Brexit Bounce, Crude Crumble, & Dismal Data Slam Stocks, Bid Bonds & Bullion
By Tyler Durden
Spending rose (thanks to higher costs for energy) and everything else was dismal… and then Brexit moved into the lead – Inconceivable…
Following the flash crash in China overnight…
From Friday's close, things went a little turbo with crude crumbling and gold and bonds bid…
Which left “Sell In May” working for Trannies.. but the late-day panic bid (sparked by USDJPY) saved the month for The Dow…
PMs were May's laggard (Silver was worse than gold), Crude oil the big winner…
* * *
On The Month:
- USD Index Up 3% – best month since Nov 15
- AUD Down 4.9% – Worst month sine Jul 15
- WTI Up 4.8% – 3rd monthly gain in a row
- Gold Down 5.9% – Worst month since Nov 15
- Silver Down 10.4% – Worst month since Sept 14
30Y Treasuries were the only part of the complex lower in yield on the month as 2Y yield soared 15bps (before plunging today)…
The USD Index rose over 3% on the month led by AUD weakness offset by Cable strength…
Silver notably underperformed gold on the month but crude was the biggest winner…
* * *
Since Friday, Treasury yields tumbled as a slew of weak data this morning suggested the rebound is not there…
And stocks began to leak yesterday (futures) then accelerated lower today…before melting up to VWAP
As 17,773.64 was all that mattered today – Getting The Dow green for May… (note 17,740 is the 50-day moving average)
Since Friday, it was chaos as the rebalance meltup managed to get the S&P green for a second before the last minute dump…
Cable was the big loser today as Brexit polls showed a pickup in “leave” support…but the USD remains marginally higher on the week…
Gold drifted higher all day as silver dropped. Crude and Copper tumbled as Europe closed…
Crude algos seemed to run out of stops to churn above $50 and puked it all back…
Charts: Bloomberg
Source: Brexit Bounce, Crude Crumble, & Dismal Data Slam Stocks, Bid Bonds & Bullion
