It all makes so much sense... risk markets everywhere have gone vertical. As we noted earlier [2], "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...
[3]
Commodities mad...
[4]
and S&P 500 futures have auctioned up to post-election open and Draghi levels...
[5]
The move appears extremely synthetic - i.e. top-down - with big individual names largely unmoved by today's action.
Charts: Bloomberg