Turbocharged Trannies & Tumbling Treasuries

Tyler Durden's picture

The Dow Transports has outperformed the Industrials by over 3% year-to-date (+1.9% vs -1.1%) as both the Trannies and Russell pressed new record highs today (as the Dow and S&P lagged on bigger-cap earnings disappointments). Treasuries lost ground with the front-end worst (5Y +6bps) but 30Y was unch leading to a significant further flattening in the curve to its 2nd flattest close in 17 months. The USD ended the day (and week so far) unchanged as a big drop in CAD was offset by a rally in AUD and GBP. Gold & silver dribbled lower all day and were smacked into the close; with copper flat to slightly lower on the day as WTI surged towards $97 (narrowing the spread to Brent to 1-month lows). It was recent business-as-usual in VIX as it leaked higher testing 13% once again and credit markets remain divergent from stocks (though the relative safety of investment grade credit was bid this afternoon). For those keeping track, today's market was brought to you by the letters USDJPY and the number 17.62.

 

The S&P and Dow remain red year-to-date but investors just can't buy enough Trannies...

 

As this morning's open saw a huge bid for them...

 

Spot The Difference - The JPY 500 continues to trade well... S&P 500 = USDJPY x 17.62...

 

VIX continues to press higher as stocks limp higher...

 

and Credit markets don't seem to be buying the dip...

 

The underperformance of the front-end in Treasuries is clear (and escalated in the last two days) in 2014...

 

5s30s are near their flattest in 17 months...

 

Oil surged as copper, gold and silver slid (with a late-day tumble in the PMs)...

 

The last hour saw the most selling of the day in PMs...

 

Charts: Bloomberg

Bonus Chart: Either the AAPL-Gold relationship has finally broken or we're going to see some fireworks one way or the other soon... (h/t @Not_Jim_Cramer)