Early volatility around Draghi's lack of easing (and a subsequent surge in EURUSD) gave way to excess exuberance as USDJPY ramped over almost 100 pips (on absolutely no news whatsoever) on the day dragging the S&P 500 25 points higher from the day's lows, back over its 100DMA and back to unchanged to the December taper. Trannies topped the taper (+1.5% on the day) but stocks remain red on the week. All this re-risking ahead of tomorrow's major noise-soaked jobs data... Bonds sold off once again but from 10amET, which coincided with the end of the initial JPY ramp, Treasuries, gold, and the USD all trod water as stocks and JPY pushed on ahead. Systemic cross-asset class correlation surged on the day to well over 0.9. S&P and Dow have best day since Mid-December; Trannies almost best day since October - and all this before tomorrow's crucial weather-impacted jobs report - make sense to anyone? TWTR -24% at $50.
The S&P recovers 75% of its Monday dump...
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The only chart that matters... notice that the initial opening ramp lifted USDJPY perfectly to 102...
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Trannies were best on the day with the Dow having its best day in almost 2 months... but they all remain lower on the week...
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The S&P rallied back to unchanged post-Taper
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Stocks benefitted from a pretty significatng short squeeze at the open (from yesterday's over-zealous shorting)...
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Gold and Bonds decoupled from equity exuberance soon after the initial JPY ramp faded (and crossed 102)
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FX was relatively quiet apart from an epic ramp in EUR on Draghi's "no QE discussion" comments and the corresponding JPY crumble...
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Over all bond yields are up notably on the week with curve steepening... (with yields up 8-10bps from the ADP data miss)...
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Silver is setting up fro its best week in 6 months... as copper, gold, and oil limp sideways to higher...
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Charts: Bloomberg
Bonus Chart: Intraday Correlation across multiple risk factors (Stocks, bonds, FX carry, credit, and commodities) surged very systemically...
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Bonus Bonus Chart: Twurmoil...
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