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Hard-Assets Surge As Equity Bulls Purge

Tyler Durden's picture





 

Markets started the day in exuberant mood. Investors were greatly rotating away from bonds into stocks, "war-off" premia were holding up and oil prices were not shooting higher. Then the macro data hit - better-than-expected - and things got a little anxious in equity land (and bond yields pushed higher in Taper-on mode). Then Boehner et al. showed their support for Obama and stocks started to crumble. Commodities had already risen back above Friday's close (dismissing any de-escalation) and while stocks stalled on their collapse lower at Sunday's futures open, they inevitably dumped back to unchanged from Friday. VIX jumped back above 17.25% and the curve flattened and bonds (slow to start) saw yields dump back lower. A late-day pure algo run to VWAP saved the day and closed us green in stocks buy Trannies are not happy as WTI closes back above $108.50.

 

Cash equity markets followed a similar pattern to Friday... with a late-day stck save by the Johnny 5...

 

S&P futures dumped to unchange from Friday and were rescued by an algo ramp to VWAP into the close...

 

Since Kerry's 8/26 speech, only energy is green and builders and financials are hurting...

 

Treasuries were late to the safety party and also did not participate in any great way as stocks ripped into the close...

 

it seesm hard assets were the safe-haven choice of the day as Oil and Gold pushed higher tick for tick...

 

The FX markets were very quiet...

 

Some very different reactions across asset-classes today to the news and data... (Stocks shrugged at ISM but were volatile then dumped on Boehner; Bonds dumped on ISM but were slow to rally back on Boehner as it seemed 'safety' was sought in Gold and Oil)

Charts: Bloomberg

 


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