Stocks Sink On 'Quad Witch' As Dollar Suffers Worst Week In 8 Months

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One. Big. Squeeze…

 

It was quite a week for ‘uncertainty’ as Europe’s VIX crashed to record lows, and FX and Rate vols plunged after the Fed move and Dutch elections…

 

Small Caps were the week’s biggest winners (and Trannies the losers)… The Dow clung to the week’s gains

 

Financials had the 2nd worst week of the year – erasing the Trump Congress speech ramp

 

Heading into the quad witch close VIX was well bid (after the panic selling around the open), busting the plan to break The Dow back above 21,000…

 

Post-Fed, Gold is the biggest winner…

 

Notably, after the worst week in 13 months last week, HYG managed the best week in 3 months, boucing off the 200DMA again…

 

Today’s record low inflation expectations sent bond yields and the dollar tumbling to post-Fed lows…

 

Some context for these moves… The Dollar is back near post-election lows and the 30Y yield stumbled once again at 3.20%

 

On the week 2s10s notably flattened…

 

This was the Dollar’s worst week in 8 months…And AUD, JPY, and Cable strength dragged on The Dollar Index…

 

The USD is down over 3% in Q1 and is unchanged since March 2015…

 

The Mexican Peso surged this week, erasing the entire post-Trump decline…

 

With the debt ceiling deadline now passed, we note that USA sovereign risk has not moved yet, but Russia (which is junk rated but saw a positive outlook upgrade today) is now trading tighter (less risky) than investment grade Italy…

 

This was gold’s best week in the last six weeks… (silver also bounced after 2 down weeks)…

 

Gold and Silver closed above key technical levels…

 

Finally, this…

 

And here’s why Nasdaq hit a new record high…

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