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Stocks Close "Not Off The Lows", Small Caps Unchanged Since Oct 2013

The Russell 2000 is -7.5% from July highs, -3% in 2014, unchanged since last October and year-over-year small-cap performance is the worst since July 2012. Despite three valiant momo-pump efforts to rally stocks to VWAP (to cover institutional sellers), they just kept falling back to bond-market-reality as US equities decoupled lower from JPY after Europe closed. The USD closed unch (after major swings intraday around Europe's close) with GBP strength and AUD/CAD weakness leading it lower on the week. Treasury yields dropped 2-3bps across the curve (down 3-5bps on the week) and all below FOMC levels (30Y -11bps). Gold is now up 0.6% on the week with oil and silver rising modestly. Copper found no bid despite a very slightly better-than-expected China PMI. Financials slipped once again (catching down closer to credit).

On the day, the European close signaled risk-off and the ubiquitous Tuesday panic buying in the last hour lifted the S&P to VWAP before a very weak close "not off the lows." Dow down 100+ pts 2 days in row for first time since June.

 

 

Not been a good year for small caps...

 

Stocks kept trying but every rally reverted to bond reality

 

USDJPY was in charge from US open to EU close then stocks fell back to AUDJPY...

 

Stocks are all red post-FOMC with Russell -3%...

 

With financials falling back and homebuilders holding losses post FOMC

 

Catching down to credit's reality...

 

Treasury yields were down again today - with 30Y now down over 10bps from pre-FOMC levels...

 

FX markets appeared quiet judging by the USD's unch close but it dumped and pumped intraday on EUR swings - AUD and CAD weakness was offset by GBP strength

 

Modest USD weakness helped gold rise and silver and oil end unch. Copper kept sliding...

 

Charts: Bloomberg

Bonus Chart: BABA -13% from all-time highs...