Market and Credit Update

This is obviously a fast moving market and very nuanced, I think the last time I recall a market like this was late 2008, early 2009 in terms of the nuances and the sentiment back and forth.

Credit markets are not acting well at all since last Thursday's CDS roll, it seems there were few longs who carried positions forward. We are seeing credit deteriorate in the US and Europe.

As for High Yield credit, the Corp. HYG looks like this...

 In blue vs the SPX, it is now below the QE3 announcement area with the 20th (last Thursday being the CDS roll), you can see deterioration since the CDS roll.

 Junk High Yield is also below the QE3 announcement as the SPX remains higher, although very volatile on the day.

It doesn't look like the FX arbitrage is causing this volatility, although it may be contributing to it, it's not the direct cause.

In Europe, stocks and credit are diverging badly...

European stocks are in blue, everything else is European Credit, that's quite a divergence and if I have to pick which I trust more, it's going to be the credit market's every time.

I'll get the averages up, I also see GOOG continues to trend lower intraday. I'll try to get a look at some of the more important stocks as well as oil/gold.