Despite JPY and bonds not playing along, US equities (courtesy of the squeeze of the "most shorted") had rallied mightily this morning. Then, all of a sudden - reality hit with some rather ominous-sounding threats from Russia:
- *RUSSIA SAYS WILL RESPOND TO BROADER U.S., CANADA SANCTIONS
- *RUSSIA SAYS FORCED TO RESPOND TO 'UNFRIENDLY ACTIONS'
- *RUSSIA SAYS SANCTIONS 'NOT OUR METHOD'
So if 'sanctions' are not their method? Then what is? It seems that uncertainty was enough to spook bonds (yields plunged) and JPY (strength) and take the shine modestly off of VIX/Stocks.
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