Another Day, Another Equity Divergence

Tyler Durden's picture

It would seem that the only 'asset' that finds the weak macro data this morning and deterioration in European sovereigns as a signal for risk-on is US Equities. While early on VIX gapped higher, it has recoupled in a compress-a-thon dragging stocks to the highs of the day as the USD drifts sideways and Treasuries are bid. Whether equity index strength is the long-AAPL hedgers unwinding (as AAPL is down 2% from its opening levels and sub-$500 once again), we can only stare in amusement at the low-volume liftathon that is exciting all around (especially the energy sector as oil hits 4-month highs).

Cross-asset divergence...

 

and across the ETFs... VIX is holding it all up..

 

Aggregating the risk-assets (right) and ETFs (left) we see stocks in a world of their own since right before the European close...

Another low-volume stop-run? or this time it's different...

Charts: Bloomberg and Capital Context