Deja Deja Deja Vu - Final Hour Ramp Closes Stocks At All Time Highs

Tyler Durden's picture

Despite (or in fact 'due to' in this alice-through-the-looking-glass market) terrible data overnight in Europe and weak data this morning in the US, equities went from strength to strength thanks to a pre-European POMO vertical liftathon that pulled equities 1% higher on nothing (nothing at all). This faded but was helped into the close by a JPY-driven spurt to hold above 1650 in the S&P 500 at another all-time high (intraday) and close. Behind the scenes it was a mess though. Treasuries rallied (after recoupling with stocks) and did not play in the final hour frolicking. VIX ended the day higher (and notably divergent). High-yield credit closed weaker and credit markets are significantly divergent now as releveraging begins to bite. The USD pushed on to new highs intraday (highest since July 2010) which we are sure will help earnings. While the market has done its best to pressure the oil markets lower, today saw WTI gush higher back over $94 once again. The big story is in gold and silver which were jerked lower at around the US open (ending the day down 3.8% and 5.6% respectively on the week). As a reminder for those calling for the death of gold - AAPL is down over 8% in the last 3 days (the death of AAPL?).


The trend is your friend (even if it is not a trend but a correction because you buy it until it becomes the trend again....)

 

The shorts were squeezed out from the open to the European close and then gathered some steam back into the close...

 

Credit remains entirely unimpressed...

 

and VIX remains obstinate..

 

Treasuries and stocks recoupled early on after stocks lagging the break but the last hour saw bonds ignore stocks exuberance...

 

Gold and Silver were slammed at the US open, bounced, then drifted to close at their lows... WTI ripped back...

 

Cross asset class correlations are as broken as we can remember - it seems no matter what the money flow hits stocks and the rest of risk just plays catch up for now... (until of course it doesn't)...

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: The Death of AAPL... (strangely correlated price action too...)

 

and from the all-time highs...

 

and the updated MSFT vs AAPL mania chart...