Seriously…
First things first – it's payrolls day so stock ramp no matter what… But gold topped stocks post-payrolls and bonds were sold as crude rallied most…
It's been a volatile week…
- S&P 500 Down 2.3% – Worst 2-week drop in 3 months
- Dow Transports Down 5.5% – Worst 2-week drop in 4 months
- "Most Shorted" stocks Down 4.6% – Worst week in 4 months
- AAPL Down 16.6% – Worst 3-week drop since Nov 2008
- Treasury Bonds – Best 7-Day rally in 3 months
- European Bank Credit (Subs) Rose 44bps – Worst 2-week spike in 3 months
- High Yield Bonds (HYG) Down 1.75% – Worst week in 3 months
- USD Index Up 1.4% – Best week in 6 months
- Copper Down 5% – Worst week in 4 months
- China Rebar Down 9.6% – Worst week in 10 months
- China Iron Ore Down 4% – Worst week in 4 months
And finally, the last 4 weeks have been the worst for US Macro data since March 2015…
But Stocks managed to rally – as we noted above – but ended the week in the red…
S&P bounced off unch for the year and its 50DMA…
VIX tailed immediately as payrolls hit and then as we went red for 2016, VIX was hammered once again to a 14 handle!!
But this was not a squeeze – as "Most Shorted" stocks suffered their worst (or best if you're short) week in 4 months…
Biotechs were battered thanks to AGN and ENDP…IBB down 8 of the last 10 days…
Meanwhile over at the "no brainer"… AAPL is unchanged since April 2012…
Chesapeake collapsed on collateral call headlines (is there anyone left in managemnt to die?)
Bonds ain't buying it – Credit markets had a realy ugly week (and day) even as stocks dead cat bounced…
And here is why…
Treasury yields fell on the week (but rose today after the dismal jobs data – which makes perfect sense to sell bonds when economic data that has maintained the 'everyting is awesome' narrative is completely destroyed…)
The USD Index rose for the 4th day in a row – despite the apparently dovish crap jobs news…note that commodity currencies (CAD/AUD) were the worst hit…
Commodities rallied on the day despite USD strength with Gold best of all (managing tio get green briefly before being pushed red)… Copper bounced off its 100DMA today
Charts: Bloomberg
Sorry, almost forgot#BREXIT pic.twitter.com/XUBkLQsJll
— Rudolf E. Havenstein (@RudyHavenstein) May 6, 2016
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