3:20 pm ET: News of further global central bank easing (this time from China) put the kibosh on yesterday's risk-off trade. The risk-on trade is back in full swing as stocks make a nice advance helped in part by fund-managers doing some end-of-month window dressing. This is likely one of the motivations behind Apple's (NASDAQ:AAPL) big advance today.
Considering this mornings big rally it's not surprising to see some profit-taking an hour before the close. While the VIX did make a monster move back to the downside, it still has more room to move to fuel further upside movement.
The major action today was directed towards people exiting short etf/etn positions and moving into selected long and leveraged long funds: silver (NASDAQ:USLV), gold miners (NYSEARCA:NUGT), and especially natural gas (GASL, BOIL, UGAZ). In the country fund space, the Israel etf (NYSEARCA:EIS) broke $40 resistance and is looking to retest its previous high of $44 (barring a confrontation with Iran).
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