Stocks And Bonds Bid As AAPL Catches Down To Nasdaq

Tyler Durden's picture

From the start of 2012, AAPL was the beta-transforming game in town. Fund after fund claimed their stock-picking excellence when really, they were just running a higher beta fund being overweight AAPL. Today saw that come to an end (for now). AAPL and Nasdaq have recoupled (both +19.5% from 12/30/11) as the former fell to 11-month lows. One thing is clear, given strength in the indices today, everyone and their mom appeared to be in the long AAPL, short index trade isolating their performance. S&P 500 futures pushed inexorably higher all afternoon (even as bonds rallied, and the USD went bid on Juncker's verbal intervention) - testing unchanged on the week. From soon after this morning's POMO, US equities disconnected almost entirely from the rest of risk assets. Gold and Silver rose, Oil and copper slid, HY Credit snapped lower and recovered in the afternoon as the VIX term structure yawns ever wider across the debt-ceiling deadline, CHF was offered all day, and the short-term T-Bill curve is now inverted (stressed) across the debt-ceiling deadline.

 

S&P 500 futures ramped (on their own) up to unchanged on the week - only to fade back towards VWAP after the day-session close and into the futures close...

 

HYG (the high-yield bond ETF) snapped lower this afternoon but was rescued to keep thinsg aloft in stocks and while VIX limped to another lower close, VIX futures outperformed (lifting VXX off its lows into the close). Bonds ended the day in the green as did stocks...

 

But AAPL and NASDAQ recoupled from 12/30/11...

 

and across asset-classes, this morning 's POMO marked a total deterioration in correlation as US equities were bid and CONTEXT (our proxy for risk) remained flat...

 

JPY was bid overnight (as Amari commented) but CHF was offered (against the USD) all day (recovering its CHFJPY losses from last week). Juncker's 'dangerously high' EUR comments snagged EURUSD but algos were having none of it - they needed ES bid...

 

 

T-Bill curve inverted across the Debt-Ceiling Deadline...

 

and Credit markets remain decidedly unconvinced by this equity strength (*for now)...

 

 

Charts: Bloomberg And Capital Context

 

Bonus Chart: AAPL (more VWAP fades)...

 

Bonus Bonus Chart: Facebook (oops)...