It seems blood on Iraq streets and infringements near oil reserves is enough to pop crude oil price, break the airlines bubble, stall the Trannies unstoppable surge, and spark volume selling through the US equity markets. We will be reassured that this is a buying opportunity and that 'nothing fundamental has changed' and the US is 'the cleanest dirty shirt' but when the Chinese are tamping down carry with flip-flopping CNY fixes, the ECB has shot his mini-bazooka, and we know the Fed ain't un-tapering anytime soon (as they are fearsome of complacency and financial fragility), it makes one wonder if the corporate buyback machine can overwhelm the geopolitical-risk selling pressure of the rest of the world. Trannies dropped to their worst day in 4 months as all major US equities reversed any Draghi gains. Treasuries were well bid (-6bps and lower in yield on the week) as gold also benefited from safe haven status rising up to $1275. Copper slipped further south. Oil was the big news, spiking up to $106.70 (9 month highs). It's not Tuesday - what did you expect? (and remember there are no Friday POMOs in June).
The Draghi Dream is over for Trannies, and Dow and just alive for the S&P (now let's see AAPL hold the Nasdaq up just one more day)...
[14]
It's not Tuesday for stocks...
[15]
or bonds...
[16]
As Oil surged and Transports (led by Airlines) tumbled...
[17]
Commodities were in the news as Palladium rolled over gold and silver bid on safety and oil surged...and copper slapped
[18]
The USD slipped...
[19]
Time for more random Japanese headlines because we lost 102 USDJPY and that means the Nikkei is down...
[20]
Charts: Bloomberg
Bonus Chart: Something spooky this way comes...
Nothing's perfect, but full moons have nailed some decent tops and bottoms in VIX. Full moon is tonight. pic.twitter.com/ituOnuXYow [21]
— Not Jim Cramer (@Not_Jim_Cramer) June 12, 2014 [22]
