Dow Soars 350 Points In 27 Hours

Following yesterday's significant volume and major short-squeeze ('most shorted' ramped 4% off the lows), today saw neither with volumes light and equity performance prety much balance across the board. Most of the strength occurred overnight with stocks dumping off the open, ramped on Europe's close, modestly sold on Yellen's speech, then ramped into the close. The Dow and Trannies made it all the way back up to unchanged from the March FOMC statement/press conference.  Every status quo hugging asset-getherer heard what they wanted from Yellen - except that Treasuries sold off at the short-end and flattened dramatically to near 5-year lows (not exactly the dovish hype headlines are made of). Copper jumped and oil dumped with gold and silver treading water on the day. VIX was monkey-hammered lower and stocks tracked it. Bottom line, while stock bulls hear dovishness, bond traders are calling Yellen's bluff.

Who do you believe?

 

The only chart that matters...

 

Dow back into the green from the March FOMC...

 

and Trannies leading the way on the week

 

High beta growth hype stocks are back in the green on the week with TWTR just fucking awesome dude...(before you breeze by - look at the scale of performance shifts in th elast 3 days... that's a 24% swing)

 

VIX has roundtripped from last week's highs and stocks are trading tock for tick with it...

 

Treasuries changed course notably on Yellen's speech...

 

Talking heads prefer to believe that stocks strength was on the back of "dovish" talk from Yellen but the following chart shows the market's reaction... not exactly buying her talk...

 

5s30s dropped below 180bps to the lowest since oct 2009

 

"most shorted" stocks are up 4% off yesterday's lows (double the market's performance) as it seems the big push into shorts was just too much for the market to bear and the snap back was just as vicious. Notably today's flatness saw little to no focus on short-squezes...

 

 

Charts: Bloomberg

Bonus Chart: A reminder of the "costs" imposed on Russia (relative to the US)...