It's just not fair!! Today started off so well with Monday's late exuberance (which now looks like front-running the Tuesday gift) extending overnight through Asia and Europe and pushing beyond the open in the US. Then we started to fade - no news, no catalyst, just S&P futures tagged the ledge level from Friday's late dump. As the day progressed blame for the weakness in equities was put at Esther George's 'speechless' hawkishness - but Treasuries rallied on that weakness, hardly a sign of Taper concerns. We suspect the selloff was as much about the BoJ REIT-buying news as it was simply the retaliation of yesterday's bounce. Of course, 330 Ramp Capital played their part with some mild JPY weakness momentum ignition (and VIX was slammed), S&P futures scrambled up to VWAP - and stopped... This was the worst Tuesday in over six months... but as Maria B says "Anyway you look at it, this is a victory!"
The last 22 weeks of Tuesdays! It's over!
[4]
Will the Tuesday exuberance mean-revert?
[5]
Totally normal ramp to a totally human VWAP level... makes perfect sense... and from that point on it was all downhill!!!!
[6]
and in close up - nothing unusual here at all...
[7]
Credit markets had quite a day (major range and weakness)...
[8]
But elsewhere, asset classes were in general more subdued. Relative low ranges in FX markets...
[9]
The risk-asset proxy CONTEXT shows today's equity market movement was considerably more noisy than FX, rates, and commodities... the big shift occurred betwen US open and EU close once again...
[10]
It seems 3:30 PM Ramp Capital
is at least trying as the rumor is that the Tuesday Total Return Fund
has just been slammed with SAC-like redemption requests
Charts: Bloomberg and Capital Context