Some very significant volatility intraday today. The Dow Transports lost around 2.7% today - the most since early January - as Airlines slipped (though held half of Friday's panic-buying gains). The Dow outperformed - but closed red - thanks to strength in Chevron and Exxon (adding 35 Dow points alone). All major US equity indices are red from pre-Thanksgiving's meltup exuberant close with Trannies and Small Caps worst. Momo names were hit, as was AAPL. All of this was driven, it appears, by a somewhat staggering (dead cat or not) bounce in commodity markets off overnight flush lows. Gold and silver screamed higher and oil gained 7% off its lows to close up 4.8% from Friday. Treasury yields also turned around notably intraday from down 1-2bps to closing up around 6bps at the long-end (after ISM beat). VIX briefly tested below 14 but the 330RAMP went the wrong way with VIX rising and stocks closing not off the lows.
Off last night's flush lows... commodities have exploded higher...
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From Friday's close...
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and from the initial OPEC 'no cut' leaks from the Venezuelans
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The longest-streak in stock market history is over...
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From Friday's early close, the equity tumble escalated...
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and From pre-Thanksgiving's panic buying confidence-inspiring ramp close...
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Of course AAPL's collapse was stunning but described by some clever chaps on CNBC as "perfectly normal" and "a great buying opportunity"
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and Momo names suffered
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Treasury yields bounced off Bullard low levels today and popped 5-6bps on the day in light trading after ISM beat
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Credit markets are notably decoupling from stocks..
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Is someone starting to trade the TSY vs Equity divergence?
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The USD lost around 0.25% today, also helping commodities - having basically traded flat for th elast month
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Charts: Bloomberg
