Despite Late-Day VIX Slam, S&P Slides Back Into Red For 2014

Tyler Durden's picture

While victory was declared yesterday, today was a let-down for the exuberant. High beta (NASDAQ and Russell) pushed on but the S&P, Dow, and Trannies slid leaving the NASDAQ YTD best performer (+1%) and the S&P back into the red for 2014. Financials underperformed, Utilities outperformed. Treasuries rallied all day - with the long-end underperforming and a notable flattening across the curve (30Y -2bps on the week, 5Y +2bps). The USD had a quiet day as JPY strengthened modestly (hence the weakness in the S&P) as overnight AUD weakness (poor jobs data) left that carry pair alone in the dark. VIX and credit markets have been notable underperformers relative to stocks in the last 2 days. Commodities were quiet all day with some early downside pressure in the precious metals unwound (leaving then down 0.5% on the week). Of course, it wouldn't be the US equity market without the ubiquitous VIX slam attempt to ignite momentum and get the S&P green - it failed for once!



VIX is not amused... (but of course - the last few minutes saw a VIX smasher...)


Nor is credit...


But the NASDAQ and Russell don't care - if it worked yesterday, it will tomorrow, right?


on the day the late-day ramp saved the NASDAQ from a red close and rammed Trannies higher...


Treasuries rallied back into the green for the week...


Commodities were relatively quiet aside from some pressure in the early European session...


Charts: Bloomberg

Bonus Chart: Stock Sentiment vs Bond Sentiment is at a worrying level for stocks bulls (h/t @Not_Jim_Cramer)

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HedgeAccordingly's picture

it is cool. the syndicate has it under control... driveless cars? why not driveless market?

Boris Alatovkrap's picture

Free market SHOULD is be "driverless"! Who is driver? Ben? Janet? Or maybe is more accurate Thelma & Louise?

(BTW, who is drive 1964 Baby Blue Convertible Thunderbird over precipice, Thelma or is Louise?)

eclectic syncretist's picture

And Intel's stinking it up with an earnings miss after the close.  All these earnings missing and the Fed tapering add up to a big decline at some point, IMHO.

Obchelli's picture

And NASDAQ so strong last week just boggles my mind.


I guess Intel miss is bullish for markets too...

spastic_colon's picture

when all else fails ram the weighted stocks higher to pump the indexes  e.g. PCLN, AMZN, GOOG, NFLX, AAPL......they influence more than one index

skank's picture

get your fraud on..

Missy Elliott - Work It (HQ)


HUGE_Gamma's picture

everyone loves the BONUS CHARTS!!!

Wait What's picture

what, me, worry? fuggedaboutit! everything is bullish until QE ends. everyone knows it's never going to end. party on.

Spungo's picture

Does red mean up?

the not so mighty maximiza's picture

its a fucken recovery you idiots, get with the programe Sap & Pauper

fuu's picture

I moved all my cash to an Argentinian 3x ETF. YACHTS ON ME!

Rainman's picture

It's a ying and yang, back and forth. A 10y over 3.5 will monkeyhammer prices on overleveraged housing and bring on the next foreclosure shit storm, thus slamming equities trading at already farcical levels. The jugglers have about 5 black swans in the air looking to land.

Wait What's picture

what fortune i must have to be on the cusp of seeing SHTF for a 3rd time in my life! granted I was just a kid during the 1st, and had no idea WTF was going on, but there's always a butterfly effect.

CarrierWave's picture

ZH is really running out of Charts forecasting a collapse in the Markets..

Our beloved SP500 and friends gave our 401K +80% since Nov-2011 and will keep trending higher, regardless of what makes sense or seems as an 'extreme' for ZH article writers.

Enjoy ZH's articles but stay with the trend which will continue higher in 2014 courtesy of the Central Banks. Oh, and add to that an Election year - do you really think the Government wants to see the market collapsing this year?

shawnmike's picture

lending money against depreciated assets (houses) where the mortgage borrower has a good credit history is about the safest investment you can get, especially compared to a society that elects a government that is corrupt and is otherwise creating mountains of debt that impoverish multiple generations of least the ones paying the mortgages are reducing the amount of debt that they owe.