Cliff-Off; Volcker-Off; Hilsenrath-On; Equities-On But Risk-Unch

Tyler Durden's picture

Equity indices bounced off re-coupled gold performance after Boehner's 'nothing'  led into European close pump which was supported by Obama's 'nothing' then pumped for one last stop-run over recent highs thanks to another 'nothing' from WSJ's Hilsenrath. Remarkable! A 2% rise off the day's lows moved us well above the recent Reid-top. Risk assets in general were far less exuberant as stocks really stepped up the decoupling after around 1300ET. AAPL ended red, bumped up against its closing VWAP and sold off every time; VIX traded from 17% highs to 15.5% at the close; and HYG plunged into the close to end the day unchanged (on huge volume). Today appeared very much a catch-up day for stocks to a number of asset-classes that were not sold hard yesterday - the recoupling is complete now.

 

S&P 500 futures hovered  at the highs and volume was heavy with no movement - smells like short-stops being gobbled up...


 

Stocks were all alone in exuberant-land this afternoon as stops were run above Reid's top and Thanksgiving..


 

And across broad risk assets (summarised by our indices below) - stocks simply pulled away from any kind of risk-on reality...

 

It looks like stocks (green) had dramatically oversold yesterday relative to credit - but the catch up today appears to have been met with high yield credit (red) weakness into the close on huge volume...

 

Tough to say where next but the 'catch-up' has certainly removed some arb ammunition to extend and the block size up at the tops (where the stops were) suggests we test back down before any extended run...

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: AAPL - selling pressure appearing again at the VWAPs...

 

Bonus Bonus Chart: S&P 500 futures have consistently stalled trends at around a 5% low-to-high-swings over 7 trading days... will this time be different?