Stop Hunt Retraces Post-Election Market Losses

Tyler Durden's picture

Equity markets have pulled away from the rest of risk in a wonderfully dramatic manner this morning as they set their sights on the pre-election highs and the running of the stops. We are now back at Bernanke QE3 spike levels - which we are sure makes perfect sense to someone - anyone, Bueller? For now, it seems like we auctioned up to clear out any last remaining weak hand shorts given the lack of support for this from any other market.

 

Stocks on their own relative to risk...

 

Back to Election levels and pre-Bernanke spike levels...

 

and a close up on the algo ramp-a-palooza stop run...

There is also speculation a customer may have put on a call spread with a $1.5 billion total delta position, although the straight line ramp in ES over a span of minutes which should have been done in a dark pool to avoid slippage, instead of VWAP, confirms there was a much more "demonstrative" component to this latest stop hunt.