Morning 2-1

January returns Melvin Capital lost ——> 53% or approx. $7.25 Billion Point72 lost ————–> 10% or approx. $1.9 Billion Citadel lost —————> 3% or approx. $1.05 Billion #RobinHood short squeeze of the decade on some big hedge funds: $GME $KOSS $AMC $BB  @invictuscapital

The Silver Squeeze talked about on WSB is underway, prices touched an 8 year high. +11% so far take notice that Speculators are not Short so lasting success in this latest endeavor seems unlikely, in sympathy Platinum +5%, Palladium +3% and Gold +1 Gold/Silver 6-year lows … BlackRock Inc.’s iShares Silver Trust, the largest exchange-traded product tracking the metal, recorded an unprecedented $944 million net inflow on Friday……Seeing some life overnight is Nat Gas winter is not gone cold weather forecast next 2 weeks Gas + 7%

 My 2 cents option flow or gamma squeeze a big part of the Roller coaster ride in GME, thus Impacting Russell and XRT, retail ETF/For the volatility to continue we need to watch open interest in Weekly options and of Course whether or not Robinhood stays open for business. Per BBG “Robinhood pared trading restrictions to eight companies, instead of 50, Opening new position is limited, CEO Tenev said Citadel did not pressure him to restrict trades.”

 Some early weakness in Stocks and Risk was disappointing PMI data out of China, Even though the PBOC injected liquidity for the first time in week. Via trading Economics “The Caixin China General Manufacturing PMI fell to a seven-month low of 51.5 in January 2021 from 53.0 in December, missing market consensus of 52.7.” Not good for Global Economy if China Going to slowdown. Lunar new year celebration starts next week I believe.

Virus:

 Some of the biggest pharmacies are set to take a central role in administering Covid-19 shots, hoping to avoid the logjams that slowed the rollout’s early days.  WSJ

Newly reported Covid-19 cases were down from a day earlier, as were hospitalizations and deaths, following a month when all three metrics hit records before abating. While it is good news that we are seeing a rapid decline in new cases, the levels are still higher than they were during any previous period,” said Shira Shafir, an associate professor of epidemiology at the University of California, Los Angeles.  WSJ

  EU trying to correct her vaccine rollout issues both Bayer and French Company Valneva pledge to support so Some hope that vaccines distribution picks up the pace.

Markets

 Stocks opened weaker due to china but have turned it around once European cash stocks opened, I guess not a surprise. Stoxx 50 +1.4%, Dax +1.26 After trading lower by some 40 handles Spoos =30 handles Nasdaq + 135 all 20 Stoxx 600 sectors higher led by basic Resources +3% (silver squeeze) technology +2.4% vaccine optimism likely the cause for move higher .2 year yields trading .1075 close to a break of ,10% 3 month libor lowest in years/ ever? Treasuries higher, Dollar higher, Stocks higher, Gold higher hmmm hard to connect a theme to today’s trade so far.

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