Despite an initial attempt to rally after the terrible news out of Ukraine hit, stocks were unable to mount any serious BTFD as uncertainty spread. Despite Bullard's best efforts, bond yields crashed lower (over 7bps today) with 10Y at 2.45% near the lowest close in 13 months. Gold prices jumped over $20 (even as the USD Index flatlined - though JPY strengthened notably as risk-off set in). VIX exploded 3.7 vols (its biggest swing - 45% - since Aug 2011). Equity markets cratered into the close as Israel ground invasion news (A White House Lockdown) added to the concerns leaving all US markets red post-payrolls and red post-Yellen. The S&P 500 dropped 1.18% - its biggest drop in 3 months. The Russell 2000 is now down 2.5% year-to-date.
The S&P dropped more than 1% for the first time in over 3 months...
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Fun-Durr-Mentals...
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The Day in VIX and S&P 500...
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Credit markets getting very nervous...
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Post Payrolls...
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Post Yellen...
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Year-to-date...
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A gentle reminder of how anxious bonds and JPY carry has been... stocks starting to catch down as repo fails disallow the BTFD move...
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VIX exploded...
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Despite Bullard's best efforts to explain why bonds are in a bubble.. and BofA's Macneil Curry:
MacNeill Curry says 10Y won't drop below 2.40%. Prepare for the 10Y to drop below 2.40%
— zerohedge (@zerohedge) July 17, 2014 [17]
Bond yields collapsed..
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Gold ansd silver spiked on the MH17 news and oil surged - adding to gains as Israel new hit..
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Summing it all up:
We're gonna need moar buybacks...
CNBC thoughtfully opined "This is the teflon stock market... nothing has hurt it in the past... maybe this is a buying opportunity"
Charts: Bloomberg
Bonus Chart: Russell 2000 broke 15 year trendline against S&P 500
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Bonus Bonus Chart: VIX's 14th biggest gain in history...
Today made the list pic.twitter.com/01QEcMtQQP [21]
— Stalingrad & Poorski (@Stalingrad_Poor) July 17, 2014 [22]
