Japanado Sends Stocks To Record Highs Despite Crude Crumble
By Tyler Durden
Record high stocks, record low yields, 2016 low earnings expectations, and sixth straight month of labor market conditions collapse…
This is now the second longest bull market in US history…
Nasdaq regained 5,000 briefly… as 2016 EPS expectations near the year's lows…
Nasdaq is now up over 2% from Brexit…
Today's excitment was all over in futures land before the US open thanks to a promise of a cajillion yen of fiscal stimulus from Japan…
The S&P 500 took out its 2015 all-time record highs at 2134.72…but VIX also rose on the day…
Notably Dow Futures leaked over 60 points from their highs after Europe closed…
Post-Brexit, gold and bonds remain the biggest winners, stocks just green, and crude crashing…
The last time stocks were this high, 10Y yields were 105bps higher!!!
And bonds, gold, and silver have soared since May 20th 2015…
Oil tumbled again today to near 3-month lows and breaking below key technical support (100- and 200-day averages)…
And stocks continues to diverge…
Notably the correlation between high yield credit and oil prices has turned notably negative… which has not ended well the last 5 times it happened…
h/t @JesseFedler
The USD Index rose today as JPY weakness (huge move on Abe stimulus mockery) offset GBP strength (May as PM)…
This was USDJPY's biggest day since QQE2 was unleashed…bear in mind that USDJPY is stil down 5 handles from pre-Brexit excitement…
as Nikkei 225 has rallied over 1000 points post-payrolls…
Treasury yields rose notably today (5bps at the short-end and long-end, 8bps in the belly)… 10Y yields had their biggest percentage gain since December today…
Copper managed to hold gains after last night's China inflation data, silver outperformed gold but crude crumbled off an early bounce…
Charts: Bloomberg
Source: Japanado Sends Stocks To Record Highs Despite Crude Crumble
