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Commodities Recover As AAPL Saves The Tech Sector
The only sector of the S&P 500 that was not red today (and for that matter the week) is Tech as AAPL managed another wonderful 1.45% rally today (up 5.6% on the week - it's best performance in 3 weeks and notably AAPL hasn't had a down week since 1/13 -0.6%). As SNL might say, "we need more parabola". Volume was average (for equities and futures) today but bigger blocks came through to sell into the close ahead of the long weekend and tomorrow's early excitement. Financials once again struggled and along with Energy are the worst of the week but it is the majors (in particular Morgan Stanley) that has been hammered this week as MS is -8.2% from Europe's close on Monday with the rest of the TBTFs down around 6% - finally catching up to credit's weakness. Equities closed down marginally but sold off in futures after the close - back below VWAP - having dropped all the way to reconnect with IG and HY credit's less ebullient perspective this week (before credit extended its losses to its widest in three months!). Treasuries managed to entirely recover their post-FOMC spike closing near the low yields of the day/week with the 7Y belly outperforming on the week down around 5bps (with 30Y -1bps on the week). Commodities halted their descent (much to the chagrin of media commentators it seems) as Oil outperformed on the day (and into the green for the week) over $103. Gold and Silver are still underperforming the USD's gains on the week (up 1.4%) led by EUR and CHF weakness. FX chatter was dominated by the spike-save in EURCHF (taking out Goldman's stops) and the mirror CAD strength JPY weakness relative to the USD. It seems EURUSD has become relevant again as it heads back towards 1.30 the figure (3 months lows). VIX went briefly red around the European close and broke 17% before closing marginally higher on the day as the term structure steepened a little more once again.
AAPL's rampage remains intact helping avoid a red week for the Tech sector as financials and energy were the biggest losers of the week (and oddly along with Utilities for the day)...
and the major financials are still getting crushed - especially Morgan Stanley (as they pull back to credit's reality)...
But credit markets have now slid to almost three-month wides with high-yield spreads back to 1/20 wides as AAPL once again exerts its influence, diverging broad equity indices from reality...
Treasuries have recovered all of their post-FOMC losses (basically unch from that morning) as the 7Y belly has outperformed on the week and 2Y underperformed - dragging 2s10s30s (the popular carry trade) to one-month lows...
Commodities staged a modest comeback today - taking WTI into the green for the week - but Gold and Silver remain underperformers relative to the USD on the week...
FX markets, spooked early on by the test of Goldman's precious 1.20 stop in EURCHF, drifted USD stronger until the US open then trod water for the rest of the day - leaving the USD up 1.4% on the week (its strongest week since the first week of the year!)...
All-in-all, another weak day with volume dominating the selloffs and trickle back above VWAP. The impact that AAPL is having on broad equity indices and their now egregious disconnect from broad risk assets is becoming farcical. One can only wonder if and when a rebalancing occurs just what a hit the indices will take? Weakness after-hours in S&P futures suggests a little more anxiety into the weekend - but nothing like what was seen in Credit, Treasury, and FX markets from the perspective of risk-off.
Charts: Bloomberg
Bonus Chart: S&P 500 vs NYSE net new highs - divergence (another AAPL impact)...
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An APPL a day!
Apple has become insanely over valued.
http://ericsprott.blogspot.ca/
Actually except for gold & silver, it may be the only thing not overvalued right now.
Excuse me.....is that a worm in your AAPL?
DRUDGEREPORT
Half a million APPLE computers hit with 'Flashback Trojan'...
Looks like the ECB and FED have finally synced up their printing - market down ro flat - oil and gold higher.
The BRIICS (second "I" is Iran) are looking to form their own central bank (soon as 2015) - why - cause US military interventions and FED/ECB prints have destroyed the markets. BRIICS figure that cutting off US line of credit will end the Team America (Jeezuz f*cking titty Xhrist) World Police Rackets, Inc. (f*ck yeah!).
BRIICS currency to follow? (Absolutely - maybe a second "S" for Syria?),
Bout the Apples - did the article distinguish as whether or not the exploited MACs also had an MS "Windows" shell installed "underneath" the Apple OS so the user could install and run MS applications? MS execs have already fessed up they included back doors (since XP SP 1) and share the keys with the gov and corps. A lot of the big brick and mortars are still running XP - so why is MS stock up - oh yeah - the 'print' - forgot.
