So to summarize - the former national security chief agrees to testify against the sitting president and The Dow drops 40pts...

China stocks were mixed with CHINEXT surging overnight but CSI300 ending at the lows (worst week in 2017)

 

Europe saw stocks and bond yields notably lower...

 

But for US equities, overnight weakness (as Asian tech wrecked) was quickly dismissed into the US open thanks to Daines and Johnson saying "yes" to the tax bill. Everything was awesome for a while and then the Flynn headlines hit, plunging stocks lower. But then luckily, Europe closed and McConnell sais GOP had the votes for the tax bill and stocks took off again...

 

 

But futures show the real swings during a chaotic week

 

Today's big event was Flynn's headlines which sparked a bid for safe-haven bonds and bullion, but that faded as tax vote came and went...

 

VIX spiked to 3-month highs but was monkey-hammered lower into the close in a desperate attempt to get The Dow green

 

And remains hugely decoupled from stocks...

 

After 10 straight days of short squeeze, 'Most Shorted' stocks actually dropped today.. barely...

 

Equity market momentum factor suffered its biggest weekly loss since the election (and best week for Value stocks since the election)

 

Obviously, this week was all about taxes (this was the biggest jump for 'high tax' corps relative to 'low tax' corps in history.

 

Tech stocks were worst on the week as Retailers and Financials ripped oddly together higher...

 

Banks outperformed on the week despite a collapsing yield curve...

 

FANG Stocks worst week since June... Semis plunge the most in 2017 (after 11 weeks higher in a row)...

 

And the tech wreck hit Asia too...

 

Notably, while stocks (aside from Nasdaq) rallied on the week, high yield bonds did not...failing to get back above their 200DMA and fading notably today...

 

And remain notably decoupled from stocks... (notably today's weakness was in Consumer Staples and Financials and more broad-based)

 

Nasdaq and bonds have recoupled...

 

Nasdaq and FX carry recoupled...

 

Bonds were well bid today with the long-end massively outperforming...(leaving 30Y yield lower on the week)

 

Crashing the yield curve to new cycle-lows (back at Oct 2007) - 3rd weekly flattening in a row...

 

As one witty gentleman noted - if Mueller files charges against 3 or 4 more people, the curve will invert.

The Dollar Index managed to scramble back into the green for the week (despite a big plunge on Flynn today) - after 3 straight weeks lower...

 

All major commodities were lower on the week - note that gold (and crude) briefly tagged unchange on the Flynn headlines before being sold...

 

Gold ripped on the Flynn headlines, tagged the 100DMA and then tumbled...

 

Finally, Bitcoin ended the week up 31% - The best week since Dec 2013...Despite a huge drawdown...