A Few Quick Thoughts On Why Markets Around The World Are Surging

The yen is weakening.

Homebuilders are up 3%.

European financials are on fire.

What's going on?

Dave Lutz of Stifel, Nicolaus passes along some thoughts.

We summarize:

• Everything started earlier with Germany. There's a belief that Germany will "capitulate" and let the ECB pump more.
• Japanese investors are selling the yen and buying European assets.
• Homebuilders are strong.
• Hedge funders are heavy buyers. The "most short" basket is a big outperformer.
• More chatter about austerity abating.