Bullard Bounce 2.0 - Stocks Surge By Most Since September; Bonds, Dollar Flat

Bullard's back bitches!!!

 

The "intervention" began overnight as The National Team stepped in to China's most tech-heavy index ChiNext for a 9.5% rally rampapalooza off the opening lows

 

Then "He" spoke and the market obeyed... Dow surged 411 points off the lows - Even better than Bullard Bounce 101 (a 400 point bounce)

 

Will it be deja vu all over again?

 

It does not look like it - S&P Futs were ramped to VWAP then stalled, then ramped to Tuesday's cash close... then dumped...

 

However, despite today's epic Bullard Bounce, Small Caps are still suffering the worst start to a year ever...

 

The day started off as usual with a purge as overnight strength/stability was dumped at the open... but then Bullard Spaketh The Gospel Of StickSave and algos took over levitating with crude, then handing off to USDJPY once that ran out of steam...and then JPY handed off to VIX in the last hour...

 

Today was a very good day for US equities...At the highs, things were awesome...

  • Nasdaq up 3% - best day in 5 months
  • S&P up 2.2% - best day in 4 months
  • Russell 2000 up 2.2% - best day in 3 months
  • Dow up 1.9% - best day in 5 weeks

Before the end of day weakness...

 

It seems Bullard's Bounce did nothing to reduce the size of the policy error post Fed rate-hike...

 

FANTAsy stocks v-shape recovered...but dumped into the close..

 

VIX decoupled through the middle of the day but then was initiated for momo in the last hour...

 

Overall credit markets rallied but remain notably decoupled..

 

Energy credit markets spiked 35bps wider today despite oil's rally and energy stocks' gains...

 

Treasury yields trod water largely soaking up a weak auction and yesterday's huge supply from Inbev...

 

The USDollar Index flip-flopped after ECB comments early ending the day almost unchanged...

 

Commodities very mixed with gold and silver slammed and copper and crude ramped...

 

Silver was capped atits 50DMA...

 

The oil move looks a lot like an algo stop-hunt... ahead of OPEX tomorrow...

 

Charts: Bloomberg