Despite two desperate attempts to juice stocks overnight via JPY, US equities opened red and got redder. The selling climaxed when Europe closed and stocks rallied handsomely "off the lows" proving Tepper wrong and the rest of CNBC right (right?) The S&P ramped back up perfectly to VWAP (thank you Michelle) as 330ET BTFD'ers ensured it closed back above the all-important 50-day-moving-average. The Dow did not bounce like its higher-beta short-squeezing cousins and dropped back into the red for 2014. Away from stocks, bonds just kept rallying - but everyone said that couldn't happen - to new multi-month low yields for 10Y and 30Y (-13bps on the week). Commodities lost ground with gold back under $1300 as the USD ripped and dipped to close unchanged on the day. VIX popped back over 13 with its biggest rise in 5 weeks.
Don't forget, Europe will open again in a few hours.
Thanks Michelle...
Thanks to Michelle, the algos ramped all the way back to VWAP
The S&P 500 cash index is down for the week but bounced off its 50DMA for now...
The dump stopped when Europe closed for the 3rd day in a row...
The day in momos...
Dow dumps to red for 2014...
Twice overnight USDJPY was run up in an attempt to sprk some momenum into stocks...
VIX rose back over 13 but did its best to support stocks late-day BTFD ramp...
Bonds rallied once again... to fresh multi-month lows...
Charts: Bloomberg
Bonus Chart: Lots of chatter about how low 'high yield' yields are today and that's a bubble... except that the YIELD does not matter - it's the risk premium that matters and that has been showing notable weakness for a while... yes one can relever (good for stocks, bad for credit) but that only happens at the end of the cycle and corporate leverage is already above its previous peak...










