The longest short-squeeze streak in history continues...
John McCain's "Yes" at 1051ET seems to have been the catalyst that extended overnight gains into melt-up mania... (Small Cap smanaged to scramble back green on the day as Trannies rose 2%)
But the Nasdaq remains red on the week...
Futures show the crazy moves best...
The market is convincing itself that tax reform is going to happen as high-tax stocks soar relative to low-tax...
And bookies' odds are soaring to 80%...
The short-squeeze continues for a record 10th day in a row (the biggest percentage squeeze since the election)
Financials and Retailers are ripping higher...
But even Bloomberg notes that this looks a lot like a short squeeze...“There’s a short squeeze here,” said Eric Balchunas, ETF analyst at Bloomberg Intelligence. “XRT is being lent by people who borrowed it, so the release valve when that happens is they have to create new shares.”
But while everyone was excited about The Dow, Tech stocks barely managed a blip in context to yesterday's turmoil...
On the month, FANG and SOX were lower...
On the month, Trannies were best - roaring higher in the last week...
The Momo vs Value chaos this week seems to have normalized the month's moves...
Here's the month in bonds/stocks... equities rally, bonds ignore it, then stocks plunge back to reality and they both squeeze higher...
HYG (high yield bonds) fell for the 2nd straight month - the biggest drop since October 2016 and remain below the 200DMA...
While bonds were all sold on the day, the short-end underperformed...
Once again flattening the yield curve in the face of the equity market melt up...5s30s -3bps!
On the month, yields are very mixed with the short-end higher and long-end lower...
In fact the 2s30s yield curve collapse in November is the biggest flattening since Sept 2011
While on the topic of rates, very few mainstream media types have commented on the massive spike in EONIA the last two days!!
European money markets were shaken by an unexpected jump in the Eonia benchmark rate for the second time Thursday, that left the overnight interbank rate 12.1 basis points higher and traders looking for answers. The move spurred heavy selling across front-end euribors. Bund and Treasury futures were also weighed, extending earlier losses. Traders had few explanations for the sudden move, the scale of which would normally be justified by a shift in the European Central Bank’s benchmark rate. One potential reason is month-end related flows, such as an account locking in funding for the turn of the month a day early, a trader in New York said. Thursday’s fix was higher by 6bps at -0.241%, highest since March 9 2016 and comes after Wednesday’s 6.1bp move higher; the European Money Markets Institute (EMMI), which publishes Eonia, said that Wednesday’s fixing data was correct.
The Dollar Index ended November lower - the first drop since July...
On the month, gold managed to cling to green as Crude led the gains with copper and silver lower...
Gold tumbled once again but managed to scramble and close abovee its 200DMA (blue dotted line)...
Finally, we note that Bitcoin was up 49% in November (slightly less than the 52% gain in October)...
Bonus Chart: Your Fun-durr-mental driven equity markets...