Bonds & Stocks Ignore FX, Commodity, And Credit Volatility

Tyler Durden's picture


With a 180 point high to low plunge during the day, the Dow underperformed the rest of the major US equity indices which ended practically unchanged on the day. The market appears to be replaying the same opening POMO/EU pump to afternoon dump mode - with today's late-day ramp attempt to scramble back to VWAP. Treasury yields also oscillated but closed +/-1bps. But elsewhere, markets were turmoiling. The USD is up 0.5% on the week with 1.5% drop in JPY today which entirely disconnected from US equities after Europe closed. Credit markets were the voice of reason and equities (once again) ripped and dipped back to their sanity. WTI crude surged up near $100 (+3% on the week) as the USD weighed on gold and silver which are -0.6% and 1.6% on the week. Another day, another failure for the S&P's 50DMA.


Quite a roller-coaster of a day in the S&P... with the mandatory 330 ramp scramble back to VWAP... (and a try for green at the cash close)...


as stocks once again ripped and dipped back to credit's reality...


The nasdaq is outperforming its peers post-FOMC (for now)...


and oddly - Discretionary once again tagged perfectly unchanged from FOMC and then sold off... also notice the pattern of day trading in homebuilders...


Once oil started moving this morning (and the USD was bid on safety concerns from Egyot headlines) then gold and silver slid almost linearly lower...


Charts: Bloomberg and Capital Context

Bonus Chart: Brazil's BOVESPA had its worst day in 2 years... to 4 year lows

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Tue, 07/02/2013 - 16:29 | 3715137 stocktivity
stocktivity's picture

Tylers....just between you and me....It's all Bullshit!!!!

Tue, 07/02/2013 - 16:42 | 3715170 TrustWho
TrustWho's picture

No it is not when you have to layoff good souls to survive.

Tue, 07/02/2013 - 16:30 | 3715140 carlsbro
carlsbro's picture

Bitchez. Gold. Bernake. Chart. Plunge. FED. Credit. Silver. Surge. 

Tue, 07/02/2013 - 16:56 | 3715222 Cdad
Cdad's picture

I did, indeed, experience "buy on the dip mentality" in the late afternoon of today's session...and increased my silver position.  

Tue, 07/02/2013 - 17:14 | 3715268 Cdad
Cdad's picture

And low and behold...the compromise between Morsi and the Egyptian military, rumored by The BlowHorn [CNBC], turns out to be nada.  Whocouldanodeit? 

Tue, 07/02/2013 - 16:31 | 3715141 Goldilocks
Goldilocks's picture

Rolling Stones - 19th Nervous Breakdown (Stereo) (3:57)

Tue, 07/02/2013 - 16:38 | 3715151 otto skorzeny
otto skorzeny's picture

CNBC was hyping the fact that hedgies will let you into their little rip off club for as little as $1G( no coke and whores for the muppets though) so you too can massively underperform the S&P but still get the perk of sounding like a massive douchebag when you say you are invested in a hedge fund.

Tue, 07/02/2013 - 16:53 | 3715209 Divine Wind
Divine Wind's picture




At 2 and 20?


Tue, 07/02/2013 - 23:27 | 3716621 BeetleBailey
BeetleBailey's picture

otto: stop watching the idiot channel on the idiot yourself...your brain will turn into mush.....

Tue, 07/02/2013 - 16:40 | 3715168 TrustWho
TrustWho's picture

The USA Locomotive is pulling the train again, YAAAAAHHHOOOOOOOOOO, I gave notice to 15 workers at my metal fabrication plant yesterday to get under 30 for ObamaCare....Sad day folks......

Fuck Obama and Bernanke....(Note: Bernanke's manipulation elected Obama!)

Tue, 07/02/2013 - 16:50 | 3715195 Divine Wind
Divine Wind's picture



Ohhh shit, Brother.

With the new liberal castrati contingent on ZH, you just marked yourself as an evil capitalist pig who is only concerned with your own profits.

Expect to be on permajunk status until something shiny and blinky comes along to distract them.

Tue, 07/02/2013 - 17:09 | 3715258 Panafrican Funk...
Panafrican Funktron Robot's picture

Under 50 employess = you're exempt from the employer responsibility portion.  You've either received bad advice, are stupid, or a liar.  Mind you, I think ACA is a steaming pile of shit, but it's the retarded disinfo that actually strengthens the argument for it.

Tue, 07/02/2013 - 16:47 | 3715182 Jackagain
Jackagain's picture

Stocks and bonds are ignoring everything except QE Infintiy...

