US Stocks Soar... Because Nothing's Fixed In Europe & US Growth Slowed
Equity investors are convinced...
Video length: 00:02:44
Does this look like Italy is 'fixed'?
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US Bank stocks bounced but remain notably red on the week...
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In fact the big US banks are still notably weaker...
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So The ECB bid BTPs at the auction and The Fed PPT bid US stocks at the open... The Dow remain red on the week, S&P and Trannies faded into the close but Small Caps exploded and held gains on the day...
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The Russell 2000 was squeezed to another new record high today as the entire US equity market soared on absolutely nothing. In Europe - no resolutions, no nearer a non-anti-establishment government, and no promise of support from the ECB (in fact the opposite)...
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Oh and for those who suggest that buying Small Caps makes sense here as they are domestically-focused - well fuck that, US economic data has been dismal and got worse today as GDP missed expectations...
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The simple reason why Small Caps exploded higher is - another massive short squeeze...
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The S&P 500 bounced off its 50DMA, pushing back above the 100DMA...
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Bonds and Stocks decoupled as US market opened (stocks spiked, bonds were bid)
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Credit and Stocks decoupled massively...
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As an FYI - European HY credit trades wider than US HY credit for the first time since Nov 2013
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Treasury Yields bounced higher, but remain notably lower from Friday...
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30Y yields rose but bonds rallied back down to around the 3.00% level into the close...
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The yield curve collapsed today, erasing yesterday's brief steepening... This is the 2nd lowest close for the 2s30s curve since Oct 2007...
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Breakevens bounced today but faded into the close - having never recovered yesterday's drop...
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The Dollar Index tumbled back to unchanged on the week...
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Cryptos gave back some of yesterday's gains leaving them all in the red on the week...
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Commodities remained relatively flat on the week but WTI surged ahead of tonight's API data...
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WTI bounced back above $68...
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Finally, while the mainstream media celebrates today's manic melt-up in stocks (blatantly ignoring bonds, credit, economic data, and Italy), the SMART money is paniccing out of the market...
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