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Comey Saves The World – Stocks Soar Most In 8 Months

Monday, November 7, 2016 16:55
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Thank you Mr.Comey for saving the world…

9 Days Down, 1 day Up!! VIX ended around 19… not exactly reflecting stock confidence

A panic bid into the close (not helped by VIX this time)…

Enabled The Dow (only) to erase its losses post Comey’s original Weiner laptop comment…

Post-Weiner – Gold is still holding gains…

But while the world points to Comey’s “get out of jail free” card as the catalyst, we note that across almost every asset class, extremely important technical levels played a major role today:

  • S&P 500 rallied the most in 8 months, bouncing off its close Friday perfectly at its 200-day moving average (2084).
  • Trannies smashed through recent high stops (up 2.9% – best in 8 months) to one-year highs.
  • The Dow spiked most in 8 months (over 300 points), ripping back through 18,000, to its 50DMA (18207) and 100DMA (18,244) (Dow also tagged unchanged from Comey’s Weinergate comment).
  • Nasdaq exploded over 2% – biggest since March – perfectly tagging the 100-day moving average at 5,145.
  • Financials bounced perfectly off their 50DMA, breaking stops above recent highs.
  • HYG soars most in 4 months to 85.94 – the 100-day moving-average.
  • Gold dumped most in a month dropping to its 200-day moving-average at $1281.

The Dow is perhaps the clearest of all the majors from a technical perspective…

Futures show the exuberant start and then ramp at US Open…

But cash indices show the meltup panic at the close sending Trannies soaring…

Biggest short-squeeze in 3 months…

Bonds weren’t buying the exuberance…

Treasury yields rose across the curve but one glance at the chart and its clear that bonds went absolutely nowhere from the open

The USD Index jumped most in a month…

With Yen weakness the biggest driver…

Of course the big move was a kneejerk rally in the Mexican Peso, but note that it went nowhere once it had erased the Comey drop…

Copper soared on the day (and crude gained – notice it bounced perfectly off unch) as PMs dipped on USD strength

Amazingly, Copper is now up 11 days in a row to 12-month highs…

Before we leave though, we have seen this pattern of exuberant bounces before…


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