Stocks Pop And Credit Markets Drop As Hindenburg Omen Re-Appears

Tyler Durden's picture

The cluster of Omens is starting to build - now 3 in the last 7 trading days. This cluster is now the most frequent since the 2007 highs - more 'clustery' than the 2010 signals. Volume today was dismal - among the lowest of the year in both futures and cash. Equity markets were bid out of the gate on the back of Japanese exuberance - and JPY carry - which oddly hadn't helped European risk markets. Credit markets, which decoupled from equity's reality around lunchtime Friday - were on a one-way street wider today - entirely ignoring equity's efforts at exuberance. The USD saw earlier (JPY weakness-driven) gains entirely unwound by the close and ended unchanged but gold (small gain) and silver (+1.1%) outperformed as WTI limped modestly lower. Treasuries added 3-4bps in yield (up around 16bps from Friday's low yields). VIX also didn't play along with equity's general lack of direction and rose 0.5 vols to 15.5%. Homebuilders are underperforming once again but financials remain the best performers off Friday's lows (for now). Nikkei futures did nothing all day - hovering at last week's dead-cat-bounce highs.

 

Today was the lowest NYSE volume of the year (and practically the lowest in S&P futures also)...

 

But we have now seen the 4th Omen in last 5 weeks and 3rd in last 7 days... quite a cluster...

 

not seen since the highs in 2007...

 

Credit markets were entirely unimpressed with the rally in stocks...

 

Homebuilders squeeze from last Thursday's lows has ben notably undone but today was flatline in most other sectors...

 

and while financial stocks outperform (above), financial credit markets are not amused...

 

But once again FX markets were very active...

 

but gold and silver saw gains despite the USD ending unch... as oil and copper fell on china data...

 

and it looks like the Nikkei is rolling over at the bounce from last week...

 

Charts: Bloomberg and Captal Context

Bonus Chart: AAPL's algo-driven dumpfest - triggered off the 'radio' news (that was well known) algos ramped to VWAP to enable the big boys to dump (volume)...

 

Bonus Bonus Chart: LULU gets pants'd... as CEO steps down... now holding at its 50DMA