The week explained...
http://www.youtube.com/watch?v=FsqJFIJ5lLs
Stocks extend gains this week - now the best 2-weeks since Bullard's Oct 2014 lows... BULLARD 2 - 0 REALITY
But ended on a weak note...
Futures give us a glimpse of the sudden buying panic into Europe's Open/China's close, selling at US Open on the "good" news... Weak close...
Even though Trannies and Small Caps gained on the day (more squeezes)...
In our overnight wrap moments ago, when previewing today's action, we said that "absent some dramatic reversal, such as Gartman covering his shorts and going unexpectedly long, expect the low-volume, upward momentum to continue into the G-20 weekend." Well, as the bible says, ask and ye shall receive.
In Gartman's just released note, we learn that the recurring Fast Money guest has indeed finally thrown in the towel, and after putting on S&P shorts at 1926 some time ago, has finally capitulated with the market once again going sharply against him. To wit:
Whether this week's market surge was catalyzed by two consecutive "technical problems" in the bond market, first the unexpected failure of the Fed's MBS POMO on Wednesday and then the 7 Year Treasury auction's last minute cancellations yesterday, and quite clearly it was...
... is irrelevant as the short squeeze has not only returned with a vengeance...
... but the critical 1,950 resistance and 50 DMA in the S&P500 was taken out...
Submitted by Lance Roberts via RealInvestmentAdvice.com,
Earnings Worse Than You Think
Just like the hit series “House Of Cards,” Wall Street earnings season has become rife with manipulation, deceit and obfuscation that could rival the dark corners of Washington, D.C.
While the prevailing dour (or perhaps sour) overnight mood was a continuation of the weak oil theme which started yesterday after Iran said the production freeze proposed by Saudi and Russia as "ridiculous", and Saudi oil minister Al-Naimi said that Saudi won't cut supply and that high-cost producers need to either "lower costs, borrow cash or liquidate” (ideally the latter), risk sentiment was further dented when BOJ Governor Kuroda says he won’t target FX rates or stocks, which is clearly nonsense, and further spooked Japanese asset prices (Nikkei -0.85), while s