vrijdag 12 mei 2017

Stocks Sink Despite VIX Records As Economic Data Collapse Continues

Overheard in China this week...


US Macro Data has collapsed for 8 straight weeks to its weakest and most negative in 12 months...


The last time US Macro and stocks decoupled like this was in mid 2015 and did not end well for stocks...


Finally to put a nail in this utter idiocy, here is 'soft' and 'hard' data, equities have even decoupled from the hype in 'soft' data...


So after all that stocks actually ended the week red (aside from Nasdaq of course which is awesome)...


VIX has now closed below 11 for 15 consecutive days...


Smashing the previous record...


Financials were the worst hit on the week, Tech outperformed...


It was a retailer massacre this week, but FAANGs soared...



Despite 2 very weak auctions (10Y and 30Y), Treasury yields ended the week lower...


30Y Yields dropped back below 3.00%...


After this morning's CPI data missed expectations sending breakevens tumbling (after rising on yesterday's inflation data)...


The USD Index tumbled on the day (3rd day down in a row) after weak CPI data but remains higher on the week...


All the majors compressed today to end the week marginally changed but note that Yuan was the only one stronger on the week against the dollar...


Despite USD strength, crude had a good week (driven mostly by an inventoiry driven squeeze. Gold, silver, and copper were close to unch (rallying as the dolar index slipped the last 3 days)...



Gold managed to get back above its 100-day moving average and Silver's streak of losses stalled...


Finally Bitcoin was battered today after the global ransomware attacks struck (still up 10% on week, and up 6 of the last 7 weeks for a 75% gain)...


WTF!!