Despite the double-POMO, US stocks fell with the highest volume in 2 weeks today. The S&P 500 and EURJPY were joined at the hip for entire day exchanging the leadership role with each momentum ignition rally faded at VWAP. No deer today but with VIX's move and stocks down 3-in-a-row, some are starting to worry (which with a 1.4% from the highs drop in the S&P is kinda pathetic). Treasuries rallied (but remain 2-4bps higher on the week) mirroring the move in the USD (which sold off back to unchanged on the week as EUR strengthened). Despite an early blip, gold flatlined but silver slid lower as WTI crude surged further (closing +3.7% on the week back over $96). VIX closed off its intraday highs but at 2-month highs as it seems hedgers unwound into underlying sales.
Only one thing matters...
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and volume was very large today - highest in 2 weeks... (notice how EURJPY was jerked higher to enable a VWAP close at cash - and now futures are fading again)
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Homebuilders and financials have been hammered in the last few days...
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WTI is surging (catching up to Brent - not good for gas prices), gold flatlined as silver slid...
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FX market roundtripped with the USD ending unch of the week...
and VIX remains disconnected (as we suspect weakness in stocks today was unwinding hedges and reducing underlying exposure in stocks)...
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and credit remains unimpressed...
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Charts: Bloomberg