Market watchers are stunned, stunned we tell you, that we didn't bounce today after yesterday's 1-year record plunge in stocks. Whether AAPL led the market or the market led AAPL is irrelevant, there is one clear fact, everyone and their pet rabbit Clive is looking to reduce exposure to that anchor-like alpha-destroyer. Gold once again outperformed every other asset class today as it has seemingly reaffirmed since the election that "buying gold is just buying a put against the idiocy of the political cycle." [3] S&P 500 futures plunged into the close to end on their lows (-60 points from yesterday's highs); AAPL closed at its lows (-3.7% on the day - through its 55-week average); financials dropped further; Treasury yields plunged (30Y -16bps on the week); while the USD generally tracked sideways to higher; high-yield credit closed at its lowest price in over two months (don't tell Tom Lee). VIX compressed modestly (and steepened) as we suspect election hedges are lifted (and also AAPL overlays discarded).
Gold is soaring as Treasury yields, Oil, and Stocks plunge...(and the USD treads water limping higher)
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with AAPL down
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and where does the S&P 500 stand...
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Where to from here? S&P still ~90 points rich to Bonds...
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120 points rich to Goldman's year-end target...
and 200 points rich to a much broader basket of risk-assets calibrated earlier in the year...
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Meanwhile, European stocks are now outperforming US stocks...
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as a reminder - P/E valuation changes during QE2 and LTRO/Twist compared to the current move are almost perfect mirrors... will we follow 2011? or 2012?
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Charts: Bloomberg and Capital Context [11]
Bonus Chart: GRPN Group-Off! -12% after-hours on sales-staff cuts and reduced outlook...oops...
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amd here's NFLX - trading between $76 and $80 since Icahn's move... we suspect more than a few lined up under that...
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