S&P 500

There was some confusion why the S&P 500 just had to close in the green yesterday. The answer was simple: as we reported first thing yesterday morning just two days after "world renowned" CNBC contributor Dennis Gartman said he was "covering shorts" because he was "stunningly, shockingly, stupidly wrong" he flopped and was reducing his longs. Ergo, green close. It also meant that there was virtually unlimited upside before the market.

Those algos who scrambled to paint yesterday's closing tape with that last second VIX slam sending the S&P back over 2,000, forgot one thing - the same thing that China also ignored - central bankers can not print trade, something we have repeated since 2011.

Just when you thoughjt it was safe to chase the biggest short squeeze in history Fed vice-chair Fischer f##ked it all up...

The US equity market has only been more overbought 3 days in history...

With the S&P 500 trading back above 2,000, it appears The Fed needed to do something to tamp down the enthusiasm exhibited by this manic short squeeze. As Fed vice-chair unleashed the following: "We may be seeing the first stirrings of higher inflastion," the short-squeeze ended and everything reversed...

• *FISCHER: WE MAY BE SEEING `FIRST STIRRINGS' OF HIGHER INFLATION

Killing the short squeeze...

Sending gold higher and stocks and crude lower...

Shortly after JPMorgan's historically correct forecasters unleashed their "short stocks" prognostication, we joked that if only Goldman would go "long" the S&P500, then the confusion about what is really going on would be eliminated instantly. And so the alarm bells on this bounce should be ringing loud and clear as Goldman just told its portfolio manager clients that "S&P 500 calls are more attractive now than at any time on record."