Stocks Hit Record Highs As Draghi Promise Trumps OPEC Pessimism

Yesterday higher oil prices were the catalyst for higher stock prices. Today lower prices - after OPEC slashed growth expectations - were "unequivocally" positive for Americans and sent Trannies soaring.  Of course, it was Draghi's promise that there's more to come that sustained USDJPY's levitation and thus stocks. Treasury yields slid 2-4bps higher on the day as the USDollar surged to +1.2% on the week after Draghi's chatter slammed EURUSD below 1.24. Gold and silver were flat (despite USD strength) as oil prices dipped to $78. HY credit diverged notably after EU closed as managers appeared to protect bond positions into the jobs data. VIX pumped then dumped and cracked back to a 13 handle as stocks closed at record highs (right before the uncertainty of tomorrow's NFP).

 

Since Bullard's utterance, we have had 12 up days and 4 down... (look at volume!)

 

Spot the difference...

 

Trannies were the day's big winners...

 

From Draghi's promise...

 

As VIX was smashed back under 14...

 

Crude and Stocks can't make up their mind on the correlation...

 

Financial stocks are screaming higher... financial credit markets are not... does this look sustainable?

 

HY credit was not playing along either...

 

Treasury yields pushed 2-4bps higher after Draghi promised moar... 4th day in a row of jiggery pokery between US open and EU close...

 

The USDollar surged after Draghi's promise, now up 1.2% on the week...

 

EURUSD  - spot the Draghi promise...

 

Gold and silver managed very small gains on the day even as the USDollar surged.. but oil slipped lower...

 

Charts: Bloomberg

Bonus Chart: It's that time of the month...