Stocks Soar To Best Week In A Year On “Mother Of All Short Squeezes”

The week summarised… as BofA put it –“It’s Not A Risk-On Rally, This Is The Biggest Short Squeeze In Years”

With China shut and The Fed going full dovish panic-mode over growth fears, world markets went crazy…

S&P up 7 of last 8 days +3.2% – best week since Oct 2014

Russell 2000 +4.5% – best week since Oct 2014

Nasdaq up 7 of last 8 (since Death Cross) closed above 50DMA

Trannies up 8 of last 9 closed above 100DMA +4.9% – best week since Oct 2014

Dow up 8 of last 9 +3.5% – best week since Feb 2015

“Most Shorted” +4.7% – biggest squeeze in 8 months

Biotechs -2.3%

Financials +2.2% – best week in 3 months

Asian Dollar Index +1.4% (worst week for USD vs Asian FX since Oct 2011)

Dollar Index -1.2% (worst week for USD vs Majors in 2 months)

AUD +4% – best week sicen Dec 2011

2Y TSY Yields +6.5bps – biggest rise in 7 weeks

5Y TSY Yields +11bps – biggest rise in 4 months

WTI Crude +8.9% – 2nd best week sicne Feb 2011

OJ +4.8% – best day since March

Silver +3.8% – best week since May

LOLume!!

 

The last 8 days have seen a massive short-squeeze… 2nd biggest in history

 

The last 2 times stocks were short-squeezed this much, did not end well…

 

And the following stunning chart shows the percent of S&P 500 names above their 50-day moving-average has soared from 4% to 60% in a few weeks…

 

h/t @ReformedBroker

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Off the Payrolls lows, it’s been non-stop…

 

Credit tracked stocks all week but decoupled this afternoon…

 

VIX has fallen for 9 straight days… the longest streak since Oct 2011..

 

Energy stocks outperformed and Healthcare (Biotechs) were the laggards…

 

Treasury yields surged all week but Friday saw the push slow a little… (everything but 2Y is now higher than pre-payrolls)…

 

The USDollar Index slipped notably after the FOMC Minutes but had been weaker all week… (AUD rose 3.8% on the week)