The Dow Transports continue their entirely sensible march to infinity as they have no risen over 11% in the last 19 days with only 4 marginally lower days in that period. The S&P tested lower around the open but that ‘dip’ was mandatorily bid and lifted the index back towards the highs (with a 330 Ramp off VWAP for good measure). Volumes in futures, options, and stocks were absolutely abysmal (S&P futures lowest non-holiday in a couple years). The USD decided to limp lower (led by EUR strength), gold and oil ended unch (silver and copper -1%), Treasury yields very modestly lower, and VIX was banged back under 13%. Credit remains un-impressed (though rallied modestly in the day).
With volume absent, the machines were running the show again – leverage tool of choice was VIX as the ramp off VWAP from 330 proved infallible once again…lifting ES 5 points on no news at all – just for the shits and giggles… 950,000 contracts at the cash close vs 1.4 mm average…
The major indices continue to rise… with Trannies topping the pack… today was the Transports best day in 3 weeks!!!!
With Discretionary and Industrials leading (and asdide from Utes, Financials lagging)…
Gold and Oil faded back to unchanged as Silver and Copper lost ground…
Despite USD weakness…
But credit remains unimpressed…
Treasuries sold off for much of the day as stocks went higher – bucking the but it all trend from the EU session…
Dec VIX futures dropped to their lows…
Charts: Bloomberg
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/gI4oOheWMTA/story01.htm Tyler Durden