Tue, 07/02/2013 - 16:48 | 3715188 EclecticParrot
EclecticParrot's picture

There’s a Fed chief who’s sure

all that craters is gold

And he’s printing a stairway to Hell

When he gets there he knows

if our stocks have been sold

with a word he can get us to buy more

Oooh, ooh-ooh, and he’s printing a stairway to Hell


There are signs in the market

but he wants to be sure

‘Cause he knows all Fed words have two meanings

In a tree by the brook there’s a goldbug who screams

Sometimes all of our plans are misgiven


And it makes me wonder


And it’s whispered that soon if we all call his bluff

then the markets will lead us to reason

And a new day will dawn for those who are long

and Wall Street will echo with laughter


If there’s a downdraft in your bond fund,

don’t be alarmed now

It’s just Ben tinkering with his ‘legacy’

Yes there are two paths we could go by

But in the long run

it’s too late to change the road we’re on


And it makes me wonder


{guitar solo, etc., etc.)


And he’s printing a stairway to Hell

Tue, 07/02/2013 - 16:51 | 3715204 Divine Wind
Divine Wind's picture



Outstanding rendition!

Tue, 07/02/2013 - 17:09 | 3715256 Pareto
Pareto's picture

+100 brilliant!  "And Wall Street will echo with laughter."

Tue, 07/02/2013 - 16:55 | 3715217 gatorengineer
gatorengineer's picture

The hard question on Fridays Jobs report is good news good or bad?  Is bad news only good?  I think bad news can only be good, but good news may or may not be good.... Need more drugs, is it obvious?

Tue, 07/02/2013 - 17:03 | 3715241 otto skorzeny
otto skorzeny's picture

It will be a big beat to the upside followed by a big am rip and then a gradual selloff to finish up 125 on the Dow.

Tue, 07/02/2013 - 17:18 | 3715287 Hedge Fund of One
Hedge Fund of One's picture

Whatever the market does that day will determine what the spin will be on whether the news will be considered good or bad.

Tue, 07/02/2013 - 23:28 | 3716624 BeetleBailey
BeetleBailey's picture


Tue, 07/02/2013 - 17:26 | 3715316 carlsbro
carlsbro's picture
Ain't it funny how things happen
Just as we think we've got it all straight
Everything seems to be moving forward
But instead we just sit around and wait

Seems things are in a lockdown
Nervous looks all around
Everyone is speaking in whispers
No one wants to make a sound

I'm losing my touch, yeah
Losing my touch
Losing my touch baby, way too much
Baby, get me out of here
It should be clear

Keep an eye on on your front door, baby
I'll be slipping in round the back
I just need a little, a little cab fare
And then I'll let you hit the sack

'Cause I'm losing my touch
Losing my touch
Yes I'm losing my touch way too much
Baby, get me out of here
It should be clear, yes

I ain't going to keep it long, baby
But just long, long enough
I've got to pick up my passports
And I've got to get my stuff

'Cause I'm losing my touch
Just losing my touch, baby, baby, baby
I'm losing my touch way, way too much
Baby, get me out of here
Well it must be clear

Losing my touch
Yes I'm losing my touch
Yes I'm losing my touch way too much
Baby get me out of here

Tue, 07/02/2013 - 18:04 | 3715460 SheepDog-One
SheepDog-One's picture

180 point day in the 1970's would have been considered 'armageddon'.

Tue, 07/02/2013 - 18:38 | 3715603 EclecticParrot
EclecticParrot's picture

Of course, with the DOW under 1000 in the 70s the % whiplash would've been much greater, but even so your point is spot on, Sheep.  TV blathering hosts will suggest "uncertainty" or "mixed Fed signals" as the reason, but we all know the true cause:  algorithmic control of much of the modern trading day, particularly the first and last few hours.  No question today the algos wanted to flirt with the 50 DMA to hit some stops and load up on shorts, but I'm convinced that, even without Egypt or other factors,we'd have headed down after noon.  None of the intraday technicals supported the low-volume ramp, and most every early 15-min candle had big upper wicks, evidence the shorts planned their beatdown quite early.

Thu, 07/04/2013 - 15:28 | 3721855 spine001
spine001's picture

The good/bad news good or bad is pure BS as it is always discovered post fact. Never ex-ante. The reality is they reflect fractal bifurcations in the system and can't be predicted ex-ante. Since the reasoning or mental model that drives the prediction is pure BS

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