"Treasury-selling" Tuesday came and went and for the 2nd week in a row, bond yields rose (+2-3bps) following the 7th losing Monday in a row. Equity markets languished amid dismal volumes but were rangebound all day apart form AUDJPY and VIX-driven pumps to try and close green and keep the Tuesday dream alive (and the running count of new all-time highs). The USD jumped once again as EUR tested lower (near Draghi spike lows). Gold and silver saw a squeeze higher at the open this morning and maintained gains (as fears of CCFD unwinds spread) but copper rose as WTI crude touched 9-month highs then reversed sharply lower. As we forecast this morning, a mid-day VIX plunge and late-day JPY tumble (and another VIX plunge) sparked just enough exuberant buying panic among the machines to manipulate stocks to a green close and save the Tuesday plan. Stocks have fallen only 2 days in the last 3 weeks...
The S&P 500 never made it green but Nasdaq and Dow crept back positive...
Whocouldanode?
Don't worry though: the pattern is too well-known and practiced by now, and we fully expect USDJPY levitation to pick up shortly, which is the only signal ES-algos need, trampling over any kind of newsflow both good and bad, and leading to yet another all time record high which it goes without saying is completely detached from any underlying reality at this point and at any time over the past 5 years.
A classic dump (on volume) and pump (on no volume) day in stocks...
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VIX was spanked twice to ensure this green close... in high beta NASDAQ (but not quite the S&P)
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and close up on the riggedness...
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What the hell was going on VIX this afternoon...
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The trend remains alive and well that you sell Treasuries on Tuesdays...
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Treasuries closed up 2-3bps, broke above yesterday's tight range then rallied back after the auction...
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AUDJPY was in charge of stocks today...
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Gold and silver jumped at the open and crude slide as copper rose...
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As WTI tagged 9-month highs and was sold hard...
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FX markets had a similar them of JPY buying during the asia session (USDJPY weakness) and EUR selling during EU session (EURUSD weakness)...
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EUR testing near Draghi spike lows...
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Charts: Bloomberg
Errata: An early version noted 7th losing Tuesday in a row for Treasuries - in fact that was 7 losing Mondays in a row.
Bonus Chart: It's Tuesday...
lest we forget pic.twitter.com/Omfmd1I2yx [22]
— Not Jim Cramer (@Not_Jim_Cramer) June 10, 2014 [23]