For the last 2 weeks, the US Dollar has surged – hitting new 13-month highs today amid JPY and EUR weakness – and for the last 2 weeks, US stock and bond markets have rallied (leaving 30Y yields implying the S&P is 130 points rich or yields are 25bps too low). S&P tops 2,000, Nasdaq closed up for 10th day in a row, Russell outperformed on major short-squeeze, Trannies slid red for the week. Today saw modest Treasury weakness (30Y +2bps, 2Y -1bps) but still lower on the week; gold ($1285), silver ($19.50), and oil ($94) gained on the day – despite USD strength – as copper dropped 1%. Credit markets remain unimpressed by record-er highs in stocks. VIX decoupled from equity strength today as NASDAQ options feeds broke. Volume was an utter disaster… that is all.
Nothing to see here, move along…
S&P 500 (cash) topped yesterday's highs early on (thank you resting stops)… 2000.02 close!!
as The Close was all critical to keep the dream alive…
"Most Shorted" stocks once again bore the brunt of the squeeze higher…
Which led Russell 2000 to dramatically outperform as Trannies tumbled – leaving Transports red on the week…and closing at the lows…
Some context for this move…
VIX decoupled as BATS and NASDAQ broke and options feeds went full retard…
The USD Index broke to new 13-month highs today…
But the last 2 weeks have seen USD demand flood both stocks and bonds in the US…
Credit continues to ignore the exuberance…
HY-IG spread is back at 250bps – practically unchanged on the year (thoug IG is notably tighter in recent weeks as investors shift to up-in-quality trades)
Early strength in PMs was battered back into submission around the normal 8amET witching hour… Oil rose on the day…
Quite a day in Gold futures…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1pDS3yG Tyler Durden