Small Caps Panic-Bid On Massive Short-Squeeze As Crude Crashes… Again


Global stocks – according to the narrative du jour – got a bid from The BoJ’s promise of yet more asset-buying…

But all that money printing did nothing for any real economy as crude prices collapsed with June WTI plunging to an $11 handle (this market is so fnorked – look at the manic ramp to $14.00 then dump)…

And so as stocks test 2-month highs, the real economy as evidenced by crude is collapsing…

Source: Bloomberg

And Earnings expectations are screaming lower…

Source: Bloomberg

Explained…

Oh that explains it… US Stocks surged on the back of another short-squeeze…

Source: Bloomberg

And a rotation into small cap as people appear to have listened to Goldman’s mega-tech warnings…YES – that is the Russell 2000 up 4.5% TODAY before the late-day tumble…

This is The Dow’s first 4-day win streak since early February.

FANG Stocks were sold as small caps soared

Source: Bloomberg

But Banks were panic-bid (GS now erased most of post-earnings losses)…

Source: Bloomberg

VIX and Vol of VIX tumbled further…

Source: Bloomberg

The VIX term structure is no longer inverted…

Source: Bloomberg

Despite all the excitement, the Virus-Fear trade refuses to ebb back to normal levels…

Source: Bloomberg

Investment Grade bonds were sold today, HY flatish…

Source: Bloomberg

Yields remain notably decoupled from stocks still…

Source: Bloomberg

Treasuries were mixed with the short-end very modestly bid as the long-end was dumped…

Source: Bloomberg

The dollar dropped back today, erasing most of last week’s gains…

Source: Bloomberg

But despite dollar weakness, the Brazilian Real collapsed…

Source: Bloomberg

Cryptos were mixed with Ethereum and Bitcoin higher and Litecoin and Bictoin Cash lower…

Source: Bloomberg

In commodity-land, gold and silver were slightly lower, copper higher and as we noted above, crude was clubbed like a baby seal…

Copper bounced off 2.32…

 

And finally, as @Not_Jim_Cramer illustrates, today’s final regional Fed survey suggests PMI is about to be a bloodbath… nope no v-shaped comeback imminent here in any hope-driven soft survey…

Source: Bloomberg

 



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