– Historic Short Squeeze, Biggest In 3 Years, Sends Small-Caps Soaring; Dow Tops 17,000 (ZeroHedge, Oct 28, 2014):
n a strangely familiar case of deja vu all over again, stocks surged (alone in the cross-asset class world of economic reality) on the day before an FOMC statement. The Russell 2000 has had its best 10-day run in 3 years, best day of the year, and managed to scramble back to its 100- & 200-day moving-average. Dow 17,000 was another key technical level that was achieved. S&P 500 was levitated on volume around 40% below average into the green for October. VIX was banged under 15 and tracked stocks. Away from the equity-vol complex, asset-classes were unimpressed – HY credit, bonds, JPY, and the USD all diverged from stocks. USD weakened slightly, and commodities all gained on the day. TSY yields were up 2-3bps and HY closed practically unchanged. “Most shorted” stocks rose almost 3% – the biggest squeeze since Dec 2011 – smashing the Russell 2000 higher.
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It means nothing. When 85-90% of all transactions are high frequency skim and sell, it means nothing. More money is taken out of the market each day, none of it stays. The few remaining real investors are sitting on the sidelines, all are too afraid to put up a cent……there is no way this market can hold, there is nothing left to support it.
Everything in the world publicly trades from cheese cake to guns and vehicles.
Every industry is seeking more money from the markets instead of their products. It is insane, nothing makes sense………nothing. The world has gone mad from greed. Selling cheese cake at top dollar no longer is enough, selling stock in the company feeds the greedy guts on top……..it is insane.
Being of an advanced age, the generation moving out, it is shocking how rapidly everything is changing. Nothing makes sense any longer.