Dow Hits New Record Intraday-High Ahead Of Fed & Scottish Uncertainty

Overnight weakness in Asia and Europe was shrugged off. The Dow hit all-time record highs (first since July) and the S&P broke back above 2,000 following headlines proclaiming a “stealth QE” from China (which actually hit the news during the Asia session) and chatter from WSJ’s Hilsenrath that The Fed will leave the words “considerable period” in the statement tomorrow. Early weakness in stocks was ripped 25 points higher in the S&P on the back of a 97% correlation to AUDJPY (China-driven), the USD dumped to unch for the week (worst day since May), commodities all took off higher (led by Copper and Oil), and Treasuries flip-flopped to end steeper (5Y -5bps, 30Y 1bp on the week). “Most Shorted” stocks squeezed higher. HY credit compressed with stocks rally but decoupled later in the day. The Nasdaq and Russell (nearing death-cross) remain red on the week despite today’s exuberance. VIX was smashed back under 13 (which makes perfect sense because there is no uncertainty this week at all). S&P closed below 2,000 and The Dow “off the highs”.

This post was published at Zero Hedge on 09/16/2014.

 

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