The Un-Taper? Stocks Up, Bonds Up, Gold Up, Oil Up, USD Down

Tyler Durden's picture

It seems Janet has some work to do on her "communications". Judging by today's follow-through on dismal retail sales data (and a miss for claims), stocks, bonds, and gold screamed higher (and the USD lower) suggesting an increasing crowd does not believe the QEeen's "stay the taper course" meme. The S&P 500 rallied 25pts off early lows - practically in a straight-line, dislocated from JPY-carry, dislocated from bonds, and coupled almost perfectly with gold after Europe close. Nasdaq is up 6 days in a row and back near multi-year highs (+1.5% in 2014) as "most shorted" stocks were ripped 2.5% higher intraday. Gold closed back above $1,300 (outperforming on the week and since Taper); Treasury yields tumbled 6-7bps; and the USD Index dropped 0.5% led by EUR and GDP strength. VIX traded under 14% briefly. Bad news is great news once again. This is the Nasdaq's best 6-day run in 27 months.

 

The Dow is holding around 16,000 and at a 50% retrace of the 2014 losses...

 

The Nasdaq bounced perfectly off its 100DMA and has rallied 6.8% in the last 6 days - its best run since December 2011...

 

This morning saw Nasdaq open right at unchanged for 2014 and found support...

 

As "most shorted" stocks were crushed higher...

 

QE-maven Materials and Discretionary and Homebuilders are leading the way off last week's lows as they anticipated Yellen printing to oblivion... but she didn't!!

 

But stocks decoupled from USDJPY and bonds - and found a new friend in gold...

 

Commodities all rallied today with Gold outperforming...

 

And Treasuries (espeially the long-end) have almost recovered all the post-Yellen losses...

 

FX markets were more volatile with EUR and GBP strength dragging the USD Index lower...

 

 

Charts: Bloomberg

Bonus Chart: The Dow was interesting as Dow futures just managed to tag yesterday's highs (run those stops) and then rolled over into and after the close...

 

Bonus Bonus Chart: The Nikkei 225 is at its cheapest in six months to the Dow...