The slow-motion wreck continues...
Trannies are now up over 2% from the start of the ramp at 330ET yesterday... It was all nearly ruined by a late-day "credible threat" headline... but there's no way that's breaking this Santa Claus rally...
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With stocks having retraced 50% of the post-Fed plunge...
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With crude failing.. and JPY fading... all that was left was to crush VIX (via VXX selling)
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Volume was terrible... And so was breadth...but The Long-Bond continues to outperform post-Fed (along with gold) as WTI and stocks lag...
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"Most-Shorted" stocks were smashed higher after Europe closed today (same as yesterday)...
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And The "dash-for-trash" is most clearly seen here... as Weak Balance Sheet stocks suddenly surge relative to Strong Balance Sheet stocks...
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Today's dash-for-trash appears to be a desperate high-beta run for the Santa Claus rally into year-end as they reverse the biggest losers of the year...
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But The S&P and Dow remain red for the year... in other words 1% more in this rally for The S&P before we see selling pressure
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Chipotlecoli is now down 35% from October highs...
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Credit's decoupling yesterday was crushed today...
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Corporate bonds rallied (but only retraced around half of the plunge post-Fed)...
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But while energy stocks find support at the year's lows, the energy sector's credit risk is continuing to dive... (very late on Energy spreads below even further out to 1406bps - record wides)
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Who do you think is right? A 28x Fwd P/E equity market.. or credit professionals?
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Treasury yields surged today (led by the long-end) as the curve steepened 3bps or so
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Cable plunged today but it was EUR weakness after the european close that sparked a modest recovery in the USD (which closed red)...
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Despite the USD Index weakness, commodities drifted lower (with copper worst)...
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But WTI rallied as Brent sold off, driving the spread to zero for the first time since January... with Brent hitting cycle lows...
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Charts: Bloomberg