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"War-Off" Premium Gone - Dow Turns Red

Tyler Durden's picture




 

While gold, silver, and crude oil prices had already recovered their initial knee-jerk losses from the "war-off" moves Sunday night, US equities were sticking to their BTFD guns until Boehner, Pelosi, Cantor, and Levin came out behind President Obama's Syria strike plan. S&P futures slumped to Sunday night's open, vacillated, then the Dow dumped over 120 points from its pre-ISM highs to break red (followed by Trannies and the S&P). Treasuries have been slow to react; holding on to losses (30Y +12bps) until the decision was clear from stocks, and then yields fell more significantly as investors greatly rotated back to safety. The USD is not moving much but JPY strength (carry-off) is driving it modestly lower. VIX is back over 17%.

 

Dow just went red...

and Trannies already and S&P is right behind it...

 

Gold, Silver, and Crude had already ignored any "war-off" premium...

 

But from Kerry's initial war drums, Trannies are the big loser and they finally decouple in an oil-price-hikes-are-not-good-for-transportation-stocks manner (as opposed to pipeline driven high beta exuberance)...

 

 

Charts: Bloomberg

 

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