Doha Deal "Hope" Sparks Biggest Stock Short-Squeeze In 2 Months
By Tyler Durden
So a done deal became “hope for a deal” for a freeze at record production levels amid The IMF slashing global growth (and thus demand) expectations… and this happened…NOTE – all momentum faded when NYMEX closed
Kinda makes you wonder…
The 2nd biggest short-squeeze in 4 months smashed “Most Shorted” stocks to their 2016 highs…
As the early “deal” and late “hope” for a deal double-fisted shorts…
The initial equity ramp took us to the edge of yesterday afternoon's decline. Then the late day “hope” headline sent us above yesterday's highs… only to run stops and fade in the last hour… 2nd day in a row 1500ET saw notable selling hit
Nasdaq modestly underperformed on the day but everyting held green (S&P green YTD)…
Despite the late-day weakness, Energy massively outperformed its peers today…
Treasury yields surged today in lockstep across the curve…
The USD Index trod water today as strong commodity currencies offset JPY weakness…
Commodities all gained (even gold inched higher) as Silver soared again. Cruide and Copper loved hope of a deal…
Finally, WTI Crude did NOT break above its 200DMA as some suggested (who need better sources for their continuous futures data). This close above $42 was the highest since Dec 2015…
But while all eyes were on Crude, Silver surged to its highest in 6 months…
Charts: Bloomberg
Source: Doha Deal "Hope" Sparks Biggest Stock Short-Squeeze In 2 Months
