Since 13 minutes after the US equity market opened, the NYSE was broken for 150 symbols from AAPL to XIV (inverse VIX). KO, MCD, & IBM all fell notably on earnings. Credit, Treasuries, and JPY carry all traded 'risk-off'. But none of that mattered...broken markets and ECB rumors were all that was needed - Nasdaq soared by most in 2014 today, extending its 3-day swing to the best since Dec 2011. Despite USDollar strength (driven by EUR weakness), commodities all rallied with Copper and oil best (WTI >$83 again) but volatility in crude was significant. Treasury yields were mixed (flat to 5Y, +2-3bps 10Y & 30Y). VIX was smashed briefly to a 15 handle (down over 50% from its peak last week). Trannies are up almost 8% from Bullard's "QE4" comment last week... normal? Volume was dismally below average.
Nasdaq's best day in 2014, best 3-day swing in almost 3 years...
[11]
Most shorted stocks rose 2.4% - the biggest day in 7 months!
[12]
Only 2 things mattered today... ECB rumors and a Broken NYSE...
[13]
As cash indices exploded today - Dow up 207 (despite -65 points from IBM, KO, and MCD) - Trannies up over 3%
[14]
VIX was smashed lower (to a 15 handle briefly)...
[15]
Led by a surge in XIV (inverse VIX ETF) after NYSE broke - and WTF was that huge volume spike?!
[16]
As all the major indices explode off the Bullard QE4 comments...
[17]
The long bond and credit were not buying the plan...
[18]
Nor was JPY carry...
[19]
Treasuries did sell off intrday but steepened just 2-3bps on the day
[20]
As the USDollar surged on EUR weakness after rumors of ECB corporate bond buying hit... leaving the USD unchanged from Friday
[21]
Despite the USD strength, commodities gained ground - with an earkly spike in gold and silver faded as oil and copper rose...
[22]
Notably Copper is best post China GDP 'beat' and Gold almost roundtripped...
[23]
Charts: Bloomberg
Bonus Chart: The McClellan Oscillator (tracks internal breadth changes) has reached its highest since Sept 2013 (and signaled excess buying then)...
[24]
