Worst Global Economic Data In 4 Years Sparks Stocks Best Day In 6 Months

Dudley's "Downside Risks" and Draghi's "No Limits" were all it took to trump the worst global macro data since 2012 (JPM Global PMI) and send stocks soaring... Some quick thoughts from (ironically) 1930...

Worst global economy since 2012...

 

Best day for Nasdaq in six months...(and best first day of a month since 2013)

 

Futures show what really happened...

 

The Dow soared over 400 points off overnight lows, surging to the lows from the first trading of 2016... Bad News Is Great News once again!!

 

With financials leading the ripfest...

 

With financials managing to tag the 50DMA...

 

But seriously - are we going to fall for this again?

 

Ripped higher on the back of USDJPY...(but even that decoupled in the last hour as 114.000 capped the gains)...

 

As the crude correlation broke shortly after EU close...

 

This was not a short-squeeze per se - but as the day went on the "most shorted" names did start to suffer...

 

But we do note that once again the "weakest momentum" stocks notably outperformed (messing with quant funds again)

 

VIX broke to a 17 handle following trail of its tails...

 

Breaking back below its 200-day moving-average for the first time in 2016...

 

Lots of chatter today about liquidations of VRX positions (and the SPY market hedges with them) - driving VRX lower and the market higher... until we tweeted about it...

 

Treasury yields exploded higher on the weak data this morning

 

The USD Index slid back to unchanged on the week today after an early bounce on JPY weakness which was trujmped by EUR strength after Europe closed)...

 

Commodities were mixed today: PMs very modstly lower, copper and crude higher - bnut we note the broad based flush ast around 8ET...

 

And finally there was Nattie - which popped and dropped and popped on weather changes, hedge fund rumors, and force majeurs...

 

Charts: Bloomberg