Stocks Suffer Worst Week In 2 Months As Black & Yellow Gold Surge

Best week for WTI crude in 6 months (to 9 month highs). Worst week for the Dow Transports in 2 months (3rd worst in 10 months)... and while 5s30s flattened to its equal lowest since January 2009, 10Y Treasury yields ended the week just 1bp higher in yield. Late day VIX smashing was trumped by rumors of the death of Iraq's PM Maliki (which was later denied and sent VIX reeling lower again). The USD ended the week modestly higher (+0.2%) with GBP strength and EUR weakness the main theme. Silver and gold were bid (safety and CCFD unwinds) with the best week in 3 months. Copper and iron ore were down for the 3rd week in a row. "Most shorted" stocks rose for the 5th week in a row (notably decoupling from the broad markets's weakness in the last few days). So it seems that the market does not trade on bad news; it trades on fake rumors.


Gold took back the lead over stocks for the year but oil is the big winner (along with bonds)


A glance at the day shows low volume weak opening that was largely anchored by AUDJPY once again.


The late-day VIX slam failed as Maliki-dead rumors hit the desks...


Who could have seen that coming?




On the week, the Nasdaq was just unable to keep its winning streak going and Trannies were worst (3rd worst week in 10 months)


As Most shorted stocks were up 5th week in a row - diverging from the broad market


Of course the big news was crude oil, testing up towards $107; but gold and silver were well bid as a combination of safety and CCFD unwinds pressured PMs higher and copper/iron ore lower



Treasuries roundtripped on the week with 10Y practically unchanged (leaving 5s30s at the flattest since Jan 09)


GBP (blue) rallied notably this week on theback of the Mansion House speech hawishness and EUR fell 0.75% against the USD...


Charts: Bloomberg


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