Supported by economic weakness overnight in Asia and a weak Philly Fed print (bad news is good news) along with hope from more QE out of the BoJ, JPY weakness floated all boats today as homebuilders and financials surged lifting stocks tick for tick with carry. Yellen's nomination provided yet another lift. Treasuries rallied (though the long-end remains +10bps on the week). Precious metals were monkey-hammered early then dead for the rest of the day (-4% on the week) as oil prices surged higher ( +1.6% on the week). The USD Index glitched lower on no neg rates chatter early from Europe but the quietness in the index hid major dispersion as AUD was craushed (now 1.6% lower on the week). Credit markets rallied (but remain well off stocks) and VIX was compressed as low volumes meant a slow lift higher (and Trannies best day in almost 5 weeks). Shorts suffered the most until POMO ended - tripling market performance.
The Dow closed above 16,000 for the first time ever...
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The S&P managed to get back perfectly to yesterday's highs...
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The early going was dominated by a smash higher in the most shorted names... again...
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As homebuilders and financials soared...
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Credit rallied but has a long way to go to catch up with stocks...
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Commodities were dispersed with PMs weak and energy/growth strong...
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As FX markets saw a small down day in the USD Index but major buying relative to JPY, CAD, and AUD...
Treasuries rallied modestly after Yellen's nomination...
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With USDJPY crossing back over 101, stocks were simply all about the JPY carry trade once again as the promise of Kuroda wins the day...
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Charts: Bloomberg