US equity markets were off to the races when stocks opened and Yellen began to speak but the late-day ugliness was written on the wall by a total lack of support from either volume or any other risk-market. The S&P ramped up to last Friday's spike highs, Zero Hedge reminded traders that Biotech P/Es were double what they expected, and the 30Y auction tailed ugly was enough - with a dearth of news (aside from downplayed escalations in Ukraine) stocks dumped and played catch down with JPY (weakness) and Bond (strength). EUR weakness (from Draghi Jawboning) provided the impetus for USD strength but leaves the USD unch on the week. Considerable divergence in bonds today (30Y +3bps, 5Y -3bps) means the curve is steepening modestly. VIX was running stocks today and we slammed back under 13 briefly and closer higher on the day. Ugly day for high beta stocks with the Russell near 6mo lows (and the Dow is back in the red for 2014)
The early short squeeze failed quickly...
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The Russell 2000 had another ugly day and despite the best efforts at a ramp is now down 10% from its highs in "correction" territory and trading near 6-month lows...
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Another day, another dump and pump... but this time it ended badly...
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Looks like the Biotechs didn;t like the trth about their risk...
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As stocks pumped away from USDJPY and then caught back down...
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And the same with bond yields (though the spike at the auction was fasinating)... look how it perfectly recoupled with stocks!
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Momos pumped and dumped again... not pretty
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Still don't believe it was Tarullo! Don't fight the Fed!!!
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VIX was in charge...
FX markst were volatile on the back of Draghi's jawboning promises - but leaves the USD unch on the week...
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Treasuries steepened on the day with the ugly 30Y auction dragging it +3bps on the day (and 6 on the week)...
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Commodities were mixed with gold flat, oil and silver down and copper up...
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Charts: Bloomberg
Bonus Chart: The Nikkei 225 is trading at its lowest relative to the Dow in 16 months....
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Bonus Bonus Chart: "Costs"
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