Worst Week In 5 Months For Stocks

Tyler Durden's picture

Cash equity markets closed the day very marginally in the green - ending the worst week in over five months. S&P 500 futures are bleeding red after-hours as we note significant volume came in after the President began speaking - from which we closed down 1%. Cross-asset correlations were extremely high today as it seemed all about equities (and equities were all about AAPL). Credit markets (and volatility) were not enjoying the morning party as much as stocks but by the close equities reverted back down to reality. Gold remains the week's big winner (post-election) but we note that 10Y yields fell from over 1.75% into the election to under 1.60% at their lows today. The USD ended the week +0.6% and Treasury yields down 10-15bps. AAPL gained 1.75% (phew) but traded extremely technically with heavy volume around VWAP into the close which helped Tech slightly outperform Financials on the week (-2.5% vs -3.1%). A day of technical bounces and all eyes on stocks...

An ugly week for US equities...

 

with a clear winner - Gold... as it seems equity 'profits' are rotated into real assets and bonds...

 

The capital structure in general was not buying was stocks were selling today... the upper lefty chart shows that credit/volatility/rate (HYG/VXX/TLT) were deceidely less sanguine about things than stocks all day... Across the broad basket of risk assets that our CONTEXT model represents, everything was pegged to stocks all day - we have seldom seen cross-asset-class correlations (lower right) this high and suggests a market very much on edge...

 

And here is AAPL's fascinating day...ensuring it did not close the week below its 55-week average...

 

and where the S&P stands...bouncing off its 200DMA... holds at swing highs from July, bounced to Draghi's edge, then was sold in size...

 

Charts: Bloomberg and Capital Context