donderdag 29 juni 2017

Another Vol Event Strikes As FANGs Face Worst Week In 5 Months

As legendary market technician John Bollinger tweeted today;
# "Another volatility event in the US stock market. At the lows S&P -1.4%, VIX +51.1%. This is going to get out of hand one day." 
And quite an event it was VIX spiked to 15.16 and liquidity collapsed before panic-vol-sellers struck again (as banks hit unchanged) slamming VIX back to an 11 handle by the close...


While S&P 'VIX' was slammed, Nasdaq 'VIX' remained elevated...


Risk Parity funds getting hit as stocks and bonds are dumped...


Of course, dip-buyers struck. The last losing month for Nasdaq was last October, and for now it's in the red; S&P bounced as it crossed the unch line for June)...


On the day, Nasdaq was the biggest loser (and The Dow managed to outperform thanks to JPM)...


Nasdaq broke below its 50DMA, but as VIX was crushed, every effort was made to get the tech-heavy index back above this technical level...


FANG Stocks were ugly and while banks gave up their gains early, buyers appeared as they hit unchanged...


The Big Banks tumbled off their gap-up-open, but ince they hit unchanged, buyers re-appeared... 


Stocks are falling back to the divergence in breadth...


While stocks were lower, bonds were also sold with Treasury yields up across the curve...


10Y Yields extended their run to 5 week highs...


The yield curve also continued to steepen today, back to flat on the month before falling this afternoon...


This is the biggest 3-day steepening in 2s30s since the election. The Dollar Index is down 6 days of the last 7, to its lowest close since Oct 2016...


Cable and EUR strength are the dominants anchors around the dollar's neck this week as USDJPY continues to tread water...


Despite the dollar weakness, commodities all saw selling pressure today with gold and silver now lower on the week...


So Stocks Down, Bonds Down, Credit Down, Dollar Down, Oil Down, Gold Down, Copper Down, VIX Up. Smells like a big derisking day...


Is it time for reality to dawn on stocks??