Musk Sparks Major Crypto Spike, Stock Short-Squeeze Continues

The Dow and S&P joined Nasdaq and Small Caps in the green for the week after today’s escalation of the rip off the Monday’s lows…

Sparked by another major short squeeze (bigger than the PPT inspired bounce in mid-June)…

Source: Bloomberg

But we do note that after the initial surge, the squeeze stalled…

Source: Bloomberg

Even more evidenced by the massive divergence between money flow and the market from the cash open…

Source: Bloomberg

Monday’s big losers (banks and energy) are now the week’s biggest winners (Utes are the week’s laggards… for now…)

Source: Bloomberg

Get Out & Party stocks continued to massively rebound against Stay At Home stocks (but we note after the initial opening rip, things stopped)…

Source: Bloomberg

Does anybody else feel like this week’s stick-save made them think of this ‘miracle’ (I definitely hear the music in the back of my head)…

VIX was monkeyhammered back to a 17 handle (still modestly elevated)

And as we noted earlier, there is a kink around J-Hole in the vol term structure…

Bonds were sold again today, just enough to 10Y unch for the week and 30Y marginally higher in yields…

Source: Bloomberg

As we detailed earlier, the relationship between bonds and stocks has changed once again…

Source: Bloomberg

10Y Yield tested back above its 200DMA…

Source: Bloomberg

But 10Y tagged 1.30% and buyers returned…

Source: Bloomberg

Big bounce in bitcoin today after The B-Word Conference…

Source: Bloomberg

Ether also jumped significantly, back above $2000…

Source: Bloomberg

Musk “We need to watch out for bitcoin and proof of work for using energy that’s maybe a bit too much and not necessarily good for the environment… but on balance I support bitcoin.“

Musk says he hasn’t sold any personal stake in crypto (owns BTC, ETH, and DOGE): “I might pump, but I don’t dump”

Musk reflected on the improvements occurring on the energy use side of bitcoin – from an ESG perspective – adding that “Tesla accepting bitcoin again is most likely.”

Dorsey thinks bitcoin is the best candidate for a native internet currency for many reasons. Cites its resilience and creation story.

The dollar took a dive today…

Source: Bloomberg

The bounce back in black gold continues with WTI topping $70 again (despite a surprise crude inventory build)…

Dr.Copper just ain’t buying that the reflation trade is back…

Source: Bloomberg

Lumber futures surged higher today (after weeks of tumbling) on concern that wildfires in western Canada will reduce supply and spur more curtailments at sawmills…

Source: Bloomberg

Gold once again bounced off $1800…

And finally, don’t expect bond vol to ease anytime soon…

Source: Bloomberg

Spurious or not?