High-Yield Credit Hits 10-Week Wides As Stocks Bounceback To Unch

Tyler Durden's picture

Despite an early dump on dismal data, US equity markets (except Trannies) 'v-shape-recovery'ed back up to unchanged or better (as Europe closed and POMO ended) on the heels of an increasingly more beta-sensitive AUDJPY rampfest. Trannies never really recovered (3rd down day in a row) and Russell was less exuberant in its dead-cat-bounce but the Dow and S&P closed very modestly green. High-yield credit markets continue to widen - now at 10-week wides (up 35bps from tights) - notably divergent from stocks. Away from the shenanigans in stocks, the USD ended unchanged; Treasury yields were up 1-2bps; and gold closed very modestly lower. Oil slipped 0.5% to $101.60. VIX closed unch. Only the Nasdaq is green post MH17 Headlines on 7/17 and The Russell 2000 is -1.9% and Homebuilders -9% year-to-date.


AUDJPY ruled the day...


Notable divergences intraday among the major indices...


Since MH17 Headlines, only the Nasdaq is green...


Builders not having a great year...


High yield credit did not v-shape recover today...


Treasury yields rose modestly as stocks boucned... long-end closes up 1-2bps, short-end 2-3bps.


Gold and silver were oddly not monkeyhammered today...




Charts: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
HUGE_Gamma's picture

we demand a BONUS CHART!!!

Say What Again's picture

Can someone please tell me the exact time of day that POMO (and similar) activities END?

ebworthen's picture

That chart reminds me of my Precious Metals Miners...

gh0atrider's picture

Investing in insolvent government ponzis.  What could go wrong?

Dr. Engali's picture

Did you say bonus chart or bogus chart?

you enjoy myself's picture

i should have my head examined for not selling my puts once it was down 10 pts.  despite the last 5 years, my brain still has a hard time processing the fact that fleeting drops of 0.5% are all that's allowed.

Traderone's picture

Ye Gods man, down 10 pts and you didn't cash in? What exactly were you hoping for with this trade?

Rainman's picture

The little voice in my brain always says "don't be an idiot !.... you are being lied to " !

Dr. Engali's picture

This market is a lot like the "hot chick" you went home with after last call in your college days. It's fun to ride at the time, but you wake up with one hell of a hangover and you'll chew your arm off to escape with your life from the ugly beast you wake up lying next to.

i_call_you_my_base's picture

I disagree, it's not just that it's an ugly woman, it's a dude.

firewire888's picture

yeah everyone's programed to BTFD down over 10.   When does break it's going down 60 pts each day for 3 days.

Tsar Pointless's picture

You left a 'zero' off of the end of that number, 60.

thismarketisrigged's picture

isnt it amazing how every fucking day, no exaggerating, the market always fucking comes back off its lows, and then once it turns green or becomes flat, it just trades within a 20 pt range the rest of the day .


u would think that this market was fucking rigged and corrupt.


o ya, it fucking is, never fucking mind.


a day like today  ( not that we needed today to show us this ) is the reason why there will never be a major pullback or crash anytime soon, because they will not allow it.


if they need to sticksave every fucking 20 pt drop in the dow , u actually think they will allow days of 500 plus pt drops?

Squid Viscous's picture

every day there is a 10-15+ handle bounce in the SPX... thanks to ol' yeller

just have to time it right... or kind of right... or just fucking buy every day at 10 am, and double down at 10:30 if still red, if still red buy more at 11

Callz d Ballz's picture

It's efficient.


Must keep 401K's within range for maximum wealth effect.


For now...

disabledvet's picture

If the economy generates enough free cash flow it could actually do well if high yield gets annihilated here as the "shit" gets knocked out of commission and then the good credits with confident growth prospects can scoop up the "el cheapo" lame ducks at a discount...or just leave them to the vultures.

This is a market after all and "shit on a stick" might sell in the 80's and stagflation is sure won't sell in a raging bull market in quality equities and massive sovereign debt issuance.

In other words "if the war starts over there" the term "you gotta pay for that" will be the way forward.


Indeed the "command and control economy" of World War II seems severely lacking this go around.

You gotzed certain 'mericans with a veritable SHITLOAD of moullah right now.

Keltner Channel Surf's picture

Small caps traded rather textbook today, technically speaking, for those loving volatility envelopes (and who doesn't?).  One suspects the machines are itching to use Yellen & company's impenetrable tome on Wed to either lick the 20 or 50 DMAs, or have an impromptu sock hop in the basement (didn't think the Russell had a basement, always seemed more like a modern condo).  I'm sure Goldman has a night janitor in the Eccles building on staff to go through key wastebaskets tomorrow ...

Squid Viscous's picture

fuck your TA, assholes like you only contibute to this charade..."oh, time to buy the spx is at is bottom 15 divided by 5 times 60 minute keltner channel lower line!!", fuck off and die 

Keltner Channel Surf's picture

Sounds like Mr. Calamari may have shorted the bottom today, squirting thick black ink all over his Farrah Fawcett poster, just as “assholes” like me were covering our morning shorts.  Shame.  Stop whining and take the time to learn to trade, you spineless cephalopod.

Squid Viscous's picture

no i actually bought down near the low print, and took a nice profit on SPY calls and some other stuff, but i'm sure i missed alot of $$$ ... do you have a blog or a textbook that i can buy to surf the "keltner channel" to maximize my profits ... lol  

Keltner Channel Surf's picture

 The handle is a pun on ‘serf’ vs. ‘surf’, and I’m truly a servant of someone as brilliant as you who can, purely using fundamental analysis, get the exact low print on the S&P.  In fact, everyone knows volatility envelopes don’t work at all, especially on the Russell, the key is to look at the news and, if it’s bad, short at 10:15.  But, wait, you bought today . . .   strange fish …

SheepDog-One's picture

V-shaped green equities, all that's needed to keep the sheep calm for the slaughter.

TheRideNeverEnds's picture

because why not?


watch out though, I got long the yen with size today at the close via short USD/JPY therefore you can expect the yen to depreciate rapidly from here untill I get blown the fuck out of the position.