Commodities, Stocks, & Bond Yields Plunge As Super-Short-Squeeze Stalls

We suspect the following will be heard a little more this week than last…

The squeeze is over… for now thanks To Fed's Fischer…After 10 straight days without dropping, "Most Shorted" tumbled the most in 2 months…

And crude oil ETF short-squeeze is over – Oil ETF long/short is back to recent norms…

And the major indices were extremely overbought… Trannies are as overbought as they were at the peak in Nov 2014 (after Bullard's QE4 bounce)…

And Small Caps are as overbought as they were at their peak in June 2015.

Which left stocks sliding after dismal China trade data and Goldman pouring cold water on the crude ramp…

Futures show the reactions as Japanese GDP stayed in recession, China Trade Data disappointed, Germany beat… and reality struck in the crude complex…

Leaving S&P Futures right at the crucial trendline…

As VIX was dumped in the last minute to ensure 1980 was held…

VIX surged near 19 again…

Energy & Financials went from winners to biggest losers very quick… This was energy sector's 2nd biggest daily drop since August Black Monday

We're gonna need another Mclendon death…

And Tilson's short LL again..

Oil decoupled from stocks…but stocks caught down in the end amid Crude's drop in 2 weeks

Bonds decoupled from stocks… but they recoupled into the close…

And after this yuuge rally aimed at supporting energy stocks to get secondaries (and banks to unload), credit risk on the junkiest junk has not improved at all…widest since 2009

And with everyone chasing HYG (not realizing this is a placeholder for fund manager cash as the primary market is dead for now – but due to pick up), we thought the following chart might help with some rationality…