WTI Crude plunged another 3.75% to as low as $74.06 today - the lowest since Sept 2010 and dropping at the fastest rate of collapse since Lehman. Airlines popped and Energy stocks dropped 2.7% (now worst sector of the year) but Small Caps were the worst performing major index of the day (turning first around 1030ET and dropping most in over 3 weeks). The S&P tested back into the red for the week but was VWAP-rescued twice. AAPL once again bid saved the Nasdaq. Treasury yields slid lower all day (down 2-3bps across the complex) but remain up 4-5bps on the week. The USD weakened very marginally (still up 0.25% on the week) led by EUR strength. Gold and silver were flat but copper tumbled back below $300 - its lowest close in a month (near lowest close since Jul 2010). HY Credit diverged bearishly this afternoon as stocks ramped to VWAP. VIX rose for the 3rd day in a row, back over 14. Dow record close, Russell biggest drop in 3 weeks.
It was a weak day in stocks... so what do u think happened to trading volume... But of course, it wouldn't be the US equity market without a late-day panic buying algo surge to VWAP??!!
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But today was all about Oil...
WTI at over 4 year lows and falling at the fastest pace since Lehman...
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And Lowest seasonal gas price since 2010...
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The Energy sector is easily the worst performing sector of the year (and note EVERYTHING else ignoring the dip)
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Don't forget - the collapse in oil prices is due to over-supply and NOT (repeat not) due to a collapse in global demand (which of course are merely 2 sides of the same coin)
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On the day, Small Caps underperformed...
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And the S&P tested red for the week intrday... and bounced...
VIX has decoupled for 3 days and it appears stocks are catching down...
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Treasuries rallied today but yields remain 4-5bps higher on the week...
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HY credit decoupled from stocks yesterday and remained there...
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FX markets were relatively quiet today with EUR strength the main driver (as it seems EURUSD and TSYs are flip-flopping each day)
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Gold and Silver were relatively quiet today as Copper and Oil got plugged...
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Close up, oil down from over $78 to just above $74...
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and Copper smashed from over $3.05 to $2.98...
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Charts: Bloomberg
Bonus Chart: It appears Airlines decided that once Bullard had spoken low oil prices can only mean good things for the global economic wealth of travelers... +45% in 3 weeks?
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Bonus Bonus Chart: Just when you thought TWTR was fixed with Noto's dreams yesterday.. all the gains are eviscerated today...
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Bonus Bonus Bonus Chart: Today marked the 20th day in a row that the S&P has closed above its 5-day moving average. MKM's Jonathan Krinsky notes this length of streak has only happened 3 other times in the past 20 years.. and each time the 5DMA was broken, it was followed by a sell off (2/14/96 -2.3% in 2 weeks, 7/2198 -14.66% in 6 weeks, 12/3/96 -2.97% in 2 weeks)
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