Miracle Panic-Buyer Lifts Stocks Green From 50DMA

Do you believe in miracles? With death-crosses crossing, Hindenburgs Omening, bonds and credit diverging, breadth deteriorating, stocks on the verge of the worst run of thge year, and the S&P 500 testing the crucial 50-day moving average… it should be no surprise that a combination of VIX-slamming, USDJPY-ramping, PBOC-firing, Fed-speaking sent stocks to their biggest gains in 7-weeks after the worst selling in 5 weeks (and people think the BoJ is the only one buying stocks). Treasury yields rose but nothing like the exuberance in stocks. HY credit markets deteriorated notably (bounced with stocks but notably less so). The USD surged (apparently on PBOC rumors) early (+0.3% on the week). Gold & Silver dropped, copper rose modestly but WTI oil prices exploded higher with stocks' exuberance (and Benghazi headlines). VIX was banged from over 15 to under 13.5. S&P 500 2,000 (1,999.79 achieved) and getting back to green post-FOMC was all that mattered today – and Mission Accomplished… before a slightly weak close.

 

Stocks tagged green from FOMC… see Fed was dovish… (On the day, Russell underperformed – but note once again the shift in trend at the EU Close…)

 

and The S&P 500 desparately wanted 2,000 (but failed 1999.79 highs)

 

Bouncing off its 50-DMA…

 

As VIX was monkey-hammered lower…

 

And USDJPY provided the target…

 

Home sales beat (idiotically) but builders were hindered from their usual high beta muppetry by KBH reality…

 

But high beta momo was the news today…

 

as "most shorted' were squeezed again…

 

HY credit was not buying it…

 

Treasurioes weren't really buying it either…

 

Treasury yields rose on the day (30Y unch on the week)

 

The USD surged around the US open then flatlined… (apparently on PBOC head ax news)

 

USD strength sent PMs lower. Copper gained on PBOC reform denial and Oil, well it just exploded when stocks did…

 

WTI outperformed Brent – spread back to almost $4

 

But gold was going crazy…

 

 

 

Charts: Bloomberg




via Zero Hedge http://ift.tt/1sqPZNg Tyler Durden

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