squeeze day…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

The biggest single short-squeeze day sine 6/29/16 (the post-Brexit buying panic bounce)

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

VIX flash-crashed to a 10-handle as payrolls printed…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

and closed with a 14-handle for the first time since March 9th (payrolls day!)… and look what happened right before that low?!

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

Big Bank stocks ended the week red despite today’s effort to ramp… (SocGen, BNP, and HSBC all missed this week)

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

AAPL shares ripped to a new record high (after Buffett was buying in Q1)…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

And FANG Stocks surged…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

Elon had a tough week but through the magic of machines, his stocks managed to get back to even (after his short-squeeze threat)… despite TSLA bond’s collapse…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

Tech strength and financial weakness sent the S&P Tech/Banks ratio to its highest since the peak of the dotcom debacle…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

Stocks and Bonds decoupled this afternoon as the machines pushed the former up to unch on the week…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

Mixed picture in Treasuries this week with the belly outperforming (7Y -2bps) while the tails lagged (2Y +1bp or so and 30Y lagged until the last hour or so)…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

It has now been six days since the 10Y Yield traded above 3.00%…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

The yield curve flattened once again

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

The Dollar Index rallied for the 3rd week in a row – the biggest jump since 11/25/16…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

Argentine Peso was the week’s worst currency – plunging over 6%…despite a 1275bps rate-hike!!

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

Cable broke below its 200DMA

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

Cryptocurrencies surged this week with Bitcoin testing up towards $10,000 and Ethereum over $800…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

WTI dominated the commodity space this week… with PMs in the red…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

WTI traded within 3c of $70 today at its highest since Nov 2014…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

 

Finally we offer this from Fed’s Kaplan: “My guess is we will eventually start to see wage pressures “

But he added “The flatness in the yield curve tells me we’re late in the cycle.. the yield curve is telling us that outyear growth looks sluggish.”

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

Are you reassured now?

SMART Money remains a big seller…

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised

Stocks Bounce On Biggest Short-Squeeze Since Brexit, But Banks & Bullion Bruised
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