Overheard on CNBC today… "today we get proof this is not a bubble…"
Nope..
So Catalan secedes and Spain loses 22% of its GDP and still the Spanish stock market is outperforming the S&P in USD terms…
Before we start – let's take a quick look at today's cross-asset-class moves – Stocks Up (well durr!), VIX crashed (back below 10), Bonds Up (wait… that doesn't make sense), Gold Up (woah, why)… and the Dollar Down… (certainly doesn't sound like the epic stock market environment that the media proclaims it to be)…
This is the 5th weekly rise in a row for Nasdaq (best day since the election), 7th in a row for S&P and Dow… but Small Caps and Trannies ended the week red…
The Dow barely managed gains on the day…
Of course today was all about AMZN (best week since April 2015) and the big tech stocks… and as AMZN squeezed over 13% higher on the day, so Nasdaq followed…
VIX tumbled on the day, back below 10 – after topping 13 in the middle of the week…
And while Nasdaq VIX had decoupled from the index, today saw them reconnect somewhat as vol collapsed…
But can you spot the week's odd 'tech' out…
FANG Stocks best week in 3 months…
Given the decoupling between AMZN and its EPS expectations…
Perhaps you are wondering why it just hit $1100…(correlation between the level of G3 balance sheets and AMZN for the last year is well above 95%)
5 Tech stocks alone added a stunning $200 billion market cap today…
Tax hopes – "sell the news" again…
Financials outperformed the broad market on the week as the yield curve modestly steepened…
Treasury yields ended the week higher but amid today's exuberant equity market gains, bonds were bid
The Dollar Index rallied on the week (on yesterday's EUR tumble) but rolled back over today…
CAD (BoC), AUD (CPI), and EUR (ECB) weakness sent the dollar higher on the week…
EURUSD's worst week of 2017…
Bitcoin ended the week lower (yes lower) – first losing week in the last 5…
Despite the dollar strength, WTI Crude soared over 4% this week (Brent above $60 – highest since July 2015). Copper, Gold, and Silver slipped (though the PMs rallied today)…
WTI's best week in 3 months…tagging $54 – the highest since March…
Finally, courtesy of Mr. 'Not' Jim Cramer…
Investors Intelligence Survey: Bulls-Bears Spread Hits 30 Year High. Which of course was 1987. http://pic.twitter.com/ce4wQvB12M
— Not Jim Cramer (@Not_Jim_Cramer) October 25, 2017
via http://ift.tt/2zW2AOU Tyler Durden