What every Biotech bubble-owner, Greek FinMin, and Chinese housewife is asking right now... it seems everybody is shaking down everybody, creditors shaking down Greece, Greece shaking down local governments; and "markets" shaking down their central planners with these brief reminders of what happens if they don't get their money...
It all started early...with a pump off the China QE news and a dump seemingly triggered on USD weakness post-Greek FinMin Varoufakis "containement"...
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The cash indices just could not hold any BTFD ramps... 7 Dips bought and failed... Dow outperformed (AAPL), Small Caps underperformed...
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Nasdaq was Knackered by a breakdown in Biotechs... down 7.5% from Friday highs and back below its 50DMA...
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This is the first close below the 50DMA since October...and worst day in over a year... when Janet Yellen warned! (not we mnade a lower high before this dip for the first time)
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And The Dow was saved by AAPL.. ahead of earnings...
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Treasury yields held a fairly narrow range - higher yields into the US open, then a rip lower as the dollar dropped.. then weakness again after Europe closed...
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The Dollar dumped when news of Varoufakis 'containment' hit but bounced a little after Europe closed... (note CAD and AUD strength around 10ET... as commodities soared)
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The Dollar Index touch ed a one-month low before bouncing...
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Commodities surged as the dollar dumped then stabilized...
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Notice the pattern in silver around the US open.... didn't quite worj that way today...
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Whether the catalyst was Varoufakis knock on efgfects into the dollar or this was driven by a realization that China QE means hard assets get bought next as China's Mo> suggests is unclear... but for sure the flows were heavy and aggressive.
Charts: Bloomberg