Late Friday Same Old: Volume Plunges, Stocks Drift Higher, Diverge From Bonds
The late Friday afternoon autopilot has kicked in: with carbon-based traders hoping for an early start to one of the last workable Hamptons weekends, volume has plunged, after a promising start. The result, as always, is a gradual meltup in stock, which as has been the case recently, now diverge from bonds on a regular basis. Yet, as we showed previously, the convergence earlier this week was dramatic, and fully on the back of the algos. Take opportunities like this to short or at least, bet on convergence: short stocks, short bonds.