It appears the excitment of US midterm election sparked a "sell-everything-American" strategy today as stocks, bonds, WTI crude, the dollar, Treasuries, and credit all sold off to a lesser or greater amount. Trannies started off liking weak oil prices but faded as WTI could not bounce off multi-year lows but stocks were jolted lower (before v-shape recovering to VWAP) by Mutiny at the ECB (and desk chatter that - as we have warned - QE is not coming). The decouplings continue as high yield presses to 2-week lows and Nikkei futures diverge from USDJPY. The dollar weakened back to unch on the week after Draghi but commodities saw no gains from that as gold, silver, and copper slipped. WTI dropped to as low as $75.85 at 3-year lows. VIX - helped by numeous CBOE 'breaks' today - jerked back below 15 (after trading above 16 briefly).
On the day, Trannies and The Dow ended just green as broader indices closed red unable to recover Draghi's Mutiny drop...
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and from yesterday's Saudi headlines...
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VIX was jerked lower after CBOE broke a few times and Draghi's slam down sparked ucnertainty
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Credit markets are flashing red again...
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Either 30Y yields are 30bps rich or the S&P is 100 points expensive... you decide
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On the day, Treasuries close mixed 30Y -2bps, 5Y +1bps with the flattening curve continuing oin the week...
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The dollar lost notable ground on the day as EUR strengthened post Draghi...
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Commodities slipped lower despite the USD weakness with oil the biggest loser once again...
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Crude appears at a key support level here
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Charts: Bloomberg
Bonus Chart: NKY and USDJPy decoupled...
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