Small Caps Break-Out To Best Week In 8 Months; Bonds & Bullion Big Week On Bad Data
A bad data week...
Source: Bloomberg
...was good news for doves as rate-cut expectations soared...
Source: Bloomberg
...and despite yesterday's bloodbathery, all the US majors managed to rally into the green for the week early on today, with Small Caps literally exploding higher (up around 7% on the week!). A late-day selloff dragged Nasdaq red on the week though...
That was the Russell 2000's best week since November and broke it out to its highest since Jan 2022...
Source: Bloomberg
...and the biggest RTY/NDX outperformance week since Nov 2020...
Source: Bloomberg
Small Caps were aided by a massive short-squeeze this week which saw "most shorted" stocks soaring 10% - the biggest squeeze since Dec...
Source: Bloomberg
And while MAG7 stocks ended the week lower, it was only marginally, as today's bounce back erased some of yesterday's losses...but the late-day selling was predominantly among the mega-cap tech names...
Source: Bloomberg
And of course, after yesterday saw all 7 names ending red (for the first time since April), the rebound today was 'inevitable'...
Source: Bloomberg
0-DTE tracked stocks up and down today but the late-day selling pressure in stocks was NOT related to 0-DTE flow, in fact they bought the dip...
Stocks vs bonds this week... no idea!!!
Source: Bloomberg
Treasury yields tumbled on the week, led by the short-end...
Source: Bloomberg
...which prompted a dramatic bull steepening and almost un-inversion of the curve (2s30s)...
Source: Bloomberg
The dollar tumbled for the second straight week (the biggest two-week drop since December), erasing all of the gains seen since June payrolls...
Source: Bloomberg
Thanks in large part to USDJPY and BoJ 'help'...
Source: Bloomberg
Bitcoin managed gains on the week as ETF inflows dominated the German govt's dumpfest (as they emptied their coffers of every coin)...
Source: Bloomberg
BTC ETFs saw inflows for 5 straight days...
Source: Bloomberg
Gold surged back up near record highs this week, closing the week back above $2400...
Source: Bloomberg
Thanks to weakness today, crude prices ended the week lower as WTI rejected $83.50...
Source: Bloomberg
Finally, it was a big week for market moves but in the big picture equities remain in a universe of their own relative to global liquidity...
Source: Bloomberg
Are stocks expecting a massive liquidity fest?