Well, we've seen some ridiculous moves in markets before but today's cross asset-class malarkey takes the proverbial biscuit...
Or put another way...
Worst home sales data in 2 years, worst Servcies economy in 3 years, and an ongoing build in crude... and that happened.
Which left a lot of traders proclaiming...
Stocks V-shaped Recovery today... We note that Russell 200 (small caps) were the best performers and desk chatter was ongoing about the soaring cost of borrow for many small cap names.
The ignition for the idiocy was at 1115ET when The NY Fed cancelled POMO - that lifted everything for an hour - then when The NY Fed finally did its POMO at 1400ET USDJPY took over from crude to lift stocks...
As one witty trader remarked, today's rally is so furious, Oprah lost 10 pounds just watching it
As we note that Tom DeMark's level for trouble today was a close below 1917... And we noted The Dow soared 350 points off the lows
VIX was jammed lower multiple times today - especially at the close...
As an over-exuberant shorting of the shittiest stocks at the open seemed to spark panic squeeze during the day... up 4% off the opening lows...
Futures show the excitement best on the week...
Financials gapped lower then ripped but ended red...
But credit is still not buying it...
Treasury yields also V-shaped on the day as the POMO cancellation started the ramp and then a renewed POMO extended it...
Cable kept slumping (under 1.40) but the USD Index had another day of relative calm as commdoity currencies rallied this afternoon on oil's gains...
Commodities were where all the action was today...
Crude was idiotic... big build in inventories, drop in demand, and small drop in production...(which was all roundtripped by the market before it just exploded) - some claim this was related to China fiscal stimulus headlines...
Gold (and Silver) Roundtripped...
Charts: Bloomberg