Wednesday is not Tuesday (except for Trannies). Some early weakness in stocks was bid mindlessly back to its highs even as 10Y bond yields kept tumbling to 11-month lows and oil and copper rolled over. VIX ended the day higher (again) ignoring the exuberance in the light volume equity market. 10Y yields dropped to 2.43% – its best day in 5 months (breaking last October's key support). The yield curve flattened dramatically with 2s30s at its tightest in a year. The USD was bid (led by GBP weakness) buy JPY's volatility is what ran the stock show today. Gold and silver fell further as did WTI crude (back under $103). The S&P 500 is now around 60 points rich to 10Y bond yields (and the world is still short bonds); credit spreads are well off their tights and VIX isn't falling; breadth is weakening and so is volume… but apart from that… BTFATH. A late-day selling frenzy took the shine off the CNBC headlines with stocks closing red.
10Y at 11-month low yields… fuck yeah America…
Trannies don't care… but the last few minutes saw selling volumes pick up notably…
as USDJPY ran the show…until stocks decided to catch down to EURJPY
And stocks are entirely decoupled from bonds
It's been quite a week for the entire bond complex…aside from 2Y!! which slammed the yield curve to its flattest in a year
VIX remains stubbornly high relative to equity exuberance as it seems some protection is warranted with stocks so decoupled…
Commodities were ugly…
And suddenly everyone excited about Biotechs and MoMo stocks.. here's some context…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1nCVfIO Tyler Durden