Bonds & Bullion Bid As Dow Dumps To 4-Month Lows Amid Geopolitical Chaos
by Tyler Durden
ZeroHedge.com
08/07/2014
A day dominated by geopolitical headlines saw stocks hit 4-month lows, gold jump to 3-week highs, and bond yields tumble to 14-month lows. The Dow made new “sell in May” lows today, now -1.5% from end-April (joined in weakness since then by the Russell). The S&P 500 broke its 100-day moving-average (and did not bounce) as USDJPY broke the critical 102.00 level. The Dow stalled at its 200-day moving-average (16343). 10Y Treasury yields continued to plunge pressing a 2.41% handle – new 14-month closing low-yields. Gold jumped above $1315 closing near the highs of the day (and silver above $20). The USD ended up on the day but JPY carry unwinds continued. VIX broke back above 17 (and remains inverted for the 10th day in a row). Equities continues to catch down to high-yield credit’s weakness. A late-day buying-panic, sparked by VIX-slamming, was triggered as S&P futures broke 1900.
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