Earlier rumors of a liquidation-based selling have proven to be false, as gold has surged by over $12 from the day's lows to its highest level in months.
Elsewhere, the new carry correlation trade confirms it is truly the 2s10s30s butterfly that is the new source of funding for stocks, and for spiking HFT momentum. And the big institutions who have now gamed the latest funding pair, continue to sell into the HFT bid, as stocks rise purely as a side effect of a normalization in the butterfly wings, and never on any actual fundamentals, which as David Rosenberg once again demonstrated earlier, continue to get worse and worse. But remember: GM has to IPO today, and Geithner can't possibly do it on a downtick, let alone a red close. Also, we have another POMO tomorrow as the Fed once again prepares to give a blank check to the PDs to ramp the S&P another 3% higher. All in all, another day in Central Planning.