USD Bid As Bonds, Bullion And Stock Bulls Battered

Tyler Durden's picture

US equities close weak for the 4th day in a row - echoing last week but without some earth-moving data to save them tomorrow as NFP did last Friday. Bonds and gold were also hit hard and the USD was well bid on the day. The USD is now unchanged on the week though (with AUD down 2%) and 30Y bonds are also practically unchanged (though 5Y is +5bps on the week). JPY crosses were unable to get any traction in stocks before Europe closed but this afternoon saw them recouple and lift stocks back to unch on the day - only to disconnect into the close as stocks tumbled once again. The Russell 2000 ended back below its 50DMA (2nd day in a row) despite a ramp to try and save it. New 52-week lows spike to near 4-month highs. MOMO names rescued NASDAQ a little.

 

New 52-Week Lows are surging...

 

The S&P managed to get back to green on the day but then fell back into the close...

 

JPY carry was disconnected early, regained some afte Europe closed, but then fell apart into the close - something has changed...

 

As the indices fade back sharply...

 

Oddly - look at gold, silver, and oil on the week...

 

As Treasuries are sold...

 

FX markets have seen the USD back to unchanged on the week also... (as AUD and JPy weaken)

 

Seems like the smell of taper in the morning is in the air... which credit has apparently been considerably more anxious about for a while...

 

For those hoping for tomorrow's bounce, there is one ingredient missing - the big short position build up... "most shorted" are pretty neutral after the flush squeeze on Tueasday's open...

 

Charts: Bloomberg

Bonus Chart: The Dow is falling back rapidly to the value of the Nikkei once again... will a taper mean this time is different on a bounce?