What's interesting is that government bonds have been selling off the past week. QE is all about monetizing government debt. Government bonds should be catching a bid, because it is they that are going to be purchased by the Fed, not stocks or bonds.
The QE playbook has been to buy bonds, stocks and gold while selling the dollar. A normal recovery playbook would be to buy stocks and the dollar and sell gold and bonds. Neither is happening. The only thing I can think of is that the market is now beginning to price in inflation, which is what would cause Tbonds to fall and everything else to rise. But corporate bonds should get hit too, and that's not happening.
The buying seems like a frenzied panic to the upside to me.
