5 Reason Stocks Gave Back Their Big Gains

EOD

Stocks started the day higher following the CPI, as the VIX and the dollar collapsed. This sent the S&P 500 up by more than 1.3% in the first 45 minutes of trading, but it was not to last. Instead, it was all given back by day's end, and the index finished higher by a mere three bps. 

There are many moving parts at work in this market at this point. First, Goldman noted today that CTA are sellers of the index in all scenarios. Second, the short-vol dispersion trade seems to be falling apart as the 1-month implied correlation basket continues to move higher.