Credit Trumps Stocks For 4th Day In A Row

Tyler Durden's picture

From the open last Thursday, high-yield bonds (as priced by the HYG ETF) are down notably while stocks are in ignore any taper news mode. The last 4 days have seen a very similar pattern play out where stocks jump exuberantly at the open, ride through POMO and the EU close, and then drop back in hurry to credit's less sanguine view of the world. It seems each and every ramp in the S&P away from credit stalls at the 50DMA and today was no different.


Credit seems to be a little less excited than stocks... (blue - stocks, red - credit spreads, green - HYG)


and stocks just can't break that 50DMA...


Charts: Bloomberg

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gjp's picture

I dunno, for all those little dips, it's still higher every day.

And with this post out there now, how long before the 50DMA is soundly trounced?  Ben just got off the phone with Kevin ... cleared for take off!

SheepDog-One's picture

Higher EVERY day? Well depending on what timeline youre looking at....wasn't the DOW recently about 500 points higher?

flacon's picture

These markets are weak as anything. I am holding my IWM puts until Friday. 

Wednesday is a half day. Thursday is closed. Investors positioning themselves for a major sell-off coming soon. 

disabledvet's picture

well sounds like credit needs a "catch up" provision. Mr. Chairman! Start Printing!

slaughterer's picture

WTI to break $100 in a few seconds.  

Gypsyducks's picture

WTI "market" is a fucking manipulated joke.

Hedgetard55's picture

"What hath Ben wrought?"

dcb's picture

exactly, 4 days, not getting above the 50 day moving avg, and no drop. the market is a joke,

But the past 4 days you can also see it's a short covering rally, those are seen when the clos of the day is the close, but stocks are up the next day for multiple days.

HowardBeale's picture

Did anyone else notice that boy with his finger in the dam?

I Am Not a Copper Top's picture

So many jokes possible, will not even try

Headbanger's picture

No back above 50 dma for you!   For year!

rubearish10's picture

It's bedazzling to think S&P only 3.4% from all-time highs. Yep, the safeest and most secure asset class, yep!

bdub2's picture

Fuck you bernanke and Miners...looks like I'll be skipping the Fourth at the in-laws this year..."thanks for the miners moron" from the 11 year old prodigy nephew whose name I never remember isn't my idea of freedom. i'd rather hear it from the wife the rest of the year than explain sentiment indicators again.

Hedgetard55's picture

Can't believe I bought ABX for 50 and sold for 53 not so long ago.

Just when you think ABX and SLW can't possibly go lower, they do.


Mish's butt must be hurtin' about now.

rubearish10's picture

Mish is a fucking jerk-off, ignorant scumbag seeking pity in the worst way. Sorry about that but he is fucking arrogant, rude and a moron! Ok, done.

bdub2's picture

good call. 

When miners were #1 etf 3Q 2012 I thought I officially figured out the markets at long last. Looking back, of course, every sign said short. Even now, they look like death. Maybe they're all going out of business. I'm buying FB.

disabledvet's picture

utilities. MANY and varied...if trading is your wont.

rubearish10's picture

You were not alone on that idea. To keep watching shit roll down to the bottom (in some cases likely zero) has been stunning to say the least.

rubearish10's picture

Yeah Mish - He puts out all this sorrow for his dying then dead wife (collects donations) and suddenly and quite quickly finds the love of his life on a dating website. Really? Keep that shit to yourself that fucking prick!

HowardBeale's picture

No reason to expect the ability to buy webspace to be an indicator of sanity; near as I can tell, the guy is a true sociopath.