S&P Fails To Hold Record Highs As Gold Outperforms

S&P Fails To Hold Record Highs As Gold Outperforms

US equities tagged new highs early in the day-session sparked by USDJPY ignition and rotating to support from AUDJPY as stops were run and exuberance over shitty data reigned. “Most shorted” stocks dramatically outperformed early on providing the sacrifice required but while bond yields rose from their open last night, they end the day practically unchanged (10Y +1bps); The USD rallied into the open but EUR and AUD strength cracked it back to practically unchanged by the close. Copper flailed (on slowing China construction fears) but oil, silver, and gold all rallied around 1% on the day (though rolled over in the afternoon). VIX dropped but held 14% and remains notably divergent. Credit rallied but remains a laggard compared to equity exuberance. Stocks tanked into the close; catching down to VIX, credit, and USDJPY – what a “market” with the

Thanks to USDJPY then AUDJPY…

And another short-squeeze…

VIX did drop today but found support at 14% and is still notably divergent from stocks…

Credit rallied on the day but note that stocks fell back to their reality from the stop-running highs early on…

Treasuries seem unimpressed by the equity exuberance…

The USD closed unchanged (as Europe’s EUR weakness reversed into US’s EUR strength)… note AUD strength…

Gold and Silver gained around 1% on the day (outperforming stocks) and WTI gained… but they rolled over a stocks slipped in the afternoon…

It seems Bob Pisani nailed it at around 1030ET – “there’s no fundamental reason why we are up 200 points today” – indeed, Bob…

Charts: Bloomberg

Bonus Chart: It seems BofA’s earlier call to sell Nattie… worked…

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