Markets Gone Wild

Tyler Durden's picture

It all makes so much sense... risk markets everywhere have gone vertical. As we noted earlier, "with the US trading session today at half mast, expect another  record low volume half-trading day, which means a risk levitation is practically guaranteed." QED. And yet something appears broken - just look at these cross-asset class charts... oh and of course EURUSD surges to 1.2952 as the Eurogroup Summit has been confirmed as 'called off'. Is repatriation risk-off flow driving the correlated ignorance of algo-based risk-on? 300 pips in 10 days. S&P 500 back above 1400. Gold pushing $1750. This move seems to be entirely driven by technical stop-runs everywhere as EURUSD blows through its 50DMA, S&P 500 Futures cross above the 100DMA, and Gold blows through the 50DMA. Efficient markets forever...

EURUSD stupidity - or all reptariation all the time...

 

Commodities mad...

 

and S&P 500 futures have auctioned up to post-election open and Draghi levels...

 

The move appears extremely synthetic - i.e. top-down - with big individual names largely unmoved by today's action.

 

Charts: Bloomberg