Stocks Soar To 10-Month Highs On Crude’s FauxPEC Meeting Headlines
By Tyler Durden
Pride comes before the fall…
The Dow soared once again – why not – to its highest since June 2015 (when Fwd EPS was 1178 as opposed to 1120 currently)…
VIX was slammed down to a 12-handle at the open… which sparked a bounce in VIX but once the S&P fell below 2,100, VIX smash was back on…
Which slammed the VIX term strcuture to Dec 2014 steeps…
Which marked the top then…
The late-day fade today (snapping S&P futures back to VWAP)…
Dragged Nasdaq back into the red for the week…
Energy and Financials remain the leaders on the week as Utes fade…
Nothing to see here, move along..as goes everything
It seems some panic-selling EUR ahead of tomorrow's ECB meeting sparked USD strength – pushing it back to unchanged on the week…
Treasury yields spiked today (almost as if someone was sending a message to Obama as he visited The Sauds)…
Pushing 30Y yields back above their 50DMA… (and the 2Y, 5Y, 7Y, and 10Y)
Commodities were steady until towards the close when stocks rolled over and gold, crude, & silver were slammed lower…
Silver moves are becoming considerably more volatile…back below $17 at the close…
Despite all the denials and negative headlines, crude oil spiked irrationally… above $44 in June contract
As May expired… (May drastically outperforming June into expiration as someone appears to have got squeezed…_)
As it appears the massive unwind of crude hedges was the big driver…but it appears vol has normalized.
Finally – as a reminder of how these 'bounces' end… sometimes…
Charts: Bloomberg
Source: Stocks Soar To 10-Month Highs On Crude’s FauxPEC Meeting Headlines
