From just after the opening of futures late last night - when US equities knee-jerked up dramatically - stocks went only one way - lower. While of course its all unicorns and butterflies with a triple-digit gain for the Dow, the major indices all traded lower all day long on dismal volume as no one seemed interested in buying the Yellen-rip. AAPL collapsed -3.25%, closing back below its 200DMA, and dragged NASDAQ into the red for the day. Treasuries were all rallying handsomely and there was much rejoicing that the housing recovry will be back in full swing... and then it all fell apart and by the close the 10Y was unch, 30Y +4bps, and 5Y -6bps as the curve flattened notably (as bonds sold off with stocks). The USD surged off knee-jerk overnight lows (though ended -0.3% still) but that momentum during the day-session drove commodities all lower relatively uniformly (Oil, gold, and silver down 1.5 to 2%). What was most odd was that everything changed trend when OPRA broke...
Futures led the way but S&P 500 futures closed almost 15 points off their highs
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Stocks went one way only during the day-session... with the NASDAQ red by the close...
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and commodities appeared to trigger something when OPRA failed...
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and Treasuries kept blowing higher in yield...
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and AAPL's big day... notice the no volume flatline into the OPRA blow up and the volume as AAPL plunged....
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The US open saw no bids in stocks... and when OPRA failed - the selling accelerated...
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It seems that anyone with any dry powder left that wasnt flushed out at the open - loaded the boat with shorts... "most shorted" dramatically underperformed from the open...
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The question is - will the NKY rally up to the S&P or vice versa?
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Charts: Bloomberg