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NASDAQ Drops Most In 5 Months As Leaders Languish

Tyler Durden's picture




 

AAPL slumbered today (fading at VWAPs) and GOOG stumbled on FTC settlement chatter - dragging Nasdaq to its biggest weekly loss in almost 5 months. Financials were also sold hard (following what every talking head said was 'good' earnings by JPM and WFC this morning) - leaving the sector down 3.7% from post-QEternity highs with previous darling WFC slapped down to BofA/MS levels post-QE -6.5%. Dow Transports outperformed its peers on the week (ending very slightly red) but this remains more a pairs-trade story than anything to hang a 'recovery' on. The S&P has auctioned back to the top of the post-Draghi spike - battle is commencing. Treasury yields legged down once again (long-bond down 18bps on the week at lows) but pulled off the lows after Europe closed -5bps to -14bps as the curve flattened. The USD limped lower for the last few days but ended the week +0.45%. While Oil managed a 2% rise on the week, we saw commodities getting sold today with Gold/Silver sliding (-1.44% and 2.9% respectively on the week). After an early spike down, VIX leaked back higher all day ending at the magical 16% level - up 1.5vols on the week.

 

YTD - Gold and Silver still leading followed by US equities with the Long-Bond closing in at +3.3%...


 

Dow Transports outperformed as the NASDAQ slumped...

 

by the most in almost 5 months...

 

as the leading sectors of the QE-hope-rally become the laggards very quickly...

 

and financials are falling hard now...

 

Despite weakness in the USD today, it ended the week up 0.5% with AUD and JPY strength offset by relative weakness in EUR...

 

But Commodities slid today - even as USD slid...

 

Risk-assets were highly correlated once again today

 

The S&P 500 futures closed 1 pt above their 50DMA at a one-month low - closing pretty much at its lows. But has a little way to go to catch up to credit's view of the world...

 

Charts: Bloomberg and Capital Context

 

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Fri, 10/12/2012 - 16:23 | 2882863 slaughterer
slaughterer's picture

Weekend and next week bring alot of Chinese data .    I am switching to the Shanghai Composite for trading.  The ES is just too dismal. 

Fri, 10/12/2012 - 16:32 | 2882901 B-rock
B-rock's picture

I have ES closing below its daily 50MA... (TOS)

Fri, 10/12/2012 - 16:27 | 2882880 SheepDog-One
SheepDog-One's picture

All possible good news has already been released. Everyone for themselves from here on out.

Fri, 10/12/2012 - 16:40 | 2882937 Blasé Faire
Blasé Faire's picture

Isn't that more or less always the case?

Fri, 10/12/2012 - 17:19 | 2883076 Conman
Conman's picture

China easing news creeps in every 2 days or so. That and Spain bailout. Theres alwys the prepiosterious QE4inity hopes as well.

Fri, 10/12/2012 - 16:44 | 2882958 slaughterer
slaughterer's picture

HYG and SPY will meet in the middle at SPY 140.  This is the lowest band of the trend channel and last support before the whole rally breaks down.  

Fri, 10/12/2012 - 17:18 | 2883070 Conman
Conman's picture

Was out of hte office today enjoying nice fall day. Did they trot out that Penis ,I mean Dick , Bove to hug Dimon's nuts ?

Fri, 10/12/2012 - 17:28 | 2883103 Lost Wages
Lost Wages's picture

Yo, dawg. U need 2 buy dat dip.

Fri, 10/12/2012 - 19:32 | 2883271 TWSceptic
TWSceptic's picture

BTFD!

 

I don't know why anyone would be surprised by this. It's a classic buy the rumor sell the fact. Expect more consolidation or correction. PM are obviously not allowed to go any higher than current range until after the election, even though they clearly wanted to...

Fri, 10/12/2012 - 18:24 | 2883257 q99x2
q99x2's picture

It is a crooked market that is run by crooks get rid of it. Run it out of the country along with the crooked banksters and politicians. Fuck you Queenie.

Fri, 10/12/2012 - 22:19 | 2883821 venturen
venturen's picture

Time for risk off Flash Crash to re- prime the pump and wipe out the sheepl

Sat, 10/13/2012 - 14:25 | 2885322 DowTheorist
DowTheorist's picture

According to the Dow Theory, we are officially in a secondary reaction since Oct 10.

The investor should be aware that ca. 70% of primary bull markets end up with profits. Hence, the odds favor the continuation of the primary bullish trend, not its turning into a primary bear market. In other words, the odds favor the end of this secondary reaction even though short term, we can see more weakness.

More about the implications of this secondary reaction and how it is good for those already "in" (it will help to raise the stop-loss) and for those latecomers still on the sidelines (providing them a chance to enter the market with a good risk reward ratio), here:

http://bit.ly/Qf6CFF

and here:

http://bit.ly/R4p0AV

 

 

Do NOT follow this link or you will be banned from the site!