QE Trade Continues As Bonds, Bullion, And High-Beta Stocks Bounce

So Venezuela is collapsing, Thailand is crumbling, and Ukraine is for all intent and purpose under martial law, US macro data is dreadful (and no, it's not all the frigging weather), and German consumer confidence dumped again; and US stocks soar (8th day in a row for Nasdaq for first time since July) on the back of a BoJ move that was fully expected (and entirely under-utlized) but sprung USDJPY back above 102. S&P futures volume was 35% below average as the day-session range was extremely small. The Russell 2000 almost reached unchanged for 2014. The un-taper, QE balls-to-the-wall trade continues it would appear – Gold (and even more so silver – longest win-streak in 46 years) continue to surge; Treasury yields continue to slide; the USD slips lower (led by EUR strength); and of course, high-beta equities jump higher (as stodgy big caps underperform). Unfortunately, the EM crisis is far from over – as EM FX tumbled today. VIX also rose notably, disconnecting from stocks; and credit markets are wider today than Friday's close.

While stocks made the headlines, the real news was made in commodity-land with silver and crude oil surging…

Quite a mixed day – KO dragging the Dow down, Trannies weak but high beta honeys soared…

The Nasdaq is following a very similar path to July – the last time it tested its 100DMA – up 7.8% in the last 8 days – the most since Dec 2011

Despite some early weakness, stocks recovered to track the flatness in USDJPY… but EM FX kept sliding… look at the narrowness of the trading range this afternoon

Treasuries rallied along with stocks but soon after Europe closed, bonds started to sell-off modestly… the sell-off Friday has been eradicated…

FX markets overall were quite volatile though we note the knee-jerk of the BoJ is starting to fade. USD slipped lower as EUR strength dragged it down…