'New-Normal' Equity Highs On Lowest Futures Volume Day In Seven Months

Tyler Durden's picture

S&P futures volume was the lowest (ex-holidays) since October today and the intraday range was in stocks was practically its lowest all year. However, that did nothing to hamper the inexorable rise of stocks - though today was different. FX carry markets (JPY-based) were not supportive (especially AUD) as the main theme of the equity markets today appeared to be rotation - from defensives to aggressives. Correlations across asset classes were quite high as Treasury yields continued to push higher post-NFP (30Y +15bps holding at 2.99% since then). The credit fade from Friday gave way as HY especially snapped tighter in spreads catching up to stocks. Draghi's comments snapped EUR lower which provided the USD strength (but AUD also helped with its weakness). Gold ended unchanged as oil prices tested up to multi-month highs (Brent Vigilantes) before fading back a little.

 

Sectorsd today had a clear message - out of 'defensives' and into 'aggressives'...

 

as the short-covering was very active once again...

 

with credit snapping back tighter after fading friday's move...

 

AUDJPY was not the generator of equity movement today (as Treasuries took over)...

 

Algos were in charge once Europe's quiet markets were closed today - which likely explains the drop to VWAP into the cash close...

 

Market breadth also fell away after Europe closed...

 

but perhaps the only thing that can slow this rise in stocks is the price of energy...

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: AAPL's 10-day rise is up there with some recent bounces - none of which ended well - and pefectly tapped the 100DMA today...