from Zero Hedge:
What can we say? From the better than expected GDP this morning Gold and the USD (and Treasury yields) diverged from the QE hope trade – but stocks didn’t. Then came the statement of the entirely sublime obvious from someone somewhere about Draghi’s normal pre-meeting meetings and we were off to the races to test recent highs. Treasuries exploded higher in yield, Gold popped, USD weakened (as EUR popped), and stocks ripped. But…Treasuries reverted back to pre-Draghi-levels, EUR tumbled and the USD ended near the highs of the day, Gold gave back most of its spike gains and closed in the middle of its day’s range as stocks just wouldn’t give up the dream. For a 2% rally in S&P 500 e-mini futures, VIX fell only modestly by 0.9 vos to 16.7% – which is above last week’s close (while stocks end almost 2% above last week’s close). Amid the heaviest volume in over a month and the largest average trade size in over a week, ES closed at almost 3-month highs. It appears to us that unless Draghi and Bernanke – who now seem engrossed deep in the inter-continental thermonuclear currency war – both do their bit next week (which the market has now more than fully priced in given the dismal fundamentals) then this is becoming farcical but as Maria B said “a rally is a rally, right?” Ask the ZNGA and FB buyers of the rally on IPO day. Stocks ended the day notably decoupled from risk-assets amid Treasuries worst day in 9 months.