IBM weighed on the Dow - much to the chagrin of the mainstream media - but if they'd replaced IBM with AAPL things would have been just as ugly (if not worse). The tech-darling dumped after trying to ramp in the last hour and once again failing at VWAP on heavy volume as the big boys exited. S&P futures auctioned up to QEtc. spike levels and were unable to get through but still had a solid day. Interestingly, while today was an 'uncorrelated' day across risk assets, the rise in Treasury yields, rise in stocks, drop in Gold, and drop in USD has brought them all back together in sync post-QEtc. - from here who knows? Credit markets tracked equities generally - but HYG and LQD saw major volume spikes early on this morning (looked like HYG sells and LQD buys). VIX limped sideways most of the day - falling 0.14vols to 15.08% (though for the year remains on average at a high premium to realized). The USD is down 0.85% for the week with EUR back above 1.31 and only JPY weaker vs USD among the majors.
S&P futures stalled at the Bernanke spike high - and up-trend line from the May lows - with some decent size coming through at the close with no follow-through on price movement...
This continues a similar pattern... as market participants test up and down to find buyers and sellers...
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and Gold, Stocks, Treasury Yields, and the USD are all back in sync post QEtc...
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LQD and HYG saw very large volume spikes - and the closes of the day ended very close to where this volume erupted...
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Treasuries are tumbling this week with the entire 7Y-plus segment higher in yield by 15-16bps...
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AAPL's ramp must be clear to people now - the algos lift the price to enable the big boys out near VWAP - once you grasp this fact, maybe you will begin to understand the auction process of the exchange of stocks and why we rise and fall...
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Charts: Bloomberg
Bonus Chart: VIX risk premium over realized - annual average remains high. Realized vol has been crushed...
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Bonus Bonus Chart: Mind-blowing Deus Ex Machina - US Equities, European Equities, And Gold ALL Up ~11.8% YTD...
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