Shitty macro data, check; VIX up, check; Bond yields flat to lower, check; Oil down, check; New Record Highs in the S&P 500 - of course. AAPL was up again as we suspect the world of levered momo players are greatly rotating back into this old hedge fund hotel once again (and lifting the indices with them). Trannies closed red for the 2nd day in a row (first time in 3 weeks). Once again the opening dip was BTFATH back up on no volume thanks to USDJPY's ignition and once Europe closed, stocks went sideways. Copper was clubbed on warehousing concerns. With Draghi about to unveil his holy grail tomorrow, the EUR was flat but protection in volatility was well bid in FX and equity markets. Oil prices (growth?) tumbled after chatter of Ukraine-Russia talks. Gold and silver closed flat as did Treasuries - after catching up to equities from last week. Credit markets faded despite the equity exuberance today. It seems simply that no one is willing to sell anything ahead of tomorrow's grand unveiling (but derivatives protection - away from the simple gaze of the mainstream media - is very active).
Whocouldanode this would happen?
Equity Algos Await Seasonally Adjusted Data Dump Before Today's Buying Spree http://t.co/hmhjPm2LZn [8]
— zerohedge (@zerohedge) June 4, 2014 [9]
Quite an oddly noisy week in the S&P with no volume... looks totally human and normal, right?
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Today was the opening dip (on dismal data) ripped higher and once Europe closed, we went flat to lower...
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The bid for protection has been aggressive in the last week as AAPL has surged and lifted stock indices...
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Treasury yields closed very modestly higher today - having caught up to equities from last week...
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But bonds were very quiet today...
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Credit markets are fading today...
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Copper plunged on China macro and the warehouse probe, oil appeared to drop on Ukraine-Russia news... gold and silver flat
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It seems while everyone and their mum is short EUR into tomorrow, the bid for protection in that FX pair exploded today ahead of Draghi...
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So while stocks are up, the EUR is down, and all is well in the world... equity implied vol (protection ) is well bid, credit protection is well bid, and FX protection is well bid
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Charts: Bloomberg
Bonus Chart: The Bears are back in hibernation as we reach back up to peak bullishness once again...
Jeebus pic.twitter.com/9usr0GGkab [19]
— Not Jim Cramer (@Not_Jim_Cramer) June 4, 2014 [20]