This seemed appropriate after last night's BOJ and PBOC efforts and today's oil idiocy...
And then this utter farce...a 1% surge in the S&P and 4 point crash in VIX in the last 30 minutes!!
[10]
The VIX front-end term-structure "normalizes" out of backwardation - but back-end remains stressed...
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As this was the longest period of backwardation since 2011's plunge
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On NO VOLUME!
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So let's start with stocks - which CNBC reflected on as "back to normal" with today's 275 point rally in The Dow
Thank you very much-o, Mr. Kuroda... As the media began their pre-open jawboning this morning they had the backdrop of a triple-digit gain in The Dow to support any and every bullish - everything's fine - mantra - all thanks to a 120 point rip the moment Japan opened... Until the l;ast 30 minute spanic buying onmthe back of VIX clubbing, stocks went nowhere...
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But of course, no one cares - its tonight's news headlines that count - and Trannies are up 2% as
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But on the week, it all remains red...
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Which dragged Nasdaq barely into the green year-to-date!
Do not get too excited...
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VIX dropped 15% today - its biggest drop in almost 2 months
20 minutes to eVIXerate
— zerohedge (@zerohedge) September 2, 2015 [18]
We note VIX was crushed around the market break mid-afternoon and VXX was presured to the lows of the day (first non-short-squeeze in a few days...)
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After Europe closed, HY bonds were not loving it...
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Bonds were battered again during the US session leaving 30Y 6bps higher on the week (even as stocks remain well red)...
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but we note the collapse on 2Y swap spreads (and 5Y) continues...
[22]
The US Dollar drifted higher on the day but remains lower on the week - notably quiet day in FX markets (especially JPY anchored at 120)...
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Gold was modestkly weaker but silver jumped. Crude and Copper were joined at the hip in this morning's melt-up...
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Silver was an illiquid mess....
[25]
So let's just have a look at the day in Crude!!! (just like yesterday we ripped into the NYMEX close then faded)...
[26]
With China closed for the rest of Parade Week, we wonder what market gets monkeyhammered tonight? (Don't forget FTSE A50 Futures trade in Signapore ;-)
Charts: Bloomberg