zerohedge.com / by Tyler Durden / 01/30/2013 16:07 -0500
We noted yesterday the growing disconnect between stocks and credit - today saw stocks start to play catch-down. High-yield credit (specifically HYG – the bond ETF) has fallen four days in a row – its biggest four day plunge in over 2 months (with today’s drop the biggest single-day drop in almost 4 months) amid mega volume. VIX (another notable disconnect) continued to push higher (above 14% for the first time in 3 weeks). Treasuries had been leaking higher in yield on the week (30Y +8bps as FOMC hit) but slid lower as the post-FOMC day wore on. The USD weakness (led by significant strength in CHF and EUR) supported precious metals (and commodities broadly) but not stocks. Silver are up almost 3% on the week (and Gold outperforming USD’s implied shift). Homebuilders faded from the open with all the QE-sensitive sectors (Materials, Energy, and Discretionary) all red on the week now. It would appear that bonds recoupling (higher in yield) with stocks was the end of the catalyst for this run higher for now as divergences are appearing everywhere.
S&P 500 futures went red on the week at the close…Worst day in a month!
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