Brexit-Bounce Fades As Short-Interest-Slump Signals Crash Concerns Surprise!! After Q3's "use it or lose it" spending spree sent US macro data soaring unilaterally, October has begun with a collapse... Source: Bloomberg A trade deal (or not)? Brexit deal (or not)? Turkey peace deal (or not)? But retail sales slump, industrial production tumbles, housing starts/permits plunge... Chinese stocks were flat overnight, with small-cap/tech-heavy ChiNext the biggest loser on the week so far... Source: Bloomberg European stocks ended lower, despite a surge on Brexit hopes... Source: Bloomberg US equities were mixed with Trannies and Small Caps best (squeezed) while S&P, Dow, and Nasdaq were all scrambling to hold gains... Once again S&P 500 algos were focused on the 3,000 level... Chaos in NFLX stock price... SDC shareholders aren't smiling now... The VIX term structure has steepened dramatically in the last week... Source: Bloomberg Now at its steepest since Feb 2018... Source: Bloomberg Treasury yields were uniformly higher by around 1bps on the day... Source: Bloomberg But there was some vol intraday... Source: Bloomberg Despite a lot of jawboning (and stocks within 1% of record highs), the market is still demanding a rate-cut in October... Source: Bloomberg The Dollar tumbled for the 3rd straight day (down 6 of last 7 days)... Source: Bloomberg Almost entirely erasing the year-to-date gains... Source: Bloomberg Cable chopped around all day on various Brexit headlines but ended higher... Source: Bloomberg The Turkish Lira was insanely volatile (stops run both ways) as Pence-Erdogan spoke and agreed a ceasefire... Source: Bloomberg Cryptos were higher on the day, spiking early in European session... Source: Bloomberg Bitcoin rallied back above $8,000... Source: Bloomberg Dollar weakness supported commodities across the board with Silver and Crude best on the day (but only PMs are higher on the week)... Source: Bloomberg Despite a huge crude build and record production, the algos decided it was time to panic-bid WTI up to a $54 handle... Gold futures tagged $1500 but were unable to hold it... And finally, the most recent surge in stocks since the start of October has been a major short-squeeze... Source: Bloomberg Which has plummeted overall short-interest to a critical level that has, in the past, led to crashes in stocks... Source: Bloomberg Tyler Durden Thu, 10/17/2019 - 16:00 Tags Business Finance