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Draghi's Dike Defended As Market Ends Week Range-Bound

Tyler Durden's picture




 

As we noted this morning, today seemed more about defense than offense (even though stocks managed to rally off Draghi's Dike twice). Dow 13,000 and S&P 1400 remain safe. Today's theme is 'V-shaped-recoveries' as AMZN managed some magic last night, AAPL managed some super-magic intraday - bouncing off its 200DMA and then fading into VWAP to close on volume, and S&P futures oscillating between post-Tuesday highs and lows all day (with the ubiquitous dump to VWAP into the close after the 3pm ramp on cue).  

 

 

Dow was weakest -1.7% on the week as Nasdaq managed to riggle back up today to a 0.6% loss on the week. The USD gained 0.5% on the week, perfectly matching the 0.5% loss in Gold. Silver ended the week unchanged and Oil -4.8%. Treasuries recovered their losses from yesterday to end the week mixed (5Y +1bps, 30Y -3bps) and VIX leaked back under 18% by the end of the week as realized vol has increased (and protection was lifted). Equity markets were very much on their own in the land of happy ponies and cuddly unicorns today with risk-assets in general bleeding lower into the close. Sunday is sure gonna be fun...

Some significant intraday vol this week but Tuesday's big plunge (GOOG) was the major event and the rest was oscillation at Draghi's Dike lows...

 

leaving the S&P at the lows after 3 decent pushes lower...note we sqw volume and size-blocks come in at the highs into the close as the stop-run worked and enabled a few more out...

 

Credit markets were mixed - HY bonds (green) underperformed this afternoon; IG spreads (dark red) outperformed and HY spreads (red) and stocks (blue) reracked together

 

AAPL's round the world trip - twice - ending with a voluminous plng eback down to VWAP after selling into yesterday's VWAP... the bounce at the lows was within a pt or so of the 200DMA...

 

Commodities in general lost ground on the week (Silver unch) but Gold matched the USD's implied-loss of value and both PMs rallied for the last two days (admittedly with some lumpiness)...

 

and perhaps the most-telling charts are of equity performance relative to its capital structure (Vol/Rates/Credit ) on the left and broad-risk-assets (CONTEXT) on the right - which were both signaling far less confidence into the weekend...

Go Giants!

Charts: Bloomberg and Capital Context

 

Bonus Chart: AAPL Longer-Term: Highest volume in 6 months and bounced off 200DMA...


 

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Fri, 10/26/2012 - 16:25 | 2922601 malikai
malikai's picture

Here's what it looked like over here (bonds/forex/equities/commodities):

http://blog.quantsig.net/2012/10/26/friday-close/

Fri, 10/26/2012 - 16:34 | 2922617 The Wizard of Oz
The Wizard of Oz's picture

BULLISH FJORDS!

Fri, 10/26/2012 - 16:39 | 2922630 withnmeans
withnmeans's picture

Mr. Henry changed his underwear, and is now headed to the bar. 

Bartender, Scotch please, 4 fingers, hmm, make that a double....

Of course it took a lot of fiat, but what do I care, I made it go GREEN!!!! 

Fri, 10/26/2012 - 17:00 | 2922691 GetSome
GetSome's picture

Are the Tylers closet Giants fans?

Fri, 10/26/2012 - 16:28 | 2922606 Lost Wages
Lost Wages's picture

Draghi's Dyke: A skid row lesbian who is willing to give men fellatio for heroin.

Fri, 10/26/2012 - 16:43 | 2922638 GMadScientist
GMadScientist's picture

I thought lesbians were women.

Them's some big feets.

Fri, 10/26/2012 - 16:33 | 2922612 slaughterer
slaughterer's picture

NFLX + AMZN pair trade. LOL.  Slaughterer thanks Kev' n' Chuck for the elevation of these two most hopeless POS stocks.  We feel you heard our call out to you, Kev'  Keep it real Rutgers style boy.  Oh, and a call out to da boyz at DE Shaw--you don't leave us hanging.  

Fri, 10/26/2012 - 16:38 | 2922626 adr
adr's picture

At least Netflix had the benefit of a bullshit rumor of a Microsoft buyout. What was there a floated rumor of Apple buying Amazon?

Fri, 10/26/2012 - 16:46 | 2922644 Atlasshruggedme
Atlasshruggedme's picture

I would not pick Amazon... losing money on Living Social. Box stores have begun to price match online stores. One of these days online sales will be taxed. Scary... 

I like new IPO's (Not failbook) http://www.dailypolitical.com/finance/stock-market/proto-labs-pt-raised-to-40-00-prlb.htm

http://www.streetinsider.com/Special+Reports/Unusual+11+Mid-Day+Movers+1025%3A+(PSSI)+(ANGI)+(CHTP)+Higher%3B+(SPR)+(BBW)+(DEXO)+Lower/7818989.html

 

Fri, 10/26/2012 - 16:41 | 2922632 HaroldWang
HaroldWang's picture

At this point, I don't even know how to calculate AMZN's p/e. It's like dot com forever for these guys. Conference call was nothing but, and I will quote Cramer, "Just shut up and buy our stock."

Looks like they're listening!

Fri, 10/26/2012 - 16:33 | 2922615 asteroids
asteroids's picture

It's just a matter of time kids, just a matter of time. Debt never sleeps, it's always hungy and won't go away. Todays HFT circus of 15 handle swing on the SPY will one day end.

Fri, 10/26/2012 - 16:36 | 2922622 adr
adr's picture

As if we needed anymore proof of a manipulated market.

Today should be proof to even the most die hard CNBC pundits. If they still believe in the market after Amazon shooting up 7% today and what 20% from the after hours bottom, $205 to $238 absolute insanity, they should be put on an iceberg and floated away.

Fri, 10/26/2012 - 16:37 | 2922625 slaughterer
slaughterer's picture

AMZN is the coolest non-profit organization in the world.  Obamanation buy all their ObamaPads from Jeffy B. 

Fri, 10/26/2012 - 16:41 | 2922634 a growing concern
a growing concern's picture

I thought central bankers all liked the cock...

Fri, 10/26/2012 - 16:56 | 2922676 soopy
soopy's picture

"Tuesday's big plunge (GOOG) was the major event": GOOG was up on Tuesday...

Fri, 10/26/2012 - 16:57 | 2922680 Stock Tips Inve...
Stock Tips Investment's picture

The market still shows no real signs of life. Today was recovered from a bad start, but not the strength. Most of the technical indicators show significant deterioration. Some point to an oversold condition, but it appears that one may drop a little more. In these conditions, it is very important to see what happens with the SP-500. In the past, when the index fell below the SMA-10 on a monthly time frame (SMAM-10), there was a major correction. Today, the SP-500 closed at 1.412 points, while the SMAM-10 was located at 1.380 points. That is just between us just 2.3% of a very dangerous area. Most likely, during the next week, be confronted these two levels.

Fri, 10/26/2012 - 17:46 | 2922772 Awakened Sheeple
Awakened Sheeple's picture

The VIX held up well today. I expected it to crash HARD into the close to under the 200dma. Hmm..

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