On a below average volume day, there were three intriguing divergences across asset classes today. Thanks to CVX (and a few others including MSFT) the megacaps of the Dow Industrials lurched to new record highs as the Transports dropped their most in a month and the momo names (led by TSLA) took high-beta NDX and RUT down on the day. Another divergence was oil (which surged notably) and copper (which was pummeled) as gold and silver limped higher (on weaker USD ahead of tomorrow's rumored 'no cut' ECB meeting). The last notable divergence was in the Treasury complex where the long-bond continues to push higher in yield while 'forward-guidance' belief is dragging the front-end lower in yield (5s30s now 10bps steeper on the week).
Dow Industrials hold most of their gains to close at new record highs... but Trannies (worst day in a month) and Nasdaq (TSLA) stumbled... chatter is that the big tech momos were sold to make room for TWTR - not so sure...
[5]
In Treasury land, the curve is steepening rather notably since Goldman's Taper/forward-guidance/threshold-adjustment note...
[6]
In commodities, the divergence between copper (ungrowth) and oil (growth/flation) was notable - as gold/silver limped higher...
[7]
The short squeeze of the "most shorted" names into last night's TSLA earninsg appears to have imploded and today saw "most shorted" names dropped the most in a month...
[8]
Note - only 1 of 16 IPOs rose on the day today...
Charts: Bloomberg