The Dow has retraced half of last week's losses as exactly what everyone expected (a "yes" vote followed by US/EU sanctions and no actions yet by Putin) occurred. The S&P was ramped thanks to the always-happy-to-help EURJPY back into the green for 2014. The big ramp occurred heading into the US open to spark momentum and save the day but weakness into the close suggests that the early short squeeze ran out of ammo relatively quickly. Volume overall was extremely weak - lowest non-holiday volume in 5 months. VIX's notable divergence from Friday likely provided some of the ammo for the early ramp. Gold and Treasuries were relatively unimpressed by equity exuberance until Europe closed and then were sold quite notably (TSYs +3-4bps, Gold/Silver -1.4%) Late-day weakness pushed Nasdaq back to unchanged post-Putin's conference call.
Today was a very low volume day in stocks...
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The Dow has recovered half of its losses..
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But EURJPY was in charge...
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But it seemed the action hotted up outside of stocks as Europe closed...
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We suspect the hedging efforts into the close on Friday provided some notable ammo for the early squeeze..
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And the early squeeze gave planty back into the close...
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Copper and Oil rallied post-European-close as Gold and Silver sold off tick for tick...
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Charts: Bloomberg
Bonus Chart: Russians are loving the sanctions...
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