European markets were ugly going in: Portugal's largest bank on the ropes and macro data weak. US earnings calls confirmed no Q2 bounce back and macro data piled on (along with various GDP downgrades). Equity markets opened gap down with a big flush of "most shorted" longs and Russell 2000 dipped into the red for 2014. Then the rally-monkey turned up, slamming VIX and lifting USDJPY to squeeze shorts and drag stocks "off the lows." Once shorts reache dunch, stocks limped lower "off the highs." Away from the v-shaped recovery in stocks, Gold broke above $1340 (4-month highs) and silver gained. Oil turned around early losses closing up for 1st time in 9 sessions ($103). The USD rose (on EUR weakness) but remains lower on the week. VIX ened 0.8 vols higher at 12.5 (well off its intraday highs though). The day ended with Carl Icahn warning that "it's time be cautious about US markets." VIX pushed higher into the close as investors remember Europe opens in 8 hours.
V-Shaped recovery… but still ugly from Payrolls…
Cash indices remain down on the week with Russell still the lagard
The short slam was ramped all the way back to unch…
As USDJPY was large and in charge bouncing off 101.00
VIX ramped higher out of the gate then fell back.. but pushed higher as everyone remembered EEurope opens in 8 hours…
Stocks remain in a land of their own as repo, growth, and EU bank strains weigh on FX and bond markets….
PMs ramped…as did oil
and Treasury yields dumped and pumped…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1qoQaDl Tyler Durden