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Stocks Mixed As Bond Yields Drop And VIX Pops

Tyler Durden's picture


Stocks and bonds disconnected today (again) with Treasuries pressing to lower yields - 30Y down 1bp to 3.73%, rallying 3 to 5bps off mid-Europe-session high yields to new 10-week lows. Stocks and VIX disconnected today as VIX trading higher all day - even as stocks opened energetically higher. Stocks and credit disconnected today (again) as the afternoon pump in stocks back from European-close turmoiling lows was not seen in credit at all. Equity indices were very mixed today with the Dow underperforming (after its exuberant run Friday) and the NASDAQ the big winner thanks to AAPL. Retailers continue to diverge from the market. The USD closed marginally lower from Friday's close (with AUD and GBP strength the drivers) and commodities diverged with oil and copper higher and gold and silver lower (though well off their smackdown lows by the close) - with their worst day of the year.


The S&P 500 rallied to near all-time highs to open the day-session... (and managed to creep to unchanged year-to-date)


...before tumbling into the European close -


...only saved by AUDJPY rally to close practically unch...


VIX and Stocks disconnected...


Credit and Stocks disconnected...


Treasuries and Stocks disconnected


As bonds rallied non-stop following the worse than expected German consumer confidence...


Commodities diverged notably with PMs suffering their worst day of the year so far...


Charts: Bloomberg

Bonus Chart: The last time we saw such a wide divergence between the market and the Retailers ETF was at the top in 2007... (h/t Brad Wishak at NewEdge)


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Tue, 01/21/2014 - 17:30 | 4353134 maskone909
maskone909's picture

Ah i see. Moe opened his mouth and was forced to resign.

Tue, 01/21/2014 - 17:31 | 4353141 knukles
knukles's picture

Including his own job....

But, come on folks...
Cheer up

Yesterday we had Hanjobs for the Homeless and today...


Just shaking my head for a multitude of reasons.

Tue, 01/21/2014 - 17:11 | 4353048 Sudden Debt
Sudden Debt's picture

my money is on a gold and silver recovery tomorrow :)

2% rise and my summervacation will be paid for :)

Tue, 01/21/2014 - 19:04 | 4353465 disabledvet
disabledvet's picture

I was thinking more along the line of nationalizations actually. "not necessarily bearish for gold and silver." just make sure you keep enough...oh, wait. there is no FDIC in Europe.

Tue, 01/21/2014 - 17:26 | 4353060 eclectic syncretist
eclectic syncretist's picture

And IBM misses on top and bottom lines, guides lower for 2014, and adds some icing on the cake by shifting to emphasizing non-GAAP earnings. 

must be their way of redefining a "blow-out" quarter.

edit: anyone who does technical analysis should have a peek at IBMs five-year chart.  Looks like a pretty obvious short for anyone who cares.

Tue, 01/21/2014 - 17:17 | 4353080 TheRideNeverEnds
TheRideNeverEnds's picture

Don't worry I am sure they will mark the VIX down a dollar or two tomorrow for the settlement as the e-minis explode through 1850 on more light volume and bad news...

Tue, 01/21/2014 - 17:20 | 4353094 EuropeanBankster
EuropeanBankster's picture

The bonus chart says it all.. Attention shoppers: shop more to close the gap to S&P

Tue, 01/21/2014 - 17:30 | 4353135 cora
cora's picture

Bonus Chart: The last time we saw such a wide divergence between the market and the Retailers ETF was at the top in 2007... (h/t Brad Wishak at NewEdge)



So we still have one year of unicorns??

Tue, 01/21/2014 - 19:05 | 4353469 disabledvet
disabledvet's picture

bull market corrections are never minor affairs.

Tue, 01/21/2014 - 17:23 | 4353105 Comte d'herblay
Comte d'herblay's picture

J B T M Fing D

Tue, 01/21/2014 - 17:29 | 4353132 eclectic syncretist
eclectic syncretist's picture

Ebay and netflix are on tap with their earnings tomorrow.  I wouldn't buy either of them, even if they dip a whole lot more.

Tue, 01/21/2014 - 18:40 | 4353403 BigRedRider
BigRedRider's picture

VIX at 12.84?  Wake me when it passes 89.53 like it did back in October 24, 2008...Ah, those were the days...yes......

Tue, 01/21/2014 - 18:57 | 4353447 MeelionDollerBogus
MeelionDollerBogus's picture

Still holding steady for SPY x HVU (1/11) = 218.8 ... seems losing 0.1 off the constant moves the estimation for HVU from SPY as an input by about 0.5% (e.g. from 219.0 to 218.9 will produce a value of HVU 0.5% lower on the same SPY price input).

Tue, 01/21/2014 - 19:11 | 4353490 AynRandFan
AynRandFan's picture

I pretty much left paper assets behind a year ago when I finally realized nothing made sense anymore.  My hope now is that we might see an inverse relationship develop between equity prices and gold and silver, as the bubble in stocks approaches the popping point.  Other tham that, I'm out of ideas other than real estate reflation.  Trouble is, real estate is non-liquid and during deflationary times is like an anchor dragging you down.

Sat, 01/25/2014 - 05:50 | 4366068 shawnmike
shawnmike's picture

Meanwhile the controlled sell-off in US equities is just that, completely controlled, and ready for the late day ramp. All while they go mad for bonds. Whatever, don't think anyone's jumping from windows on Wall Street just yet

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