While the close was not exactly bullish (just look at HY credit, volatility, and homebuilders), the only thing that matters is - Dow 14,000. The highest close since 10/12/2007. Since that time, 10Y Treasury yields have dropped from 4.68% to today's 2.03% - the first close above 2.00% since early April 2012. Risk-assets spent the day catching up to equity's early lead and recoupled into the close. Some modest after-hours weakness to the shine off an otherwise exuberant day as Treasuries snapped lower in yield on NFP and spent the rest of the day surging higher in yield to end the week +6 to 8bps. Silver gained 2% on the week - beating stocks, as the USD dropped 0.7% (almost equal to Gold's gain). With stocks unch from Oct 07, perhaps it is worth reflecting on Gas prices being up 58% since then... but that would spoil the party...
A little context for today's exuberance - cross-asset class performance from 10/12/2007...Bonds +28.5%, Stocks Unch.
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Since October 2007...'wealth' has changed...
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Gold
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Gasoline...
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and the rest...
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and today...
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and the sectors...(homebuilders ugly but Utes winning?)
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Now that was a crazy day in Treasuries!!!
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Stocks led the risk-off move as the rest of risk-assets in general did not play along initially - but mysteriously perfectly recoupled into the close...
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Gold and Silver had a good week - outperforming stocks - as the USD lost 0.7%...
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Source: Bloomberg and Capital Context
Capital Context [14] (@CapitalContext [15]) LLC is the leader in integrating credit-market data to actively trade equity markets. From our world-renowned intraday 'CONTEXT' and 'SPY Arb' models to the daily long-short equity portfolio, sector-weight updates and tactical asset-allocation strategies, Capital Context offers sophisticated hedge-fund strategies to the active trading community.