It seems like the last 2 days have been a massive NASDAQ-TWTR pairs trade... Today saw broad stock indices best day in a month despite the early "good news is bad news" sell-off as newly minted TWTR heads towards its first bear market threshold off the highs. The Dow managed to get back to a record high close by the end of the day. Treasury prices were clubbed like a baby seal with yields jumping their most in over 4 months. Shorts were grossly squeezed today ("most shorted +2.9% vs Russell +1.1%). Gold was down 1.4% on the day (oil and copper flat) and 2% on the week. VIX was banged back under 13% and the JPY weakness sparked by the taper-on-driven USD strength kept carry traders alive. All in all - only equity markets reacted "positively" to the good news with a panic-buying-frenzy in the last 30 minutes as rates, FX, and precious metals all shifted in a "taper-on" trend...
POMO and 330RAMP took care of business today...
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All you need to know about today in 2 tweets...
Stocks desperate for today's Mega POMO to begin already
— zerohedge (@zerohedge) November 8, 2013 [9]
It's 1 hour until 3:30 pm. Do you know where Ramp Capital LLC is?
— zerohedge (@zerohedge) November 8, 2013 [10]
Volume was notably lower today...
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Two words - short squeeze...
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Treasuries were battered to a ley technical levels...
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But rates, Gold, and stocks diverged...
as PMs slid with oil flat...
The USD was well bid after the "good news" this morning - whether that implicit JPY weakness (that drove stocks via carry) was 'real' risk-on or just taper concerns will have to be seen...
EURJPY was in charge again - as post jobs POMO ripped us up to convergence...
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Charts: Bloomberg
Bonus Chart - Another all-time low in TWTR (within 1% of a bear market...)
