Bonds & The Dollar Ignore Equity "Putin Deja Vu" Exuberance

Tyler Durden's picture

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...

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Soul Glow's picture

Dollar is looking over the edge of a cliff....

Say What Again's picture

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?

BandGap's picture

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.

somecallmetimmah's picture

Pfffft!  Putin's on the other side of the friggin' planet!  What harm can he possibly do?!?

VulpisVulpis's picture

Bonus Bonus Bonus Chart!! It's like Christmas in March!

jtz5's picture

Just once I would like to read "Bonds & credit up, stocks not buying it."

Seasmoke's picture

101.40 ......I missed the chart with Gold over $1400 ?????

skwid vacuous's picture

just buy stocks-  very simple game plan- like late 60's Packers power sweep works until Yellen says change the play goyz!

disabledvet's picture

I think George Carlin really did say it best actually:
"Vuja De people. Vuja De....

Jack4952's picture

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?



moneybots's picture

"Is there ANY true market valuation anymore?"


1+1 still = 2.