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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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Thu, 01/16/2014 - 17:06 | 4338902 HedgeAccordingly
HedgeAccordingly's picture

it is cool. the syndicate has it under control... driveless cars? why not driveless market? http://hedge.ly/1j7WRsU

Thu, 01/16/2014 - 17:17 | 4338921 Boris Alatovkrap
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?)

Thu, 01/16/2014 - 17:30 | 4338967 skank
skank's picture

"let's keep going"

Thelma & Louise:Ending Scene
http://www.youtube.com/watch?v=4z88U915uq8

Thu, 01/16/2014 - 17:09 | 4338905 Obchelli
Obchelli's picture

Billish foreva

Thu, 01/16/2014 - 17:11 | 4338912 eclectic syncretist
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.

Thu, 01/16/2014 - 17:17 | 4338922 Obchelli
Obchelli's picture

And NASDAQ so strong last week just boggles my mind.

 

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

Thu, 01/16/2014 - 17:26 | 4338954 spastic_colon
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

Thu, 01/16/2014 - 17:18 | 4338927 skank
skank's picture

get your fraud on..

Missy Elliott - Work It (HQ)
http://www.youtube.com/watch?v=zm28EEeyLek

 

Thu, 01/16/2014 - 17:21 | 4338939 HUGE_Gamma
HUGE_Gamma's picture

everyone loves the BONUS CHARTS!!!

Thu, 01/16/2014 - 18:07 | 4339046 Wait What
Wait What's picture

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

Thu, 01/16/2014 - 17:26 | 4338951 Spungo
Spungo's picture

Does red mean up?

Thu, 01/16/2014 - 17:27 | 4338952 the not so migh...
the not so mighty maximiza's picture

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

Thu, 01/16/2014 - 17:28 | 4338959 fuu
fuu's picture

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

Thu, 01/16/2014 - 17:41 | 4338989 Rainman
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.

Thu, 01/16/2014 - 18:11 | 4339066 Wait What
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.

Thu, 01/16/2014 - 19:54 | 4339359 CarrierWave
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?

Tue, 01/21/2014 - 02:04 | 4350734 shawnmike
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 americans....at least the ones paying the mortgages are reducing the amount of debt that they owe.http://leatherjacketsshops.blogspot.com/2014/01/buy-england-leather-jackets.html

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