Bad News Is Great News Again; Stocks Have Best 2 Days In 4 Months

Bad News Is Great News Again; Stocks Have Best 2 Days In 4 Months

Following the 2nd dismal jobs print in a row, it would appear the market’s new “common knowledge” is that the Fed will be forced to un-taper – despite Hilsenrath’s “Fed stays the course” perspective. Everything is up today (apart from the USD). The disconnects from recent correlations were extreme as stocks lost the plot against FX carry, commodities, and bonds. The best 2 days in a row for stocks in 4 months sent most indices to critical technical levels and dragged all but Trannies and the Russell back into the green on the week. Oil prices surged back above $100. Bonds rallied (and bull steepened). Gold, silver, and copper all gained notably (with

Charts: Bloomberg

Bonus Bonus Chart: Equity markets decoupled from all other risk assets today. Perhaps the following chart of the intra-asset correlation between a basket of risk assets and US stocks sums up the loss of reality – correlation went negative…

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