Ok – to summarize – stocks ripped to a technical level then dipped, thanks to momentum ignition from the crude complex as machines misread the inventory draw data (which sent oil over $50 opnly to crash back to the lows)… Homebuilders dropped as new home sales rose… and restaurant stocks plunged as Services PMI soared… Makes perfect sense, right?
Builders battered despite surge in new home sales…
Despite a surge in Services PMI, Restaurant stocks were pummeled today – worst 2 day drop in 9 months to 3 year lows (just as we warned 2 weeks ago)…
- CMG -6.6%; 3Q Rev., Comps Miss; Downgraded at Credit Suisse
- PZZA -4%; CEO John H Schnatter Sells 73,686 Shares as Part of 10b5-1 Plan; reports 3Q results Nov. 1
- SHAK -2.2%; Falls 2nd Day, Reports 3Q November 9
- EAT -2%; Yesterday, 1Q EPS, Rev., Comps. Miss
- BLMN -1.8%; Reports 3Q Friday
Additionally, the correlation between stocks and bonds just turned negative (normal) for the first time in 2 months…
Here's what really mattered today…
The Dow clung to gains on the day… (as S&P's early ramp to unch failed)…
Small Caps underperformed…
S&P 500 cash was ramped to its 100DMA around 2144, running stops before fading back…
Dow held on to gains thanks to Boeing (as AAPL was biggest down-weight)… (Dow +38pts… BA was 49 of those and AAPL -21)
VIX pushed back above 14 (almost 15 intraday)…
The USD Index drifted lower on the day, unch on the week…
Bonds flip-flopped higher in yields today but the broad curve is moving parallel for now…
Crude pumped'n'dumped to end red, PMs drifted lower as copper bounced…
WTI closed at its lowest in over 3 weeks as $50 support becomes resistance…
Charts: Bloomberg
via http://ift.tt/2eGGsAk Tyler Durden