Rocket Blasts-Off As Big-Tech, Black Gold, Bitcoin, & The Buck Breakdown Rocket Companies went to the moon today... RKT was 'Gamma Squeezed' over 60% higher today... As WSB'ers got a hold of the tech-driven real estate, mortgage, and financial services business that went public last year. It was quite a run... as deep OTM calls were bid in size ($45S thru $50S expiring in 2 weeks) Source: Bloomberg Largely thanks to this a massive short interest... https://twitter.com/search?q=%24RKT&src=ctag&ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); short interest is $1.21 BN 49.70M shares shorted 45.83% of Float 31.42% S3 SI% Float 29.32% fee & rising to over +50% Shares shorted up +3.8M shares, worth $92M, +8.2%, last week. Shorts down -$724M in 2021 mark-to-market losses; down -$497M on today's +41% move pic.twitter.com/aXn4G6y4ZD — Ihor Dusaniwsky (@ihors3) https://twitter.com/ihors3/status/1366818620098150403?ref_src=twsrc%5Etfw!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); Well over $10 billion of volume traded today... umm... Source: Bloomberg Notably, as RKT soared, it appears hedgies were forced to dump some of their favorites once again... Source: Bloomberg As RKT shares became extremely hard-to-borrow... Source: Bloomberg And while RKT was taking off, crude was crashing (OPEC+ headlines that "the market could handle more barrels")... And crypto was crushed, with Bitcoin tagging $50K overnight and sliding (some chatter that the drop around 11amET was driven by Gensler comments)... Source: Bloomberg And Ethereum fell back below $1500... Source: Bloomberg Stocks were all lower on the day with The Dow the least bad (clinging to unch until the last hour) as Small Caps and Nasdaq lagged (after yesterday's biggest day in months)... NOTE - selling was heavy at the Asia open, Europe open, and US open... and US close. Nasdaq's tumble left it right at its 50DMA... Materials outperformed today as Tech lagged Source: Bloomberg Momentum rolled over again today after two days of gains... Source: Bloomberg Facebook stock tumbled late on after the CFO warned that recovery from COVID could stymie growth.... ARKK and TSLA tumbled today - but remain higher on the week... Stock-Bond correlation (historically negatively related) reached extreme positive levels today...the last time correlation was this high was July 2017 and 10Y Yields crashed 40bps in the month following... Source: Bloomberg Treasuries were mixed today with the belly outperforming the tails (2Y unch, 5Y -3bps, 30Y +1bps)... Source: Bloomberg 10Y Yields stuck in a narrow range for second day... Source: Bloomberg And as yields stabilize so bond implied vol tumbles... Source: Bloomberg Real yields have tumbled in the last three days, but gold (for now) is ignoring it... Source: Bloomberg The Dollar ended lower for the second day in a row - after another roller-coaster... Source: Bloomberg Gold managed modest gains as the dollar slipped... And silver jumped back up towards $27... Finally, if history is any guide, we are due for a pause in stocks. Ryan Detrick, chief market strategist at LPL Financial LLC said “History would say be open to some type of weakness or consolidation"... Source: Bloomberg The post cited the S&P 500 Index’s performance after bull markets that began in 1982 and 2009, the two fastest starters before the current advance. Both rallies faltered near the one-year mark, and the S&P 500 was little changed to lower six months later. Tyler Durden Tue, 03/02/2021 - 16:02