"The Market Traded As If It Had Been Delivered QE"

Last week, when looking at the market's remarkable reversal as a result of the "dramatic shift in positioning", we said that it was reminiscent of the QE trade as "HFs were getting smoked" as the "most shorted names blow up in their face now that we have an epic dash for trash."

Well, it appears that at least one Goldman trader agreed with us because this morning Goldman's Rich Privorotsky echoed precisely what we said, writing in his GS Basics note that "if you look at cross asset price action the market traded as if it had been delivered QE with bonds up/eq up, credit tighter/bonds up, Cyc/def up/bonds up and vol down/bonds up."