Overheard in China last night...
It all started with China... after droppiong 100s of billion of Yuan to "stabilize" the market already, why not do some more...
[9]
On the lowest volume EVER!!!
[10]
Japanese stocks were utterly insane!!!
[11]
And everything lifted with it... FOR ANYONE WHO SAYS CHINA DOESN'T MATTER - YOU'RE WRONG!!
[12]
European and US stocks followed...
[13]
Trannies won the day overall but it was a one-way street after Europe closed. Dow closed +380 points!! (12 of the last 14 days triple digit change)
[14]
"Out Of Correction"
[15]
Note - Dow Futures back to the 50% Retracement level... and making lower highs...
[16]
VIX term structure remains in backwardation, VVIX (vol of vol) holding above 100, and VIX skew is extremely high..
[17]
Here is a thought though - BABA was a massive hedge fund hotel... so one wonders how much of this move today is covering Momo names and unwinding the index hedge against them...
[18]
NOTE that NFLX weakness weighed on the S&P (on concerns AAPL announces streaming video competition)
FANG is F##ked...
[19]
And GRUB snubbed to record lows as Amazon starts restaurant deliveries...
[20]
Crude & Copper soared, Silver also ripped, gold was flat...
[21]
NOTE - Brent Crude Implied Vol surged to 60 - its highest since 2009...
[22]
And USO and OVX remain nmotably decoupled after the month-end melt-up...
[23]
As Stocks and USDJPY danced together all night and all day... until tyhe last 30 when momo was ignited and stock were on ther own with VBIX
Dear BOJ: 120 needs a gentle nudge.
— zerohedge (@zerohedge) September 8, 2015 [24]
But The US Dollar ended the day modestly lower from Friday (with AUD and GBP strength countered by CHF and JPY weakness)...
[25]
Treasuries were dumped unceremoniously - though we do note that the calendar for corporate issuance is extremely heavy and the velocity of today's move suggests heavy rate-lock pressure...
[26]
This is the highest closing print for 30Y yields in 6 weeks - though remained below the crucial 3.00% level all day.
Copper was the big story of the day - rising 5.4% on the day - the most since May 2013 - and busting above its 50DMA after crashing following its break below in May...
[27]
Charts: Bloomberg