The typically more dovish Jim Bullard unleashed a torrent of "markets are wrong" this morning and along with dismal macro data sent stock reeling out of the gate - catching down to Treasury yields divergence since the Fed last week. Stocks stabilized as the hevay volume dump dried up and staggered sideways after POMO and Europe's close. Then USA went 1-0 down against Germany and VIX was dumped and stocks pumped and then double-pumped again to almost back to unchanged in the last hour. During all this excitment, bond yields slid lower (to 3-week lows); gold and silver pushed higher (though gold ended modestly lower on the day after China gold loans news); and credit entirely ignored the exuberant bounce...VIX closed unch along with stocks as indices were rescued from a notable red day via an epic AUDJPY lift and VIX slam on negligible volume.
Early on we wondered...
Do you see what happens larry when the HFT algos go on strike
— zerohedge (@zerohedge) June 26, 2014 [8]
But then this happened - totally normal and human...
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VIX was in charge...
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Fun-durr-mentals... as luckily stocks had AUDJPY to save the day...
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And in S&P Futures all the volume is on the down moves...(lower pane)
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Treasuries remain notably divergent since the Fed...
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And today was insane... (exactly the same deja vu all over again as yesterday- and that recoupled this morning)
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Credit markets did not buy the dip as exuberantly as stocks...
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Silver gained but gold dropped modestly...
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Charts: Bloomberg
Bonus Chart: 1987 Deja vu - Melt-up before the crash? [17]
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