{"id":26263,"date":"2013-02-06T22:19:41","date_gmt":"2013-02-06T21:19:41","guid":{"rendered":"http:\/\/feedproxy.google.com\/~r\/zerohedge\/feed\/~3\/y8WXBHEr7wc\/story01.htm"},"modified":"2013-02-06T22:19:41","modified_gmt":"2013-02-06T21:19:41","slug":"tale-of-two-markets-again","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/breaking-news\/tale-of-two-markets-again\/","title":{"rendered":"Tale Of Two Markets (Again)"},"content":{"rendered":"
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The US equity market continues to boldly go where no other market is willing to go (Dow outperforming EuroStoxx by 850bps this year)<\/em>. European stocks and bonds (+30-45bps) are down notably on the week (and year in some cases); Treasury yields are 4-6bps lower on the week; the USD is up 0.6% (as EUR bleeds a little lower into tomorrow’s ECB); and Gold is up 0.6% (oddly with the USD) on the week; but US equities are unchanged with Staples and Industrials holding gains on the week. Today saw credit markets and treasuries pushing notably risk-off as stocks oscillated around unch on the week – pushing to the day’s highs into the close on the back of yet another vol-selling ramp<\/strong>. Equity volume was average and trade size was lower than average as cash S&P and Dow managed small gains and Nasdaq a small loss as AAPL gave back its ‘buyback rumor’ gains.<\/p>\n

Treasuries and Credit notably more risk-off vs Stocks and Vol…<\/p>\n

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leaving the S&P 500 unch for the week…<\/p>\n

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though breadth was weak once again…<\/p>\n

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but the USD is up for the week…<\/p>\n

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and Gold is up on the week…<\/p>\n

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and Treasury yields down for the week…<\/p>\n

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as stocks certainly seem on their own from shortly after the European close once again today… as Capital Context<\/a> (<\/a>@CapitalContext<\/a>) LLC’s<\/em> ETF SPY Arb model (left) indicates, today saw US equities notably more exuberant than the rest of the market capital structure and while CONTEXT (right) was more correlated – overall, risk-assets are less excited than US equities in general. The tactical asset allocation model remains market-neutral (based on credit’s divergence).
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This inexorable rise in stocks to start the year is not unusual – though this is now the best in years…<\/p>\n

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AND the most disconnected from other asset classes…(HY notably divergent from previous years)<\/p>\n

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Source: Bloomberg and Capital Context<\/em><\/p>\n

Bonus Chart: We’ve seen this disconnect before…<\/p>\n

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Bonus Bonus Chart:<\/strong> In case you had any question as to this market’s schizophrenia… favorable rulings in the ongoing MBIA\/AGO vs BAC<\/strong> court battle smashed MBI’s share price up over 15% – but BofA’s also rose!! Teflon market…<\/em><\/p>\n

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