Silver as an investment

Techs Wrecked, Financials Falter As Korean Threats Spark Gold Gains

Well that all escalated rather quickly…

Brent spiking (Kurds and Korea), Gold spiking (Korea), AAPL tumble (weak orders), FANG bloodbath… large into small and growth into value.

The day's broad activity was driven by North Korean headlines which sparked a bid for gold (and early anxiety over Europe after Germany's election)…

 

Gold regains the lead year-to-date…

 

But Stocks suffered some more serious drawdowns with Tech stocks worst 4-day loss in 3 months to one-month lows… Small Caps reached a new intraday record high early on (and Trannies clsoed green)…

 

Nasdaq VIX Spiked above 16 – back to the upper end of recent trading band but notably not as big a spike as prior tech wrecks…

 

S&P VIX spiked above 11 intraday (back above its 50- and 100-DMA) as S&P lost its 2500 level… but the machines did their best to ramp the S&P back

 

And VVIX (expectations for the uncertainty of VIX going forward) has never been higher relative to VIX…

 

Big switch from growth to value today…

 

And stocks' Momentum factor is now down for the month…

 

FANG Stocks worst day since early June.

 

Facebook's (election-related headlines) and Netflix's (Fox streaming headlines) worst day since Nov 2016…

 

AAPL down 12 of the last 15 days (and down almost 10% from its record highs) closing below its 50- and 100DMA (filling the earnings night gap higher)…

 

Bank stocks continue to decouple from the yield curve…

 

Treasury yields fell on the day on a safe haven bid with more 2s30s flattening…trading died after the kneejerk on korea headlines…

 

Interstingly, the dollar index was well bid today (back to FOMC-Day highs)…

 

Driven by EUR weakness on the heels of Merkel's horrible election outcome…

 

Despite the dollar strength, Gold surged off its 50DMA (and Silver off its 100DMA) back above $1310…

 

WTI Crude surged above $52 (on the back of Kurdish referendum fallout concerns) and RBOB  followed oil prices higher…

 

But Brent spiked to its highest since July 2015 with a massive backwardation and dramatically rich to WTI…

 

Finally, Bitcoin also spiked on the North Korean headlines…

 

Well that didn't work… yet…