Massive Stock Squeeze Lifts Small Caps Into Month-End; Gold Closes At Record High


The month-/quarter-end rebalance-fest continued with a giant short-squeeze offsetting the USD$32 billion in US equities to sell given the moves in stocks and bonds in Q1...

US Stocks up (and non-stop in Q1) while bond (prices) drifted lower (yields higher)...

Source: Bloomberg

Nasdaq lagged again on the day (relabalancing) but Small Caps face-ripped higher on the day. Overnight saw a late-day buying panic (as opposed to the last two days of dumping in the last 30 minutes) which lifted Nasdaq green and small caps to a giant day...

Source: MarketWatch

The US run up has a big move expected on the ASX 200 with Futures up 60 points!

Trump-mania continued with DJT up another 15% overnight...

Overnight also saw a big resurgent net inflow (over $417m) into BTC ETFs...

Source: Bloomberg

Which should have seen Bitcoin perform strongly but because of SEC vs COIN headlines allowed the futures sellers to drag Bitcoin down to USD$69,000

Away from the headlines that are usually front and center on CNBC, the FX market had quite a day as USDJPY tested a key level and was desperately jawboned by every Japanese official that could fog a mirror that "we'll do something really big, don't make us!!".

152 is the weakest for the yen against the dollar since 1990... and is the same level that prompted intervention in 2022...

Meanwhile , Gold continues to drift higher, testing back up towards USD$2,200 overnight and in USD terms closed at a record price!

Lastly, here are two charts which illustrate how one can protect themselves financially from Govt incompetence.

if you're Japanese, gold has been a great bet...

Source: Bloomberg

...and so has bitcoin...

Source: Bloomberg

Perfect examples of why Gold and Bitcoin are both really the best stores of Wealth you can find.

Happy Thursday!

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