Treasuries closed at their lowest yield of the year - around 1.81% - and the Dow ended down triple-digits as the S&P saw its biggest down day in six weeks. Volume was 25% above average. The rally's leaders were smashed - Homebuilders suffered the most on the day - now down 4% post Cyprus (along with Materials) but it is Financials that have been slayed post CCAR. The big TBTFs (MS and Citi worst) are down 10% from pre-Cyprus levels. The Dow remains magically green post-Cyprus but the rest of the major indices are down (with Trannies leading the drop). VIX popped back above 14% but stocks are catching down to it. JPY strengthened from early in the US day - giving back all the weakness that the BoJ jawboned overnight and commodities were sold across the board (even as the USD did not move greatly) suggesting more liquidation-like moves. A late-day VWAP-reversion attempt (using HYG and EURJPY) failed which suggests there is real selling-pressure (something we have not seen in recent declines).
A busy day for Stocks...
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As the great rotation isn't...
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as the 10Y Yield closed at its lowest of 2013...
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with all S&P sectors but Utilities, Staples, and Healthcare red post-Cyprus (and they are fadinfg fast)..
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as Homebuilder suffer their biggest 3-day decline in 10 months on heavy volume...
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As Financials have been crushed since Cyprus...
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and while the USD didn't move dramatically... (JPY overnight weakness was bought back in a hrry as stocks slipped)
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Commodities slipped quite dramatically as US equities lost ground...
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In general risk-assets (proxied by Capital Context's CONTEXT model [12] below) and stocks were increasingly correlated as the decline progressed today...
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Surely it's not this easy (again)?
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Charts: Bloomberg and Capital Context
Bonus Chart: All the time Copper was rising with stocks we were endlessly told of its 'confirming' the strength of the global economy [15] but now that it is retreating in ahurry, it is purely technical and simply an over-supply thing... hhmm...
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