While victory was declared yesterday, today was a let-down for the exuberant. High beta (NASDAQ and Russell) pushed on but the S&P, Dow, and Trannies slid leaving the NASDAQ YTD best performer (+1%) and the S&P back into the red for 2014. Financials underperformed, Utilities outperformed. Treasuries rallied all day – with the long-end underperforming and a notable flattening across the curve (30Y -2bps on the week, 5Y +2bps). The USD had a quiet day as JPY strengthened modestly (hence the weakness in the S&P) as overnight AUD weakness (poor jobs data) left that carry pair alone in the dark. VIX and credit markets have been notable underperformers relative to stocks in the last 2 days. Commodities were quiet all day with some early downside pressure in the precious metals unwound (leaving then down 0.5% on the week). Of course, it wouldn't be the US equity market without the ubiquitous VIX slam attempt to ignite momentum and get the S&P green – it failed for once!
VIX is not amused… (but of course – the last few minutes saw a VIX smasher…)
Nor is credit…
But the NASDAQ and Russell don't care – if it worked yesterday, it will tomorrow, right?
on the day the late-day ramp saved the NASDAQ from a red close and rammed Trannies higher…
Treasuries rallied back into the green for the week…
Commodities were relatively quiet aside from some pressure in the early European session…
Charts: Bloomberg
Bonus Chart: Stock Sentiment vs Bond Sentiment is at a worrying level for stocks bulls (h/t @Not_Jim_Cramer)
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/CfjmUhoWkBg/story01.htm Tyler Durden