Equity markets traded in an extremely narrow range once again today with NYSE volumes dreadfully low. The USD, Treasury yields, and the S&P 500 in general tracked each other well all day. Gold swung from underperformance to outperformance and stocks lifted into the close to try and catch-up - as well as manage a green close - they failed (except the Dow - with CAT and MCD accounting for 14 of the 11.5 point gain on the day). AAPL closed above $702 (of course it did, silly) but NASDAQ was unable to make hay off of that. VIX remained under pressure and stocks reverted to catch down to it. The USD strength (+0.5% on the week) was ignored by Gold ($1770 - unch on the week) and Silver ($34.75) which had solid days but Oil ($95.50) kept sliding - below yesterday's spike lows. JPY's risk-on sell-off on BoJ news was also shrugged off by the equity market. With Staples and Healthcare outperforming and Energy and Financials laggards, as we noted earlier, the sectors post-Fed have converged rather dramatically - as TSYs have retraced much of the post-Fed move.
Gold has been the wildest mover this week (aside from Oil) among the major QE asset classes - which have generally trended lower in risk-off mode...
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Treasuries have rallied back down and covered most of the FOMC-day spike higher yield moves. The long-bond remains 8bps or so higher in yield still - as inflation breakevens continue to hold gains (but are leaking back with stocks)...
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It seems the market is making up its mind on what impact QE will have - Utilities remain the underperformers (no need for safety now Ben has our back); Consumer (Staples and Discretionary) have been segregated lower - it seems there is little confidence in their ability to benefit from Ben's benevolence; but the rest are all anchored together hoping for some systemic lift...
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Commodities are generally trending higher (which is odd given USD's strength) but Oil is bucking that trend on SPR rumors - what the government giveth they can taketh away we pre-suppose...
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as the S&P 500 drifts lower to catch down to VIX...
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Charts: Bloomberg
Bonus Chart: There were some epic Flash Smashes today in RDC, NOV, ESV, TDW, CAM - this is becoming absolutely ridiculous...look at the volume!!!!
RDC as an example...
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and NOV...
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