VIX Breaks Losing Streak As Everything Bought Except Apple

Tyler Durden's picture

VIX rose majestically (by a mere 0.25 vols and still below 14%) for the first time in seven days (but the term structure steepened a little more) and while stocks did not like that, they still managed to pull off the lows, close green, and remain in a 1% range for the last week. Treasury yields continue to slide lower (even with a weak auction today) as it would appear the end of the bond bull market was called a little premature (and as we noted, merely reflected short-term rate-locks for corporate issuance). While HLF grabbed headlines, it is AAPL that seems to be swept under the rug as it ends the day crashtastically at its lows (where its margins will be after the iPoor is released). The USD leaked ever so gently higher on the day - ending practically unchanged on the week (with JPY 0.5% stronger on the week). Commodities chopped around non-directionally (though Silver is the week's winner so far). Financials, and Energy had a tough day (and homebuilders were sold hard after Europe's close). HYG seemed today's lever of rampaciousness and remains rich to intrinsics (as cash HY bonds just can't catch a bid at record-high prices). Once again the S&P reversed its (up)trend at around the European close but late-day VWAP reversion held us bid on the day.

Alcoa closed the day in the red as the apparent catalyst for the rally (China strength? or whatever magic was derived from the CEOs banter) faded...

 

S&P 500 futures closed perfectly at their VWAP as the well-controled market remains very narrowly rangebound...

 

but Treasuries have only gone one way since the initial spurt...

 

as the initial asset allocation shifts fade and assets recouple a little more...

 

The correlation between risk-assets and equities did however drop notably this afternoon (right) but as the afternoon wore on so stocks caught down to Treasury and USD reality. ETFs remain very well anchored by the algos (left) but HYG was the main lever to try and ramp us today...

 

HYG and SPY have recoupled (as VIX and stocks have also)...

 

The US Open to EU Close to US Close pattern continues... Financials and Builders...

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: AAPL...oops

 

Bonus Bonus Chart: HLF...oopser...