Geithner's Farewell Present: Gold Slammed, S&P Over 1,500 On Best January In Stocks Since 1994

Tyler Durden's picture

A close above 1500, and the last time the S&P 500 managed 8 close-to-close gains in a row was November 2004 (with the 9th higher close marking the end of the run that time). The rise of the Dow Industrials is the best January since 1994 - which saw a rather painful 10% decline in Febuary. Today saw bonds monkey-hammered to catch up (yields) to equity's strength on the week. FX markets saw more JPY weakness (-1% on the week) as EUR strength from this morning's LTRO news followed on - dragging the USD down 0.3% on the week. Commodities were mixed with Oil unch on the week, Copper down (but global growth?), and Gold and Silver slammed on what looks like AAPL collateral calls. AAPL spent the day wiggling up to VWAP and getting dumped to new 52-week lows unable to get any bid and once again we saw VIX totally ignoring the equity exuberance. Builders outperformed (+3.2%), Tech underperformed (-0.4%), as trade-size and volume were relatively low. The close with AAPL smashing lower on huge volume and ES ripping to new highs confirms the pairs-trade unwind we have been banging on about.

Best January for the Dow in 19 years...but the follow-through was not so fun...

 

Leaving US equities the winner across broad asset-classes from the 12/28 pre-fiscal-cliff decision... USD and Gold practically unch and Silver just losing its winning spot...

 

AAPL was smashed into the close...

 

AAPL's last three minutes saw 2.2mm shares (and 133k contracts in ES) as the bulk of the trade was done at $439.90...

 

S&P 500 futures waivered around VWAP once again - as once again we see the trend from the US open to European close revert as POMO finished... and the late-day smash higher in ES is simply the antithesis of the AAPL sell-off as the dominance of the long-AAPL, short-ES pair is unwound en masse...

 

 

Perhaps a little clearer here...

 

VIX remains notably disconnected from stocks since before the AAPL earnings news...

 

Today's move in Treasuries was a total collapse catch-up (in yields) to equity strength on the week...

 

The JPY has lost 3.4% in 2 days against the USD - quite an impressive swing relatively. EUR rallied on bigger LTRO repayment this morning which given its weight dragged the USD lower and provided some early juice for risk assets...

 

Even though the USD only lost 0.3% on the week, Copper doubled that loss (as opposed to relatively strengthening) and Gold and Silver were slammed...

 

As a reminder - things are diverging!!!! US Macro just turned negative - its worst level in five months...

 

Charts: Bloomberg and Capital Context