Market 'Plunges' By 0.17%, Worst Drop In Three Weeks

The streak is dead - long live the streak - for the first losing Friday of the year. A sad day among the media though Maria B did proclaim "today was a victory even though we were down," so we can rest assured that all is well. While equities ending off their highs, the week was still positive 1-2% - especially for the Trannies - but rather oddly (well not really anymore) Treasuries are going out at the low yields of the week - down 7bps. The USD lost 0.7% with AUD and GBP strength weighing most and a decent surge higher in JPY today's day session. Oil prices jumped 1.7% on the week back over $93.50 (as RBOB and retail prices start to rise once again). Gold and Silver diverged with the former up 0.8% and the latter -0.7%. Volume today was very heavy (and it was a down day) but the quad-witching is to blame as opening an closing trading was huge as S&P 500 futures tagged new highs overnight but couldn't escape the lows of VWAP at the close. So far 2013 has been a perfect replay of 2012 - Is this it?

 

Keep Calm and Don't Stop Buying The F$$king Dip...

 

It was an odd week of divergence as Bonds and Stocks and Gold were bid - sounds like moar QE to us...as 10Y yields close at one-week lows and stocks near the highs...(though strangely in line with gold)...

 

and a potentially interesting insight - 'most shorted' names were ramped today but it failed and on the week - the Russell and its 'most shorted' close in line... as we warned after yesterday's divergence - is the squeeze over?

 

March so far in the markets... No Ides Yet...

 

as Oil jumped and gold and silver diverged...

 

Overall the TSY strength and FX carry reversal dragged stocks lower in a highly correlated manner as Capital Context's CONTEXT model shows (gap is data from futures roll)...

 

2013 = 2012 - Is This It?

 

Charts: Bloomberg and Capital Context

 

Bonus Chart - what happened the last few times that volume and average trade size surged on an AAPL up day? - oops...


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