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"We Have A Problem" - Houston Hits Stocks, But Bonds & Bullion Bid

"Unprecedented"

 

Gold was the big gainer on the day with bonds barely green and stocks and the dollar lower...

 

And remains the big winner YTD...

 

The Dow ended the day red, but ranges were very narrow...Because nothing says buy small cap (domestic) stocks like an unprecedented crisis in Texas...

 

FANG Stocks closed higher but gave back their early short-squeeze gains...

 

S&P remains below its 50DMA...

 

But VIX was hammered lower to ensure a green S&P close...

 

Tech outperformed (and Utes closed green) as Retailers, Energy, and Financials dropped early and never bounced...

 

Meanwhile, Speculators have never been more net long Dow futures...

Notably VIX short positioning was reduced (less short) and aggregate bond futures positioning remains near its longest since 2013 (and aggregate FX futures positioning is near the most USD short since 2013).

Aside from the long-end, Treasury yields fell modestly on the day (belly outperforming the tails)...(NOTE: UK Bank Holiday today)

10Y Yields dropped to 2.15% - lowest since Draghi's June hawish comments.

 

The Dollar Index drifted lower during the US session (extending the Yellen/Draghi losses from Friday) after trading in a very narrow range overnight...

 

The Dollar Index fell below otys 200-week average for the first time since 2014..

 

Gold futures settled above $1300 for the first time since Nov 2016...

 

To the highest close for front-month futures since Sept... (biggest day for Gold in over 3 months)

 

Silver also blew through $17 convincingly, closing above its 200DMA for the first time since April...

 

While gold had a big day, the copper/gold ratio remains notably decoupled from bonds... Gold up more? Bond prices down? Copper crumble?

 

Finally, of course, the big news today was the swings in the energy complex. While RBOB Gasoline spiked at last night's open, its drifted lower all day and WTI tumbled to one-month lows...

 

There could be some relief as the WTI-RBOB Crack leaked lower into the close...