For the second time in 2013, Congress folded and stocks erupted higher. The early exuberance went dead during the middle of the day as stocks scambled back to pre-shutdown levels and stayed there but as 3pm hit (and rumors of a CR-amendment to the House DL proposal), volume exploded and broad equity indices filled all gaps and pressed up through technical levels and month- and week-to-date green levels. Much was made of the close-to-close gains in the MoMo names, but closer inspection shows they actually closed below their opening squeeze levels - on a day when the NASDAQ saw its best day of the year. Precious metals were lower on the day but dumped as the 3pm move occurred. Bonds were less impressed with the 30Y (solid auction) unchanged and T-Bills selling off ignoring equity exuberance. The USD closed unchanged.
This is the best day in 2013 aside from the January 2nd year-opening excuberance whose catalyst was theoretically in 2012 anyway.
Quite a day for stocks...
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As every index ramped at exactly the same time...
But T-Bills didn't seem to be buying the exuberance in stocks...
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FX markets were surprisingly quiet - though under the surface EURJPY was in charge of 'carrying' stocks higher
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Gold (and silver) were smacked early on as normal around 830ET then as the equity ramp hit late on were crushed once again...
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Silver was slammed back down to shutdown levels...
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But Treasuries rallied as stocks did...
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The cross-asset-class story since the Shutdown...
[11]
Charts: Bloomberg