"Sell The Inauguration" – Dow & Dollar Drop As Bonds & Bullion Pop
By Tyler Durden
Was it really that easy – Buy The Election (hope), Sell The Inauguration (reality)?…
The Dow continues to cling to unchanged for 2017 (small caps red)…
Since the inauguration…
VIX was the main play thing in American markets again (but The Dow ended down for the 6th day in the last 7… NOTE – the overnight futures ramp dragged cash up to perfectly tag stops at Trump Address highs…
Europe's VIX spiked most in 4 months today, above 17…
Notably, Treasury VIX remains notably elevated relative to Equity VIX post-Trump…
With SKEW at over 146, markets have only been more fearful of a collapse twice in its 27 year history…
Breadth remains divergent for the S&P 500…
But Kuwait is in panic melt-up mode…
Bank stocks dropped once again (contining the trend of up-down-up-down started since the beginning of 2017)…
Notably XLF – the US financials ETF – has fallen to key 50-day moving average…
QCOM was crushed but it didn't really help AAPL…
While the biggest Emerging Market ETF ripped higher today (as the dollar dropped), we note that it suffered a 'death cross'...
While health insurers all tumbled on the the Aetna, Humana deal blockage, only Aetna held on to losses…
Trumphoria is stalling as financial conditions have tightened post-election…
The 30Y Treasury yield fell back below 3.00% – notably, the 30Y yield has gone nowhere since 2 days after the election…
Treasury yields fell across the curve with the long-end outperforming…(note bonds did sell off after Europe closed)
Two words – “policy error”?
The Dollar Index extended its losses from Friday afternoon, stalling at Fed rate-hike lows…
Yen and Sterling strength were the heaviest weights on the dollar index today but everything was bid against the greenback…
While not the perfect analog, one wonders if the post fiscal year spike in the USD is starting to fade once again…
Crude slide despite USD weakness but copper gained…
Gold closed at its highest since Nov 17th…
Bonus Chart: Turning Japanese?
