Whoever orchestrated the last two hour closing ramp sure has a satanic sense of humor, opting to close the S&P at 1666 or exactly 1000 points above the “generational” low. A late-day desperation to buy-buy-buy, triggered by an avalanche of stops being triggered in the DAX futures market (as it broke all time highs), sent stocks soaring. Treasuries had been weak all day (giving back yesterday’s gains and more). The equity spurt was not accompanied by VIX or Credit or Oil or Copper but JPY’s break of 103 was another trigger supporting the rise. But that doesn’t matter. The release of weak IP and in-line CPI data on Wednesday seemed to trigger the ‘change’ as gold and silver diverged lower from copper and oil’s surge, Treasuries rallied, and stocks and the USD surged thereafter. WTI crude ends the week unchanged (against a USD gain of 1.37%) with PMs down 6-7%. Volume was light today but that doesn’t matter either.
It’s been quite a ride…
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