Treasuries rallied from the pre-open release of inflation data this morning and never looked back (with 30Y unch on the week and 5Y -4bps). Stocks tumbled notably through the US open but recovered as Europe closed hovering quietly around VWAP all afternoon. The rally back in stocks coincided with a drop in VIX which smacked of hedges being lifted and exposure being reduced into the momentum-ignoted strength. Gold and silver saw weakness (though the latter is still +1% on the week). The USD weakened notably as Europe closed with some significant CHF buying. Stocks closed ugly...as VIX was significantly bid (up for the 6th day in a row - and 14 of last 16 days) and the 4th Hindenburg Omen appeared as the cluster grows.
The cluster of uncertainty is growing as the 4th Hindenburg Omen appeared in the last week...
[3]
VIX closed higher for the 6th day in a row again (as it was into end November)
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Stocks dipped from the US open, ripped from the EU close, then dumped at the US close...
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JPY carry was not supportive at all... and correlations have broken
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Anxiety is high and bonds were bid (especially after CPI)
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as was CHF...
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Gold ansd Silver jumped around the US equity open but quickly fell back (and notably appeared to drop into the low inflation print)...
[9]
Clearly, tomorrow's FOMC decision will be the make-or-break on yet another cluster of Hindenburg Omens - but it is obvious that anxiety is high.
Charts: Bloomberg