For the 4th day this week new highs, new lows, advancers and decliners flashed an angst-prone market and triggered a Hindenburg Omen. A glimpse at Treasuries close-to-close from Friday and one might think it was a quiet week (though 30Y rallied 5bps the rest of the curve ended only modestly lower in yield) but in every other asset-class, the 'Taper' talk sent levered momo running for the exits... with JPY's 2nd strongest week in 4 years the main carry-unwind driver.
Treasuries ended the week marginally lower in yields (even as it rallied handsomely from Tuesday high yields)...
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BUT
- AUD Strengthened the most against the USD in 8 months
- JPY Strengthened the most against the USD in 2 months (and second most in 4 years)
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- S&P had 2nd worst week of the year (after the cash close, futures kept sliding lower...)
- Dow had 3rd worst week of the year
- Dow Transports had second worst week in 2013
- Homebuilders had second worst week in 14 months
- Silver had the 3rd best week of the year
- Copper had best week in 11 months
4th Hindenburg Omen in 5 days...
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and the sketchiness is clear...
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FX markets were the big movers...
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but commodities were very active also...
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More importanly, given the JPY strength today, many asked why we did not selloff more... it seems that once again there was some squeeze of the shorts that managed to hold stocks up... Just as we saw on Monday (which was then followed Tuesday with a big dump)...
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Charts: Bloomberg
Bonus Chart: USDJPY vs Nikkei 225...
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