Bond market crashes in 6 months - right around 3Q witching - the final bubble pop will dispose the republic - welcome to Banan World!
did the article distinguish as whether or not the exploited MACs also had an MS "Windows" shell installed "underneath" the Apple OS so the user could install and run MS applications?
Here...just breath into ths paperbag. I'm sure everything will be fine.
AAPL eating into NFLX?
future is internet TV. can apple beat google+samsung ?
... and ,,, with portable wifi ISPs ... venture beyond consuming and be a 'hot spot' media mogul.
Lecting from a Larry Niven, or was it Delany's 'Dahlgren' sci-fi of a micro scene from the future - the narrator was able to spot who had pockets and who were muggles because the pockets never used mobil devices.
And then there was Kurt's Blessing of Mrs Rosewater dicting a bar scene with patrons watching a TV with no sound were betting what song a band was playing based only on what they saw ,,, and then there ...
Here...just breath into ths paperbag. I'm sure everything will be fine.
... whew ... thanks ... feeling better already ...
obligatory SNL more cowbell clip: http://www.youtube.com/watch?v=z0uvVZg4Tw4
I want AAPL to die. This farce of a market would be as dead as Elvis.
It will all play out to script. Just slower than I thought.
These are the best posts on ZH. Thanks and keep 'em coming Mr. Durden.
Agreed! This constant monitorinig of CONTEXT is wildly helpful.
Hahahahahahaha - can you say TULIPS??????? Hmmm, me thinks AAPL one day tanks as did the end of the tulip bubble...
Meanwhile gold looks like its in a channel down to $1509.
Seorse is annoyed.
As much as I hate to say it, I so regret not being onboard for this run, I dabbled a bit way way back 12-13 mths ago....in the 300's..its almost unbelievable
In Other news,
A peak @ the Fed's masterplan. {a must read}
http://ftalphaville.ft.com/blog/2012/04/04/949241/why-qe-is-being-mis-sold/
Wow, through the fucking looking glass indeed!
From the article, I can't tell if Kaminska agress with the premise or not.
All I know, is allowing the criminals free reign to print even more ends only in disaster.
If something requires "Jedi Mind Tricks" in order to be effective, then we don't need it in the first place.
A $600 Billion gadget company kinda sums up what USA is all about, all looks very little substance
Gold/silver producers are taking a beating. The mass of consumers favor their iPad, their daily bread Latte and a visit to Chipotle Mexican Grill over owning any gold or silver bullion.
For the price of one new iPad the consumer could have bought about 30 oz silver. The majority of consumers are stupid and no matter how many warnings are being issued, the masses will wake up one morning and not being able to find any new information on their beloved iPads. Then they will try and buy food only to find that the shelves are empty. ATMs are frozen and banks are closed due to extended holidays. In their desperation and only after eating their dog, the proud owner of the iPad will try to barter the iPad at the pawn shop in hopes to get some money for Latte bread. The pawn shop is stacked to the ceiling with iPads and the desperate consumer can only try and eat the toy or face starvation.
A bit over the top maybe. Seriously, though what does the performance of the consumer goods companies vs. the performance of gold / silver miners tell us about who we are as society and where our priorities lie.
The shitstorm is brewing.
This won't happen. No way. Because a new Apple App named iFood will avoid starvation for every iPad owner. Got yours?
Perhaps Apple can release a silver & gold ipad?
bonus chart, BiCheZ!
++++++{+}yler!
I am sure Reggie planned on this huge runnup.
Future Apple PR Statement: Our OS will never receive a Micro$hite virus. Today's operating system is impervious to any private data mining packet loss. BTW, we just launched another 15% increase in new iApps to serve our Muppet customers. Please take advantage of our limited $0.99 download offers.
Apple releases Java update to protect Macs against Flashback trojan
It’s funny, my PlayBook closes out of a Java website deemed suspect. LOL. Download the new iAssclowns App to fix your iPhone or iPad.