Wall Street Has Turned Into a Rug n' Shrug Massage Parlor

A quick (and exceedingly rare, these days) "rug-pull" in the market earlier this morning saw the Death Valley-hot Nasdaq actually flip red before bouncing back to green as I write this. Monsters like TSLA continue to squeeze and put stubborn and numerous shorts in the unenviable position of them pondering whether they should just go ahead and throw in the towel in the form of covering, or buying back their borrowed shares at a (likely) significantly higher price than their initial short entry.

Indeed, to think that legends on The Street like Jim Chanos were on CNBC near the March lows, looking like he had another potential Enron-esque grand slam on his hands, as TSLA traded around $350, is frankly mind-boggling as the stock is within spitting distance of $2000 as we speak. 

As for the market at-large, small and the overlooked mid-cap stocks are leading lower. Banks look rough, too, with WFC at risk of a major breakdown from an extended sideways base featuring lame attempts at bouncing, even for near-term relief. 

While the mid-caps, seen below on the MDY ETF monthly timeframe, may be close to completing the "right shoulder" of a potential multi-year top (the mid-caps actually have a deep history of forming well-defined market tops in prior cycles which proved uniquely prophetic of the coming bear markets), the reality is that the Nasdaq is going to need to actually stay down during one of these rug-pulls. 

As we know, the Nazzy has ruthlessly shrugged off each rug-pull attempt since March with great vigor, before massaging out fresh highs in no time at all.