Financials FUBAR As S&P/NASDAAPL Close Unch For The Month

Tyler Durden's picture

Oh the exuberance. CRAAPL led the NASDAQ down heavily today as its high-beta ebullience reverted back to 'normal' and the S&P 500 and NASDAQ are closing practically unchanged for the month of July. The Dow Industrials are down 0.4% but the Dow Transports are down 2.65% - near their lows of the month. Financials have been monkey-hammered as today's offer-a-thon dragged them dramatically lower (MS/BAC -13% for the month). A late-day OPEX-inspired activity burst dragged volume up from near year lows and likely inspired the surge lower in VIX into the close (even as stocks went sideways to lower) - but still ended up 0.75vols back above 16%. Treasuries end the week down 2-3bps at the long-end and 4-5bps at the short-end with a decent rally today. The USD is up a modest 0.25% on the week - thanks to notable weakness today in EURUSD (which broke its pattern of reverting today) though dispersion was broad with AUD stronger by 1.5% and EUR weaker by 0.75% on the week. Gold and Silver are practically unchanged on the week, Copper down around 1.5% and WTI up over 5% - but only WTI is up for the month. Cross asset class correlation picked up towards the end of the day as ES caught-down to broad risk asset's less sanguine view of the world. ES ended the week up around 7pts, VIX down around 0.5 vols with financials -2.25% and Energy +3%.

The major US equity indices are unch for the month...with the Trannies lagging badly...

but Treasuries are very significantly lower in yield...

as the major financials have been pummeled this month...

With some very considerable dispersion among the sectors this week...

and for the month...

and on the week, equities remain modest winners relative to the Friday close as the rest of the QE-sensitive assets converge lower...

Correlation rose notably (more systemic risk off flows) as ES converged lower to where broad risk assets were (please ignore the gap in the data - there was a data center error)...

But Oil was the big mover on the week (and month so far) especially compared to the rest of the economically sensitive commodities...

Charts: Bloomberg and Capital Context

Bonus Chart: While all eyes were focused on Kayak's IPO - which ended well off its highs, we note that Palo Alto Networks - while well above its IPO price - ended at the lows of the day, 15% off its highs of the day, oops!

Bonus Bonus Chart: The scary echo chart....another perfectly correlated failed retest of the latest swing high to continue the correlation with last year...

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Yen Cross's picture

 At least Tyler knows how to draw channels!


    Time to explore, more charts.

flacon's picture

Silver in the corsshairs of the apex of the wedge formation. That is the sound of inevitability. 

EvlTheCat's picture

But MomoTrader told me.............

EvlTheCat's picture

Man, I couldn't have timed that post any better!  LOL

RobotTrader's picture

Only a matter of time before a "rescue" is engineered for all the financials which are in trouble.


Nobody, I mean nobody, is going to let a trillion dollar bank like BAC fail or trade below $5 ever again.

That is another beauty of the "Bernanke Miracle".

The TBTF banks are even bigger now, which means Congress will be on their knees once again to the Fed begging for a bailout if JPM, Citibank, or Bank of America gets in trouble.

And if the politicians need money for the upcoming elections, well they better start granting some "favors" for Goldman Sachs.

Everybodys All American's picture

Are they going to save the Euro? Nope. Therefore button down the hatches homie.

francis_sawyer's picture

Channeling stocks. DOT. COM


U see people... what you do is to follow RT with his 'trades' that he makes every Friday when his mom gives him his allowance money... you BUY LOW... Then you SELL HIGH... Need me to repeat that?


EvlTheCat's picture

The funny thing is francis_sawyer he received -29 yesterday for his momo-fu, and today he is in positive territory for "telling it like it is".  My guess is that it is Friday flip day and I missed the memo.

no life's picture

I've never used a fucking apple, and never will... Piece of shit.

HelluvaEngineer's picture

I haven't owned one since the IIe/IIc days.  How I miss Logo.

Nobody For President's picture

Never had an apple, but had a Laser 128 - a IIc clone that was a fairly decent machine for its time.

magpie's picture

King Dollar taking a last stroll ? Or waving from, uh the iceberg to the Eurotitanic ?

Yen Cross's picture

AAPL is a bell-weather. Just like mfst was in the 90's.

   ROBO I'm done with knocking you down.  You know where the markets are going.   I sure hope your "call" list is long!


TahoeBilly2012's picture

The echo chart is the view from the bottom right between Whislter and Blackcomb. This is getting weird.

realtick's picture

Why do some charts have arrows and bubbles and others don't?


Is this chart supposed to be a joke?

sitenine's picture

Equities unchanged and banks down!? This news is outrageous! We need team players here FFS, someone is clearly not committing enough fraud.

RobotTrader's picture

Jamie Dimon stepping up and buying 500,000 shares of JPM.  Atta boy!!!  You 'da man!!


That's $17 million bucks!!!

Cdad's picture

Jamie Dimon stepping up and buying 500,000 shares of JPM.

...after selling $13 million in JPM preferred shares.

sitenine's picture

+1 Cdad

Buy/Sell history:

And the SEC FORM 4:

This fucker is taking too much of our money into his TBTF salary, and I'm mad as hell about it.

Yen Cross's picture

 That m'/a crossover was a buy sell signal. With out opening the chart I'm guessing 50/200 cross over. The chart is daily!

  a 10/20 WEIGHTED. CROSSOVER Confirms the oscillators.

FubarNation's picture

Did someone say Fubar?

Grand Supercycle's picture

As mentioned numerous times, market intervention has only postponed the inevitable.

Despite short and medium term market vacillation - the following remains a constant :

>> USDX monthly indicators [ie big picture] continue to warn of significant long term USD upside. (thus EURUSD & AUDUSD etc bearish)

>> SPX monthly indicators [ie big picture] continue to warn of significant long term downside for equities which will be worse than 2008.