Stocks Up, Bonds Up, USD Up, Gold Up; Oil Plungapalooza

Tyler Durden's picture

It wouldn't be the new normal markets if something freaky did not happen. WTI crude was crushed lower (back under $88) and now down almost 10% from pre-QEternity on supply build (totally ignoring the Iran and Syria-Turkey SNAFUs). HPQ stunned investors back to reality and fell 13% to nine-year lows. AAPL did it again - same 310ET time, same velocity of liftathon - which dragged indices up off what could have been a red close. Equities entirely disengaged from risk-assets soon after the US equity open this morning and never looked back as Treasury yields pushed higher into the open and slid lower all day, the USD rose quietly all day long, and gold drifted sideways to modestly higher on the day. VIX limped lower on the day but on the week stocks are up around 1%, Treasury yields down 1-2bps, USD unchanged, and gold/silver marginally higher (with WTI -4.6%). Healthcare and Financials are up around 1.75% on the week with Materials and Energy down 0.6%. Gold and Stocks are recoupled.

 

Summing up today's equity action - risk assets just weren't buying the hype at all... and as stocks started to drift into the final hour, so AAPL came to the rescue once again...

 

AAPL seems entirely Algo-driven now - just look at the ramps, supports, and resistance levels (click chart for large version) - all VWAP-related levels... After spending all day between today's VWAP and Monday's closing VWAP (red oval) - we ramped into the close to enable some large orders out near September's closing VWAP (cyan line)...

 

But Oil was the real story of the day...now down 9.6% from pre-QEternity...

 

and WTI notably underperformed Brent...

 

Is Oil 'rebalancing' to the low-end of the demand-peg against Gold?

 

Stocks and Gold recoupled once again into the close - as Treasuries remain 'flaccid' on the week...

 

On the week - HY spreads, HYG, and equities are back in sync at today's close - but the bid for IG credit seems a little less than aggressive risk positioning...

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: LOCK - the new IPO - ended the day -5.67% at the lows of the day - another great wealth transfer completed...

 

Bonus Bonus Chart: AAPL Seasonals - lots was made of the +10% average performance of AAPL in October... not much was made of the -9% average November performance that follows!!!!