It's Tuesday - so bonds are red, idiot. Trannies (-0.9%), rather unusually, underperformed and on the back of yesterday's Russell 2000 weakness suggests beta-chasing muppets are less engaged. After yesterday's USDJPY recoupling, Treasury yields pushed higher once again and almost recoupled with stocks strength from last week. 10Y yields are up 12bps in the last 2 days - the worst 2 days in almost 7 months. The USD leaked modestly lower led by EUR strength. Copper gave back all its gains from the weekend's exuberant China PMI and oil, gold, and silver flatlined. VIX remains total decoupled from this last few days' exuberance. Volume was average - fed by the early plunge but faded rapidly as we levitated. With regard to the red close for stocks on a Tuesday: it is rumored that a wrong seasonal adjustment factor was applied to today: it was really a Wednesday.
Quite a day for stocks... Trannies worst Tuesday in 4 months
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Today's bounce in the Russell 2000 was off the 200DMA once again
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It's not just US equities.. and not just 2014 that the idiocy of the Tuesday effect is occurring...
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If 2014's historical performance is anything to go by, the rest of the week will be good for bonds...
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USDJPY already recoupled and now TSY yields...
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But VIX remains grossly decoupled from stocks as it appears the record highs are being accmpanied by plenty of protection...especially ahead of Draghi
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Treasury yields were a one-way street - the worst 2 days in 7 months...
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Copper dropped on the China PMI miss and commodities flatlined in general...
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Charts: Bloomberg