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…
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)