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Trade War Sparks Stock Surge Amid Biggest Short Squeeze Since Trump's Election

This...

 

Stocks continue to soar...but once again it was the overnight gap open -  Trannies were red on the day but Nasdaq record highs above 6,000; Dow over 21,000, Small Caps record high

 

Nasdaq broke above 6,000 to new record highs.. because fundamentals...

 

Despite further collapse (to 10-week lows) in 'soft' survey data...

 

Amid the biggest short-squeeze since the election...

 

With USDJPY taking over today from VIX (crushed yesterday) as the momentum igniter...

 

And meanwhile 3m implied vol for the S&P 500 (not VIX) dropped to a 9 handle - lowest we could find...

 

The Dow was supercharged by CAT and MCD earnings (over 100 Dow points)... which makes u wonder...

 

Financials have notably surged in the last few days (bouncing off unchanged for the year) but Tech is the biggest winner...

 

Bonds and stocks remain decoupled but bonds sold off hard today relative to yesterday...

 

Despite a strong 2Y auction, bonds were offered all day (with notable steepening)... yields rose quite aggressively into the close

 

The dollar index was relatively flat today (with some modest vol intraday)...

 

But EURJPY surged after fading from post-Macron spike yesterday...biggest 2 day jump since July 2016

 

WTI tagged a $48 handle briefly before bouncing higher...ahead of tonight's API data...

 

As the decoupling between stocks and oil continues to grow...

 

Gold and Silver slipped lower...

 

Following the Lumber tariff headlines, The loonie tumbled... and so did Lumber prices (limit down)

 

And about the tariff driving home prices higher... well, no!

 

And finally, Bitcoin rallied back above gold (on SEC ETF review headlines)