Tuesday, June 23, 2009

Daily Market Recap

Strange day, with VWAP reversion ruling on no volume as has been the norm over the past 3 months.

Liquidity was so hard to come by that 2,000 bps TICK swings were almost a norm in the second half of the day, yet the SPY closed virtually unchanged.

Someone lit a fire under financial companies after the NYT leaked a rumor that UBS had arranged a deal with the DOJ which later ended up being false. Doesn't matter: investors needed a leading sector and were happy to dump money into financials, on above average volume, with no fundamental reason.

2s10s gyrated wildly after the $40 billion 2 year auction which cleared at a 1.151% yield vs. a 1.202% expected, and closed practically unchanged.

The only notable divergence was the high beta underperfroamnce which lately seems to correlate highly with overall down days. IWM - SPY closed at the days lows.

Lastly, this is indeed the RIP for the green shoots. The ABC weekly Consumer Confidence Index is back to 2009 lows.

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