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Late-Day "Panic" Leaves Stocks With Worst Month Since May 2012

Tyler Durden's picture





 

While the Dow suffered its worst monthly loss since May 2012, it is actually holding up better than the rest of the US equity indices since Kerry's speech on Monday.

 

With the high-flying Trannies down 4% since Kerry, they cap the worst in the last 23 months (and worst week in the last 11 months).

 

Energy outperformed (unchanged) on the week and financials were major losers down 3% but hombuilders were hammered post-Kerry also ending at the lows of the week.

 

But today's just idiotic swings in S&P 500 futures from the start of Kerry's speech were remarkable (and on not so light volume)... (the dark line is VWAP... oh so 'human' related indicator of algorthmic trading)

 

VIX closed at its highest in over 2 months with its biggest weekly jump in over 4 months.

 

It seemed the UMich drop this morning (though it was a beat) and positive Chicgo PMI was enough to spark some Taper-driven selling; when Europe closed that stopped... then once Kerry (and then Obama) began to talk, markets (mostly stocks) went a little panic mode...

 

Since the June FOMC "Taper" meeting... Silver and oil are winning, then Gold, with the S&P 500 and Bonds down...

 

Away from equities, FX, commodity, and bond markets also turmoiled...

The USD rallied (on the back of EUR and JPY weakness mostly) off late-Tuesday lows to end up almost 1% on the week (biggest USD jump in the last 9 weeks).

 

Despite USD strength gold ended the week almost unchanged (well off its highs) but silver dropped its most in 9 weeks...

 

and copper dumped around 4% on the week (worst week in 4 months).

 

WTI - slammed lower from its mid-week highs - ended up just over 1% on the week at around $107.60.

 

Treasuries were all over the place (and active) but the message seemed to be a reach for duration as the curve flattened notably...

 

It's worth noting that the FX, bond, and comodity markets appeared to reverse their plunge when silver saw its smack down on Wednesday. Though stocks were flat, they did stall the selloff - for now...

Charts: Bloomberg

 

Bonus Chart: Betcha can't guess the best performing bond market in the world in the last few months.... JGBs have been on a tear... all that safe-haven, anti-inflation, responsible fiscal policy we guess...

 

as it seems Treasuries and JGBs have 'recoupled' at their historical risk premia...

 


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