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What Rout? Stocks Have Best Day In A Year

Since 13 minutes after the US equity market opened, the NYSE was broken for 150 symbols from AAPL to XIV (inverse VIX). KO, MCD, & IBM all fell notably on earnings. Credit, Treasuries, and JPY carry all traded 'risk-off'. But none of that mattered...broken markets and ECB rumors were all that was needed - Nasdaq soared by most in 2014 today, extending its 3-day swing to the best since Dec 2011. Despite USDollar strength (driven by EUR weakness), commodities all rallied with Copper and oil best (WTI >$83 again) but volatility in crude was significant. Treasury yields were mixed (flat to 5Y, +2-3bps 10Y & 30Y). VIX was smashed briefly to a 15 handle (down over 50% from its peak last week). Trannies are up almost 8% from Bullard's "QE4" comment last week... normal? Volume was dismally below average.

 

Nasdaq's best day in 2014, best 3-day swing in almost 3 years...

 

Most shorted stocks rose 2.4% - the biggest day in 7 months!

 

 

Only 2 things mattered today... ECB rumors and a Broken NYSE...

 

As cash indices exploded today - Dow up 207 (despite -65 points from IBM, KO, and MCD) - Trannies up over 3%

 

VIX was smashed lower (to a 15 handle briefly)...

 

Led by a surge in XIV (inverse VIX ETF) after NYSE broke - and WTF was that huge volume spike?!

 

As all the major indices explode off the Bullard QE4 comments...

 

The long bond and credit were not buying the plan...

 

Nor was JPY carry...

 

Treasuries did sell off intrday but steepened just 2-3bps on the day

 

As the USDollar surged on EUR weakness after rumors of ECB corporate bond buying hit... leaving the USD unchanged from Friday

 

Despite the USD strength, commodities gained ground - with an earkly spike in gold and silver faded as oil and copper rose...

 

Notably Copper is best post China GDP 'beat' and Gold almost roundtripped...

 

Charts: Bloomberg

Bonus Chart: The McClellan Oscillator (tracks internal breadth changes) has reached its highest since Sept 2013 (and signaled excess buying then)...