Stocks Up, Bonds Up, USDollar Up, Gold Up, Oil Up Ahead Of Draghi's Possible Let-Down

An utter VIXnado (below 12.25 in the last 30 mins) sparked a late-day buying panic in stocks ahead of tomorrow's all-hopeful ECB meeting (because nothing makes more sense than lifting all protection ahead of a potentially massive market event) although the last few minutes closed weak. On the day high beta Trannies (despite higher oil) and Small Caps surged once again (as the market ignored PMI and ADP and loved ISM) as Monday's ‘excessive' selling of “most shorted” names has been face-ripped back the last 2 days. Treasury yields at the long-end fell backdollar rose once again as EUR dropped to 1.2301 (-17 handles from Draghi's first hint). Despite USD strength, gold (over $1210) and oil (over $67) pushed higher but silver and copper slipped. In summary, buy back all your hedges, buy stocks, buy bonds, buy dollars, buy gold, buy oil, bye bye sanity.

“Most Shorted” stocks have been squeeze at both opens today and yesterday…

We hope everyone enjoyed today's efficient market algo freakiness around munchtime….

As VIX was monkey-hammered lower today… (because nothing makes more sense than lifting all protection ahead of a potentially massive market event) but could not sustain it into the close

Which pushed stocks to record-er highs (for Dow and S&P) with s weak close

and Trannies and Small Caps higher on the week

Treasury yields fell today (bonds were bought)

As The Dollar surged once again (on EUR weakness ahead of tomorrow)

EURUSD down 17 handles since Draghi hinted at QE… at 1.2301

Despite USD Strength, oil and gold gained on the day (silver and copper did not) but since OPEC's initial leak, oil is down around 12% and Gold up around 1%