Hilsenrath Ramp Vs Hindenburg Omen; Dow Ends 'Unch' Amid USD Crunch

Tyler Durden's picture

Stocks ended the day at the highs of the day with small gains as the internal anxiety implied (highs vs lows, adv vs dec) by the re-appearance of the Hindenburg Omen battled (Icahn vs Ackman-like) with the one-way-street predictability of a Hilsenrath-inspired 330RAMP Capital appearance. Hilsy's "no July Taper" un-surprise-note added 7 points to the S&P lifting it comfortably green (and knocked 5bps off Treasury yields).


Trannies bounced hard after dropping to unchanged from the 6/19 FOMC levels (+1.4% from the lows) and along with the Dow ended the day practically unchanged.


Funded by yet another dash-for-trash ramp the 'most-shorted' squeeze-fest...


The Russell just kept on rising (+1%) as stocks ended the day at their highs. Despite the volatility (and close-to-close stability) in stocks, FX markets were the main movers today (and high-yield bonds) as EURUSD pushed back up to pre-FOMC 'Taper' levels from 6/19.


This USD weakness weighed across all the majors with JPY back under 99 and AUD well bid. Cross-asset-class correlations picked up as the day wore on.


Homebuilders continue their two-day tumble - but were ramped and rescued with the Hilsy crap...


High-yield credit (bonds not CDS) had a second day of weakness (worst run in a month) before being rescued...


and Treasuries stabilized in a narrow range (steepening modestly) before ripping lower in yields on Hilsenramble...


Another day of good-looking headline data (with weakness underlying) provided more angst in the good-is-bad meme and high-beta underperformed as a new Hindenburg Omen appeared.

We last saw The Hindenburg Omen appear on 6/19 (FOMC day) and stocks dropped notably.


Today's re-appearance did not have the same catalyzing impact yet but we will be keeping an eye on it.


Charts: Bloomberg