Despite a Bullard-bullshit-driven rampalicious surge in the last 36 hours, this is the first weekly close below the 200DMA for the S&P 500 in 2 years and longest losing streak since August 2011. Today was the best day of the year for the Dow Industrials and 4th up-day in a row for the Transports (which ended the week up 3%) as the major indices saw significant divergence on the week. The USDollar closed lower for the 2nd week in a row with EUR strength the main driver. Treasury yields ended the week remarkably stable (30Y -3bps, 5Y -11bps) up 30-40bps above intraday lows on Wednesday. Despite USD weakness, only gold managed gains in the commodity complex. Oil bounced off $80 but ended the week down 3.2% (around $82). VIX was slammed lower at the open today, closing -3 at 22 (+1 on the week).
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Before we begin...
Friday Humor: 1)Yellen talks Inequality and Opportunity 2)Obama hires a Ebola Czar that isn't a doctor 3)Vice President's son is doing coke
— Stalingrad & Poorski (@Stalingrad_Poor) October 17, 2014 [3]
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Umm Small Caps today!!
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Quite a divergence in indices this week - as favored shorts were rip-squeezed sending Trannies and Small Caps surging...
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Financiasls still underperformed on the week as homebuilders (another favored "most short") ripped.
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As everything took off after Bullard's QE4 comments (and was helped by Coeure)
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VIX was jammed lower at the open today (likely reflecting ECB's Coeure's QE comments)...
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Treasuries were insane this week - what can only be called a total pukefest on Wednesday on record volumes saw bond yields rip back higher in the last 2 days to close 3-10bps lower on the week..
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The USDollar closed down 0.7% (2nd week in a row) with CAD weakness ofset by EUR strength...
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Despite USD weakness, only gold managed gains on the week (2nd up week in a row - first time since July). Oil bounced but still ended notably lower on the week
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WTI bounced perfectly off $80 as, perhaps, The Saudis got a tap on the shoulder that they were killing US Shale. 3rd week down in a row...
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Charts: Bloomberg
Bonus Chart: Seems like The Hindenberg Omen worked this time? (broken clock syndrome? or world without a Fed reverting to natural reactions?)
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