Get Your Convergence Hats Out
Time to short the ES, long the AUDJPY. With nothing except momentum (and grotesquely mutated at that) working right now, the recent batch of horrible news only managed to push stocks about 8 points rich to intrinsic. It seems the beta chasing levered play is getting exponential, with corerlation desks now applying multiple of leverage to underlying correlations that were not there before, explaining the disproportionate surge in the ES compared to the move in AUDJPY. Which is why for those willing to test out today's increasingly broken market, the time to put today's FX-risk convergence trade on is now.
P.S. Whatever you do, don't look at the massacre happening right now over in EURCHF land.