Stocks Catch-Down To Credit As Silver Surges

We noted yesterday the growing disconnect between stocks and credit - today saw stocks start to play catch-down. High-yield credit (specifically HYG - the bond ETF) has fallen four days in a row - its biggest four day plunge in over 2 months (with today's drop the biggest single-day drop in almost 4 months) amid mega volume. VIX (another notable disconnect) continued to push higher (above 14% for the first time in 3 weeks). Treasuries had been leaking higher in yield on the week (30Y +8bps as FOMC hit) but slid lower as the post-FOMC day wore on. The USD weakness (led by significant strength in CHF and EUR) supported precious metals (and commodities broadly) but not stocks. Silver are up almost 3% on the week (and Gold outperforming USD's implied shift). Homebuilders faded from the open with all the QE-sensitive sectors (Materials, Energy, and Discretionary) all red on the week now. It w...