Some Stocks Fall: Mainstream Media Proclaims "Flat Is Kind Of A Win!"
By Tyler Durden
Some stocks did not rise today… but do not worry – one clever CNBC chap noted “flat is kind of a win!” – nevertheless, panic began to sweep the mainstream media as a new record high was not achieved in some indices…
Another day, another record high for stocks with a pre-open ramp…
but that was the best of it… although the panic bid resumed after Europe closed…
In cash, Trannies which went vertical as CSX earning sleaked before the bell)
But stocks remain the post-payrolls winner…
Notably The Dow stuck around its previous record high again 18,351 intraday…
Another new high in July, which FBN Securities technical analyst JC O’Hara notes could be a problem…
Since 1950, 27 years posted a new 52-week high in July; avg. 3-month pattern suggests “new high momentum fizzled” into sideways trading, with median pullback 7.5%, avg. decline nearly 12.5%..
After a July high, stocks bottom in late October.
“Chasing the market is not the best option” especially amid “plethora of severely overbought breadth indicators.”
And today, bonds notably decoupled from stocks once again…
Having decoupled for a few days, VIX dipped today to a 12 handle – smells a lot like managers unwinding hedged positions (i.e. covering hedge and reducing underlying exposure)…
Treasury yields tumbled 2-5bps (long-end outperforming) as yesterday's CNBC call for the start of the Great Rotation is dashed…
The USD Index ended very modestly lower but basically flat on the week as the chaos in GBP and JPY swung the other way today (GBP weakness on May and cabinet apointments and JPY strength on Heli money denials) biggest drop in Cable in 7 days…
Silver and Gold gained on the day, as did Copper extending its post-payrolls gains to 6%!! but crude tumbled…
Biggest 3-day surge in Copper in over 4 months…
Dramtically bigger than expected Distillates build and production rise sent oil sliding today back to 9 week lows (below $45)
As the 2015 analog looks increasingly spooky…
Charts: Bloomberg
Source: Some Stocks Fall: Mainstream Media Proclaims "Flat Is Kind Of A Win!"
