Submitted by Tyler Durden on 01/04/2012 16:26 -0500
Bond
Copper
Derisking
Exchange Traded Fund
High Yield
Investment Grade
Iran
The S&P 500 closed practically unchanged today - recovering from decent selloff to a late-Europe-session low - amid volume that was over 30% lower than at the same time last year. Investment grade credit, the high-yield bond ETF HYG, and broad risk assets in general kept pace with ES (the e-mini S&P 500 futures contract) but high yield credit (tracked by the HY17 credit derivative index) outperformed considerably - moving to its best levels since late October. This disconnect appeared as much driven by technicals from HY-XOver (Long US credit vs Short EU credit) and HYG vs HY17 (a high premium-to-NAV bond ETF vs relatively cheap high yield spread index) trades as it was a pure risk-on trade. Elsewhere, the USD retraced only marginally the earlier gains of the day (with EUR hanging under 1.2950 by the close) as Treasury yields jumped 5-7bps more (30Y +14bps on the week now) as we can't help but notice the correlation between TSY weakness and EUR strength for a few hours this afternoon (repatriation to pay up for tomorrow's French auction?). Commodities were
Irish66
Irish66's picture
There is no new money coming in via money market and 401k's.
There will be no volume, we are done with this broken mess.
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Wed, 01/04/2012 - 16:45 | 2033767 Debt-Is-Not-Money
Debt-Is-Not-Money's picture
Its "GAME OVER"!
All we see is the HFT's playing with each other.
hmmmmmmmm I have heard dat befoo
Mr Lennon Hendrix
Mr Lennon Hendrix's picture
Let's be clear about this though, those levers have access to hundreds of trillions of dollars. The WH and the Fed do not want this. This is also a bipartison effort, thus why Bush ran huge deficits and issued TARP. The next guy (ubless it is Paul) will have the same fiscal policy, and the Fed will always have the same monetary policy. The retail investor has not mattered for 3 years (at least) why would it matter now?
All that matters are the machines trading with each other. So what else matters?
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Wed, 01/04/2012 - 16:32 | 2033732 SheepDog-One
SheepDog-One's picture
Dead-empty market casino, only thing keeping it going is levers getting pushed or pulled behind the curtain.
http://www.zerohedge.com/news/one-wordvolume?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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