It seems Janet has some work to do on her "communications". Judging by today's follow-through on dismal retail sales data (and a miss for claims), stocks, bonds, and gold screamed higher (and the USD lower) suggesting an increasing crowd does not believe the QEeen's "stay the taper course" meme. The S&P 500 rallied 25pts off early lows - practically in a straight-line, dislocated from JPY-carry, dislocated from bonds, and coupled almost perfectly with gold after Europe close. Nasdaq is up 6 days in a row and back near multi-year highs (+1.5% in 2014) as "most shorted" stocks were ripped 2.5% higher intraday. Gold closed back above $1,300 (outperforming on the week and since Taper); Treasury yields tumbled 6-7bps; and the USD Index dropped 0.5% led by EUR and GDP strength. VIX traded under 14% briefly. Bad news is great news once again. This is the Nasdaq's best 6-day run in 27 months.
The Dow is holding around 16,000 and at a 50% retrace of the 2014 losses...
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The Nasdaq bounced perfectly off its 100DMA and has rallied 6.8% in the last 6 days - its best run since December 2011...
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This morning saw Nasdaq open right at unchanged for 2014 and found support...
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As "most shorted" stocks were crushed higher...
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QE-maven Materials and Discretionary and Homebuilders are leading the way off last week's lows as they anticipated Yellen printing to oblivion... but she didn't!!
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But stocks decoupled from USDJPY and bonds - and found a new friend in gold...
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Commodities all rallied today with Gold outperforming...
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And Treasuries (espeially the long-end) have almost recovered all the post-Yellen losses...
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FX markets were more volatile with EUR and GBP strength dragging the USD Index lower...
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Charts: Bloomberg
Bonus Chart: The Dow was interesting as Dow futures just managed to tag yesterday's highs (run those stops) and then rolled over into and after the close...
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Bonus Bonus Chart: The Nikkei 225 is at its cheapest in six months to the Dow...
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