Stocks ended the day at the highs of the day with small gains as the internal anxiety implied (highs vs lows, adv vs dec) by the re-appearance of the Hindenburg Omen battled (Icahn vs Ackman-like) with the one-way-street predictability of a Hilsenrath-inspired 330RAMP Capital appearance. Hilsy's "no July Taper" un-surprise-note added 7 points to the S&P lifting it comfortably green (and knocked 5bps off Treasury yields).
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Trannies bounced hard after dropping to unchanged from the 6/19 FOMC levels (+1.4% from the lows) and along with the Dow ended the day practically unchanged.
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Funded by yet another dash-for-trash ramp the 'most-shorted' squeeze-fest...
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The Russell just kept on rising (+1%) as stocks ended the day at their highs. Despite the volatility (and close-to-close stability) in stocks, FX markets were the main movers today (and high-yield bonds) as EURUSD pushed back up to pre-FOMC 'Taper' levels from 6/19.
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This USD weakness weighed across all the majors with JPY back under 99 and AUD well bid. Cross-asset-class correlations picked up as the day wore on.
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Homebuilders continue their two-day tumble - but were ramped and rescued with the Hilsy crap...
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High-yield credit (bonds not CDS) had a second day of weakness (worst run in a month) before being rescued...
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and Treasuries stabilized in a narrow range (steepening modestly) before ripping lower in yields on Hilsenramble...
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Another day of good-looking headline data (with weakness underlying) provided more angst in the good-is-bad meme and high-beta underperformed as a new Hindenburg Omen appeared.
We last saw The Hindenburg Omen appear on 6/19 (FOMC day) [13] and stocks dropped notably.
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Today's re-appearance did not have the same catalyzing impact yet but we will be keeping an eye on it.
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Charts: Bloomberg