OilPECalypse Sparks Stock-Buying Panic

Something is up... everyone and their pet rabbit was speaking today (and there's more tomorrow)

 

More crappy macro data today... but all that mattered was Yellen never screwed up totally, Deutsche Bank didn't actually declare bankruptcy, and 'sources' said some short-squeeze-creating statements in Algiers...

 

A big gasoline build (DOE data) sparked RBOB/WTI selling at 1030ET but as Europe closed the USD turned around and then "sources" from Algiers sparked buying panic in crude... which then took out stops, dragged stocks and bond yields higher... before OPEC headlines late on faded the gains...

 

While some other sectors gained, the big move was in the Energy Sector....

 

Small Caps and The Dow outperformed on the day and Nasdaq lagged...(notice the panic buying as Nasdaq dared to go red late on...

 

Notably Small Cap remains red on the week despite panic squeeze efforts late on...

 

VIX was stomped back down to a 12 handle, filling the gap from Friday's close...

 

Treasury yields ended the day up around 1bps across the curve as early buying gave way to kneejerk selling as OPEC headlines hit...

 

Oil's gains sparked panic-buying in HYG (high yield bond ETF), sending it to 13- month highs...

 

The USD Index slid from the European close (back to unch on the week) with CAD/AUD strength (on oil's surge) helping to take the dollar lower...

 

Of course, crude dominated commodity-land with copper up also and OPMs flat...

 

Some context for the WTI move - not all that impressive really...

 

But once again - it slooks like major hedging being done into this spike in oil prices...

 

Charts: Bloomberg