This old clip seems very appropriate... Full Throttle until around 2:00... everyone smiling as the 'boat' surges ever faster... then hubris gets its revenge...
Just as we said this morning...
We expect the traditional no volume, USDJPY-levitation driven buying of ES will surely resume once US algos wake up and launch the self-trading spoof programs.
And Volume just got worse and worse all week...
Some context that Greece doesn't matter... On the week...
- Nasdaq +4.1% to record highs - best week since Bullard bounce in October
- S&P +2.3% - best week since March
Trannies and Small Caps disappointed on the week...
On the day - Nasdaq started off crazy right after the close as GOOG hit then just squeezed higher to fresh record highs... S&P unch, Dow down...
But Small Caps were ugly today...
But all the exuberance in Nasdaq is focused in an ever-shrinking number of names...
Note that once the short squeeze had ended there was no follow through at all in the major indices... and in fact shorts started gathering pace again...
Google had a day...
And Netflix had a week...
ETSY Soared because Goldman mentioned it in a Google call... and shorts got "Volkwagen'd"
- VIX -28% - biggest drop since Jan 2013
- Energy Stocks XLE -1.3% - down a record 11 straight weeks to Jan 2013 lows
- Financial Stocks XLF +2.75% - best week since Feb
- Greek Stocks (GREK) -8.2% - worst week since January
It is pretty clear who won and who lost from the Greek bailout...
- China ASHR +0.37% - not exactly the 'recovery' that all that intervention hoped for
- China FXI +0.17% - first gain in 4 weeks
- 30Y TSY -11bps - best week since May
And where do rates go next? if the lagged correlation with crude holds up, considerably lower...
- USD Index +1.9% - best week since May
- EURUSD -2.5% - worst week since May
JPY flatlined today... and thus so did stocks. But it has been a one way street for USD strength, everything else weakness this week...
And digging into the details a little more, your daily FX roundup (courtesy of ForexLive):
- Silver -4.1% - down 8 of last 9 weeks
- Gold -2.2% - down 7 of lats 9 weeks, worst week since March
Ugly for precious metals leaves them still massively outperforming Nasdaq since the dotcom bubble...
- WTI Crude -4.3% - 5th losing week in a row... worst 3-week loss in 2015)
Charts: Bloomberg