The shorts are certainly getting a scare this morning as the BOJ hands out another $124Bn and that was more than enough to pop the Nikkei 5% in 90 minutes, with the /NKD Futures now testing 16,850 – almost catching up to the Dow for the 3rd time in 2 years.

"The recovery from the lows after Bullard spoke yesterday is another reminder how addicted markets still are to liquidity,” said Deutsche Bank strategist Jim Reid.

If what goes up, must come down – oil has a LONG way to fall.

Mutual fund managers allocate too much capital to low-quality stocks and Small Cap Blend ETFs hold poor quality stocks.

And wow, what complete and utter BS it is. The NYSE is still below 11,000 (our Must Hold line) and the Russell is still below it's 50 dma and we up on less than 10% of the volume (total) that sold off for the last two weeks. But, who cares as long as it paints a pretty picture?

August has been a spectacular month in which we ignored the most bad news ever ignored by a species that is still not extinct.