Tech Turmoils After ‘Positive’ POTUS, Jobs Jolts, And SoftBank Squeeze

Tech Turmoils After ‘Positive’ POTUS, Jobs Jolts, And SoftBank Squeeze

Tyler Durden

Fri, 10/02/2020 – 16:01

An ugly week for ‘hard’ real data in the US but ‘hope’ hit a two year high as ‘soft’ data outperformed…

Source: Bloomberg

Small Caps exploded higher this week (pumped-up 6 of last 7 days) and best week in 2 months as Nasdaq lagged (but all were higher on the week)…

It’s not the economy or fundamentals, it’s the stimulus handouts, stupid!

Source: @AWMCheung

Because, COVID or not, Jobs or not, Fiscal stimulus or not, Biden or not, you gotta look on the bright side of life, right?

Of course today’s market action was Trump Virus fears dueling with Pelosi’s false hopes for fiscal help…(but look at that divergence between Nasdaq and Small Caps at the open)…ugly close today too

Nasdaq underperformed Russell 2000 by the most since May today as we suspect market-makers stomped on the throat of Softbank’s gamma-squeezers…

Source: Bloomberg

And we note that Nasdaq VIX spiked hardest at the open and was the most aggressively bid today…

Source: Bloomberg

Notably, Nasdaq spec shorts collapsed by 40% but the index only managed marginally positive gains on the week (was Softbank trying to ignite a short-squeeze?)…

Source: Bloomberg

“Most Shorted” Stocks are up 6 days in a row (squeezed)

Source: Bloomberg

Some spurious comments from Pelosi on Airlines bailouts sparked a bid in that sector, but it faded somewhat as details were missing…

Source: Bloomberg

FANG Stocks were lower today but up on the week…

Source: Bloomberg

Treasury yields ended the week higher, driven by two rather notable spikes, seemingly sparked by stimulus optimism (and refused to unwind on reality)…

Source: Bloomberg

10Y Yields spiked up to 70bps and stalled again…

Source: Bloomberg

The Dollar erased about half of last week’s gains this week…

Source: Bloomberg

Cryptos were lower this week…

Source: Bloomberg

Real yields fell this week, helping send gold higher…

Source: Bloomberg

WTI was clubbed like a baby seal this week but Silver surged…

WTI ended with a $36 handle on the week, erasing all of the recent rebound gains…

 

Finally, the 1930s analog remains in place…

Source: Bloomberg

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Author: Tyler Durden

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