Apart from a 45-minute period from 1030ET to 1115ET (POMO) of totally failed momentum ignition, US equities and USDJPY were once again perfectly coupled leaving the Dow and S&P in the red today and the rest practically unchanged on dismally low volumes. Treasuries continue to slide with yields now 5bps (30Y) to 10bps (5Y) higher in the last 2 days (the worst 2 days for 5Y in almost 2 months). The USD ended practically unchanged on the week (once again) as EUR weakness (Coeure comments on negative rates) offset GBP strength (Carney comments). VIX traded down to 14.02% intraday (and the term structure is very steep and complacent once again). Gold (new 3-month highs) and silver surged intraday but the afternoon saw selling even as bonds, stocks, and the USD weakened. Dow remains below 16k.
The correlation remained strong apart from a total dislocation between 1030 and 1115ET (POMO) that failed to spark any momentum in US equities
The day started with the ubiquitous pump for retail but then faded
The Nasdaq remains the only major index in the green for 2014…
Treasuries continues to push higher (but remain considerably less positive than stocks)…
FX markets were volatile BUT the USD index remains unchanged on the week (EUR weakness on Coeure's negative rates comments and GBP strength on Carney comments)…
Gold made new 3-month highs but PMs were sold in the afternoon as stocks went limp and bonds sold off…
Charts: Bloomberg
Bonus Chart: (h/t @Not_Jim_Cramer) Fed admits its balance sheet has "ballooned" but asset prices not in a bubble…?
Bonus Bonus Chart: (h/t @BennettWoodman ) – Sustainable? Profits are above trend by a wider margin than all previous profits booms save 1916…
via Zero Hedge http://ift.tt/1m9cwuC Tyler Durden