This page has been archived and commenting is disabled.
Early Exuberance Fades As Stocks Slip And Bond Yields Dip
We appeared to go from good is good (but the underlying macro data this morning also provided some bad is good news) to good is bad by the close. The Discretionary sector almost reached back to unchanged from the FOMC statement but that appeared to be the short-term-top as it faded back by the close. Interestingly with bonds rallying notably from overnight high yields, bond-like stocks actually suffered today (great un-rotation?). Credit markets were entirely unimpressed by the early excitement in stocks and as we entered the last hour stocks began to sink and credit rally for the divergence. Gold and Silver diverged this afternoon with the yellow metal holding gains and coupling with WTI for a 1.5% gain on the day (and gold's best 2 days in over 4 years) while Silver slipped this afternoon to end -0.3%. The USD slow-leaked all day (-0.2%) amid AUD strength and modest JPY weakness (that provided some support for risk-assets early on). Volume was awful - around 30% below average. VIX fell on the day but rose notably more than stocks would imply into the close as hedgers grabbed on but stocks were sold as the Egyptian situation escalated.
The discretionary sector almost made it back to unchanged from FOMC - and note how Utes were sold heavily (even as bonds have rallied in the last 2 days)...
Across the indices, AAPL's 3.6% gain today provided the outperformance juice for NASDAQ but they remain down 1.5-20.% from the FOMC...
The S&P 500 stalled at its 50DMA once again as volume fell and the last 5 days has been the best of the year...
Credit wasn't buying it and into the close we saw pairs trading to bring them closer into line...
Treasuries rallied off overnight Asia session spike high yields... with 2.50% seemingly the tractor beam for 10Y for now
Gold and silver diverged as Copper was well bid (because China didn't explode last night?) and WTI pushed on above $98 and narrowed the Brent-WTI to $5 for the first time in months...
Charts: Bloomberg and Capital Context
Bonus Chart: It appears the complacency among the gold market participants that the precious metal is going to keep falling has never been higher (based on options-implied skewness)...
Bonus Bonus Chart: Don't be too excited about the recent drop in retail gas prices...
»
- 9264 reads
- Printer-friendly version
- Send to friend
- advertisements -
Close the gap? D-I-S-T-R-I-B-U-T-I-O-N.
Utes!
http://www.youtube.com/watch?v=eNZ1O2KTOOg
Acronym Acrobatics
Today’s featured acronym: VWAP (“VEEE-whaaPP”)
Vacillating Without A Purpose
Volleyball, With Arbitrageurs Playing
Vacuuming Web-traders’ Abundant Pennies
Vend When Approaching Price
Vortex Where Assholes Proliferate
Verifies We’re All Pawns
Vomiting When Algos Profit
(algo response): Victims Whine, Algos Profit (rebuttal): Vomit Will Arrive Presently
Volume-less Waves Are Predictable
Voluminous Wealth Affects Prices
Volcker’s War Against Prop-trading
Vikram Was A Punk
Vikram Waylaid Any Profitability
Vikram, We’re All Pissed
Very Well … Axe Pandit
Vaginas Will Always Prevail
WTI is about to gain parity with Brent.
so much for cheap, domestic oil
Sell the rips.
Bartiromo trash-talking Gold again, must be Monday.
I bet she's just exercising her lips (and anti-gold rhetoric) in preparation for giving Warren Buffet another hummer.
confusing her with Becky Quick
(Dup)
Every boot licking, gold-hating, corporate media whore looks the same to me.
You would think she would love gold being the digger that she is. Rumor has it she is pretty good at polishing too.
i was gonna say that was the one good bonus chart to have...that was prior to seeing it there actually. all this action says "market crash"...but we've had it have we not? in gold, silver, and all the other commodities. the whole complex has gotten killed. my next best guess is that real estate will start to buckle as well. perhaps quite dramatically but we shall see.
5 hr chart bearish engulfing candle for silver=might get a great chance to buy the dip again (not that where it's at now isn't result of a huge dip; just pointing out the technical side of things as something short term to look at). The last 5 hr engulfing candle was a bearish one and it was the one that went from 18.10 to 20.06, so this suggests perhaps a move into the low 18s. So maybe one more wash out before re-launch.
Gold's 5 hr chart has a BULLISH engulfing candle, so this is interesting, as the PMs may diverge a bit on correlation. Will be interested to see if indeed gold and silver go their separate ways temporarily as these candles imply. Either way buying dip prudent. Fed keynesian clowns believe in ctrl-p and that means not just stocks, but also cmdtys go up.
Not buying PMs above $1000/$16, sorry. I did not drink the Casey Koolaid.
Gold was oversold on technicals, short term bounce. EUR has the ECB back (and Fed), USD bought and sold on hedging out of Asia, will go bid if oil goes to 100 (China/Asian oilers will try and knock the price down), AUD is sell on rallies, stocks are heavy on geopolitical, yields. BlackRock called the 'sell' on EM equities and gold, sans JPMorgan go long commodities (muppet trade). Slight bounce to major selling again. It's all Asia, middle east and South America.
Taper my a-hole