from Zero Hedge
Volume was dismal – aside from a massive surge in S&P 500 e-mini volumes as the combo Bernanke bluff and ECB bond-band-rumor hit the tape and exploded stocks up from two-week lows. A late-day attempt to close the S&P green for the week failed and the Dow ended with its first down week in seven weeks – and largest loss in nine weeks – despite a magnificent centrally-planned triple-digit gain today (+100.1pts!) Stocks were ‘aided’ by new cycle highs in HYG as it saw its best performance in a month – amid massive fund inflows and heavy issuance (notably outperforming credit spreads in CDS land). The shift in HYG does look like some convergence trading with SPY though – after a month of flat-lining. Gold (and even more so Silver) were the week’s big performers (up 3.35% and 9.25% respectively) even as the USD only lost 1.1%. Treasuries ended the week better by 9 to 14bps (considerably different from stocks relative performance). The week was characterized simply as stocks bouncing between QE-off (Treasury strength) and QE-on (USD weakness and Gold strength) – on de minimus volumes.