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Biggest 2 Day Surge In History Saved As Epic 3pm 'VIXtermination' Ramp Undoes "Quant Omen" Tumble

No lesser Fed-questioner than Pedro da Costa provides the visual entertainment for today...

Market 'rebound' pic.twitter.com/ve8pIHyfwH

— Pedro da Costa (@pdacosta)

But then, with 30 mins to go....

 

While stocks is "wot reelly mattahs"... today's move in crude oil was simply epic...biggest single day surge since March 12th 2009 - this is a 6 sigma move based on the vol of the last 6 years (the equivalent of passing a man in the street who is 6'11" tall)

 

The Dow just went from its biggest 2-day point loss to the biggest 2-day point gain... this is not going to normalize quickly...and sure enough once JPMorgan unleashed their reality omen, and Plosser pointed the finger at GDP and a 'decent' economy, everything fell...only to be rescued in the last 30 mins by a VIXtermination

 

Quite a week... well over 7500 Points in the The Dow...

 

While the volatility comparisons are all tothe 2008/9 period, we noted another more accurate comparison... This surge looks like the August 2007 period when Geithner leaked the news of a 50bp discount rate cut and enabled the last hoorah for banks to unwind over-extended longs into retail greater fools...

 

And there is no volume in this bounce at all...

 

VIX remains in backwardation... but plunged today at the front-end...beforee ripping back higher after JPM/Plosser

 

After its biggest 2-day rise ever, today's retracement was of similar extreme size to other events over the last 10 years...before it broke higher

 

*  *  *

The day was very wild...

Starting with stocks, we contonued to ramp after China unleashed exuberant plunge protection into their close... a 5.3% bounce into the close!

 

And US equities kept running all day as business media cheerleaded mom-and-pop " did you miss your chance to buy low?" - until JPMorgan unleashed some facts and Fed's Plosser peed in the party punch... and then VIX was punched lower in a panic-buying last 30 mins...

 

So US Stocks LIFTED 2.3% in last 30 mins... in context China LIFTED its stock market 5% - so Ken Henry must do better.

 

Just look at the noise in VIX in the last 30 mins...

 

Thanks to the biggest 2-day short squeeze in 4 years...

 

Today's rip was driven by energy stocks which in turn were driven by total idicoy as above in Crude...

 

Because how manhy times has buying the dip in Energy stocks completely and utterly failed...

 

Thinking out loud on levels...

 

On the week, everything was awesome to start... but then the Quant Omen hit... but then again - there is always panic-selling driven by VIX collapse...

 

But we thought it notable that Small Caps and Nasdaq rolled over after touchingthe opening gap down levels fromlast Friday's tumble...

 

The Nasdaq managed to get green year-to-date, but everything else remains red...

 

Treasury yields rallied as stocks fell in the afternoon - closing around unch on the day...

 

The US Dollar strengthened once again on the day but faded post EU Close with USDJPY dropping after JPM dropped its reality bomb...

 

Commodities were where the real action was today...

 

With crude the standout craziness...

 

But copper and Silver also surged...

 

But But But... the clever chap on CNBC yesterday said "this proves investors confidence in the market is back"??

Charts: Bloomberg