It would appear the BFTATH mentaility has morphed into a BTFICBMD perspective as the "market" shrugs off an 'apparently expected' ICBM launch to soar to new record highs with the best day in stocks for months (if not years). USDJPY was in charge intraday as 102 was flushed through (with JPY's biggest drop in 2 months) and dragged stocks (led by the "most-shorted") non-stop. Equity volumes were 20-30% below yesterday's. The USD was relatively unmoved on the day (modestly higher oddly on a risk-on day). Gold and oil prices slipped (but remain in the green on the week) as Silver slipped into the red. Copper rallied. Treasury yields surged 6-8bps (the biggest jump in 4 months) as 2s10s steepened 6bps. VIX was cracked 2 vols lower to 14%. The S&P closed at 1873, just 27 points shy of Goldman's 2014 year-end target.
For a brief few minutes, stocks actually sold off - when Russia launched an ICBM - but what a great opportunity to buy that was:
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and across all the indices - the launch of an ICBM was hardly noticed (especially Trannies)... evidently the bulk of gains wer ein the US open to EU close session...
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Credit was a little more apprehensive of the record highs... from the EU close and again from the ICBM launch...
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But USDJPY was in charge of stocks... fun-durr-mentals!!!
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Which smashed the Russell to all-time-highs, the S&P to all-time highs (and therefore green for 2014) with only the Dow in the red still since the end of 2013...
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Financials pushed back into the green for 2014 leading the way along with Healthcare (Biotechs) today...
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The Fantastic-Five were mixed today with all of them weak after Europe closed...
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Treasury yields smashed higher with the biggest yield rise in 4 months... with notable steepening in 2s10s
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The USD went dead-stick after Europe's close to end up around 0.5% on the week...
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While correlations across risk assets were high, the afternoon - post US open, gold decoupled - not selling off as much as would have been expected...
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Gold and oil sold off and recoupled with copper as Silver slid into the red on the week...
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Since its 1979 inception, the small-cap Russell 2000 has been +3% to a 52-week high only 1 other time, Feb 29, 2000... that didn't end well...
Charts: Bloomberg
Bonus Chart: Stocks are the most divergent from broad risk sentiment since the big correction in 2012 (h/t @Not_Jim_Cramer)
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Bonus Bonus Chart: The Nikkei's disconnect from USDJPY has been recoupled...
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