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...
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but Treasuries are very significantly lower in yield...
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as the major financials have been pummeled this month...
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With some very considerable dispersion among the sectors this week...
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and for the month...
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and on the week, equities remain modest winners relative to the Friday close as the rest of the QE-sensitive assets converge lower...
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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)...
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But Oil was the big mover on the week (and month so far) especially compared to the rest of the economically sensitive commodities...
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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!
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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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