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Dismal Data & FUBAR Fed Spark Stock-Buying-Panic; Banks, Biotechs & Black Gold Bounce

How many traders likely feel today...

 

Before we start, in case you were wondering why stocks exploded higher today...

 

And Gold extends winning streak to 5 days - best 5-day gain in 9 months

*  *  *

Stocks were lifted after hours overnight - helped by Jon Hilsenrath's apparent confirmation that there's no rate hikes in 2015 (as the market already knew) and dismal data this morning provided the "bad news is good news." That temporarily stalled when Dudley hinted that The Fed doesn't care what inflation is, it will hike - sending stocks lower... but that qucikly turned into a dip for panic-buyers to embrace with both hands and feet...

 

Quite a swing on the week (using Dow and S&P Futures as an illustration) as S&P Futs ran stops but Dow Futs couldn't quite make it...

 

Cash indices show the epic linearity of today's move... starting just after Europe closed...

 

Financials (best day in 6 weeks) and Healthcare surged in perfect harmony today...

 

With Financials spiking way more than credit...

 

As XLF ran up to test its 50DMA

 

And Healthcare's surge was all about biotechs...

 

FDC FAIL!

 

Which lifts Nasdaq, Dow, and S&P Green on the week (Trannies and Small Caps still red)...

 

Of course, VIX was crushed, turning on a dime at 12ET....(having led stocks the last 24 hours) - the swing in VXX (VIX ETF) shows this week's craziness best... This was VXX's biggest drop in a month and closed at new post-Black Monday lows...

 

AUDJPY was firmly in charge of stocks today (as USDJPY couldn't extend gains from overnight moves of Asian FX strength vs USD weakness)

 

The USD Index rose today (against the majors after weakness overnight)...with a big jerk higher on US dismal data...

 

Notice that while the USD strengthened against the majors it kept weakening against Asian/EM FX...as all the Carry trades get piled back into...

 

Egypt quietly devalued its currency... (for 3rd time this year)

 

Treasury yields bounced back higher - but nothing like stocks - up 4-5bps across the curve...note the pre-8ET ish dump happened again...

 

Entirely decoupled from stocks again...

 

But perhaps most notably, China 10Y yields have collapsed in the last few weeks (down 50bps outright and 43bps tighter than UST since 8/20 devaluation)

 

The China-UST spread is nearing 100bps - its lowest in 4 years...

 

Commodities were a mixed bag again today with modest strength in gold, silver, and copper while crude dumped on soaring inventories and then was whiplashed algo-ically back to the day's highs...

 

Here's today's idiocy in Crude...

 

Charts: Bloomberg

Bonsu Chart: "Data-Dependent" Fed...? ( h/t @NourHammoury )