Sunday / December 16.
HomeInvestingDow, VIX, Gold All Up As Yet Another Ratio Screams "Record High"

Dow, VIX, Gold All Up As Yet Another Ratio Screams "Record High"

This market reminds us of this…“none shall fall”

 

Gold remains 2017’s biggest gainer, oil is down, bonds flat and the panic bid this week dragged The Dow higher…

 

After 6 straight intraday ramps in the S&P 500, the last two days – since Catalyst stopped its forced covering – have seen the character of the market shift notably…

 

On the week, Nasdaq was the big winner, followed by The Dow (as GS, JPM offset UNH)…NOTE the panic buying into the close…

 

Just look at the panic in VIX crushing to spike The Dow green…

 

This is easy…

Financials were the week’s best performer (best week for banks in over 2 months) and Energy the biggest loser (worst week in over 3 months)…

 

VIX was up and stocks were up…

 

This was the largest divergence week between VIX and S&P in years… (S&P +1.3%, VIX +6.5%)

 

Notable decoupling between stocks and bonds this week…

 

Bonds end the week marginally higher in yield (2Y unch)… 4 days in a row of strong buying pressure during the US day session

 

The USD limped higher to end the week green led by Cable weakness…

 

Crude broke a 4-week winning streak and closed red (as the dollar rose for the second week), but PMs managed to eke out a gain…

 

Stocks don;t care about oil anymore…

 

NOTE: Hedge funds boost bullish WTI crude bets by 30,951 net longs to 390,338, new record high

 

Finally, as Bloomberg’s Cameron ‘macroman’ Crise notes, if you’re looking for another reason to get bearish US equities, try this: the ratio of equity to bond returns is approaching all-time highs in data going back 29 years.

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