Volatility Hammered As Stocks And Bond Yields Close At Highs

Tyler Durden's picture

For anyone watching the last hour or two of today's market, there was plenty to entertain. VXX (the implied vol ETF) collapsed in a haze of glory dragging stocks to the highs of the day with financials seeing their best day in three months. Treasury yields, Gold, and Stocks have all recoupled from the election and perhaps that is what this bond weakness is related to (as for example LQD fell to 3 month lows today, while HYG remains close to record highs). Stocks closed at Thursday's highs amid heavy and large size trades - the vertical rampathon (or inverse Baumgartnering) suggests a quiet market desparate to auction to stops. The USD ended unch, as did Gold while 30Y added 8bps as testicular fortitude appeared under pressure today. Perhaps Citi should downgrade AAPL every day? Today's #Teppergasm (h/t @gubbmintcheese) saw the NASDAQ back to unchanged for December and Citi up a measly 13.3%.

The S&P 500 futures were relatively entertaining today - kissing VWAP twice before accelerating 10 points in the afternoon to close at the highs...

and what that rampalicious liftathon looked like up close and personal - two words - Linear Awesomeness...

 

which leaves S&P futures at a key crossroads...

 

For the month of December, today's ripfest dragged the NASDAQ back to unch as Trannies lead...

 

Stocks, Bonds, and Gold all recoupled post-election...

 

Today was crazy in the afternoon - after being well correlated early, volatility was crushed and managed to drag stocks (and High Yield) higher into the close...

 

Financials had their best day in three months - in celebration of Dick Bove's resignation we assume...

 

Charts: Bloomberg

 

Bonus Chart: Financials In December... Citi +13.3%... awesome...

 

Bonus Bonus Chart: HYG vs Fair-Value divergence - seen that before last week, didn't end well...