Gold Drops, Oil Pops As Another Volumeless Buying-Frenzy Strikes Stocks
By Tyler Durden
We begin today's end of day catch up with a report from The Onion that seemed highly appropriate:
NEW YORK – According to a brief but conclusive report released Monday, nobody fucking cares.
“Doesn’t fucking matter,” read the report in part, which went on to inform readers that no one gives two shits, so fuck it. “Seriously. Stop wasting everyone’s goddamn time.”
The report further urged those who still hadn’t shut up about it to quit acting like fucking idiots and just give it a rest, for Christ’s sake.
As following the overnight strength – on a Brexit poll of 1000 people that suggested Brexit fears overblown – the ridiculous beat in new home sales (at a record high price)…
…sparked sheer panic bids in homebuilder stocks.. and pretty much everything else. Dow Futures soared 300 points off the overnight lows… (we saw this manic pattern last week)
Trannies were the laggard on the day but bounced off unch for the week, Small Caps are leading…
Futures show the overnight exuberance…
For context today's spikes in stocks – the biggest since March – were very technical – all breaking their 50-day moving-averages…
As the short squeeze comes on again…US Open and EU Close sparked big squeezes in “most shorted” stocks – doubling the performance of the market…biggest 3-day short-squeeze in 6 weeks.
Homebuilders were best (with Utes lagging)…
Today's exuberance lifted The S&P and Small Caps into the green for May…
VIX was jammed down to a 14 handle again…
Treasury yields were far less exuberant than stocks…
But USDJPY 110 was in charge of the day…
Treasury yields all rose on the day but the long-end underperformed (10Y +3bps, 2Y unch) – once again the EU close pivoted the trend from selling bonds to buying them…
The USD Index rose once again (9th day in a row) today (as JPY weakness offset GBP strength – more positive polls) and EUR sunk…
Commodities were very mixed today with copper and crude soaring and PMs dumping… Crude's 2016 highs…
Charts: Bloomberg
Source: Gold Drops, Oil Pops As Another Volumeless Buying-Frenzy Strikes Stocks
