New All-Time Highs In Stocks; Brent Vigilantes Awake
"Records being smashed left and right on Wall Street today" Better-than-expected 'mediocre' payrolls data was enough to drive pre-open S&P futures well over 1600, provide just the right sprinkling of short-covering scramble...
and euphoria to smash the Dow through 15,000 and the S&P through 1,600 and up to its long-term up-trend.
and that Trannies underperformance? not anymore....!
The algos were in charge once we gapped up and guided us gently back to VWAP close...
Treasuries snapped higher in yield, catching up to equity exuberance (after disagreeing all week).
The Brent Vigilantes are awake and paying attention with their biggest 2-day rise in nine months with WTI back above $96.
Copper also surged (+3.9% on the week) and Gold/Silver ended +0.5% on the week.
GLD continues to see holdings plunge but gold prices are resurgent
FX markets went wild around the NFP print - JPY crumbled (ending the week -1%) but EUR round-tripped from its initial dip; JPY-carry was very supportive of today's excitement (until late on).
Risk markets in general stayed highly correlated until some give back into the close that stocks ignored.(Capital Context's CONTEXT model was extremely correlated all the way through the chaos - suggesting the machines were in charge and it seems they were until Europe closed...)
Credit markets were not amused and faded the initial equity spike all day.
Spot VIX ended back under 13% with a drop of 0.75vols but front-month futures fell only 0.3vols to 14.25%
Charts: Bloomberg and Capital Context
Bonus Chart: Strange... What does Lumber know that stocks don't care about either... (h/t @st0cksniper)
Bonus Bonus Charts: 2 interesting gold charts... comparing COMEX open interest holdings and the Gold ETFs...
seems like reversion to normal now