This page has been archived and commenting is disabled.
Bonds & The Dollar Ignore Equity "Putin Deja Vu" Exuberance
US equity markets are up around 2% from Friday's close - extending yesterday's hope-filled gains on the back of Vladimir Putin not nuke-ing the world this morning and lower-than-expected inflation prompting hope for moar free money tomorrow. This jump is a ridiculous deja vu all over again of Putin's first press conference. Bear in mind that the USD is unchanged on the week and Treasury yields are up a mere 1-2bps - so hardly a resounding risk-on conviction. Following yesterday's epic low volume, today was little better. Copper was flat as Oil prices rose back towards $100. Gold and silver were pummeled - just for good measure (gold's biggest 2-day drop in 3 months) - as was VIX (which took over the role of S&P 500 driver from AUDJPY after Europe closed). The afternoon saw VIX diverging (higher ahead of tomorrow's FOMC) from rising stocks. For the week, USD unch, Bonds unch, Stocks +2%, Gold -2%.
Deja Vu all over again...
As AUDJPY ruled until Europe closed
with VIX strongly in control from there - until 2pmET for that late-day divergence, which is worrisome...
While stocks are exuberant, Treasuries are not...
Credit markets have rallied but merely back to pre-Putin PR 1.0 levels...
And nor is the US Dollar... plenty of vol here but the USD s almost dead flat...
As gold and silver mirror equity strength...
Gold's biggest 2-day drop in 3 months... as it looks like gold will have "golden cross" tomorrow as the 50DMA crosses above the 200DMA
Charts: Bloomberg
Bonus Chart: Something happened today... USDJPY and Bonds stayed in sync as stocks disconnected
Bonus BonusChart: A little reminder of the concept of mean-reversion - and how it is gone from the mainstream media's vocabulary... (h/t @Not_Jim_Cramer)
Bonus Bonus Bonus Chart: The Japanese stock market is not enjoying the exuberance of global stocks...
»
- 5887 reads
- Printer-friendly version
- Send to friend
- advertisements -
Dollar is looking over the edge of a cliff....
There are no markets anymore, just interventions.
I don't know what to make of this, but the TICK for most of the major averages was making wider than average swings today. Some of the intra-day readings were as extreme as you see at the OPEN or CLOSE.
But the bigger question is; who is buying this market at these levels, with all the political chaos going on?
Literally heard a CNBC talking head say that markets were buoyed by Putin telling the world he would not go beyond Crimea. WHAT FUCKING CHAOS?
We have stepped through a rip in space-time.
Pfffft! Putin's on the other side of the friggin' planet! What harm can he possibly do?!?
Bonus Bonus Bonus Chart!! It's like Christmas in March!
Just once I would like to read "Bonds & credit up, stocks not buying it."
101.40 ......I missed the chart with Gold over $1400 ?????
just buy stocks- very simple game plan- like late 60's Packers power sweep right...it works until Yellen says change the play goyz!
I think George Carlin really did say it best actually:
http://www.youtube.com/watch?v=B7LBSDQ14eA
"Vuja De people. Vuja De....
I am 50% in the S&P 500 and 50% in physical GOLD (in my possession).One goes up and the other goes down - and no one seems to have any rational explanations.
Is there ANY true market valuation anymore?
"Is there ANY true market valuation anymore?"
1+1 still = 2.