In case you were unaware of what happened this week... this should explain it... The 3 Storms of Li, Zhou, and Kuroda stepped in!!
Before we get started - let's get this off our chest:
Asia Intervention Week anyone?
- ChiNext (+11.1%) - best week in 4 months
- Shenzhen Composite (+6.4%) - best week in 2 months
It looks like they finally killed it...
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Yes - Yes you did!
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- Nikkei 225 (+2.7%) - best week in 2 months
- Copper (+6%) - best week in 4 months
- Offshore Yuan (+0.9%) - best week in 6 months
- USDJPY (+1.3%) - biggest jump (JPY's biggest weakening) in 4 months
- USD Index down 6 days straight - longest streak in 5 months
That bled over into some US markets:
- VIX (-11.6%) - biggest weekly drop in 2 months
- Dow Transports (+3.1%) - biggest week since last week of July
- S&P Tech Sector (+2.75%) - best week in 2 months
- S&P Biotechs (+5.5%) - best week in 2 months
* * *
Equity futures markets provide perhaps the most clarity on the week's swings (since most of the action takes place before and after the US sessions)...
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An afternoon ramp dragged everything green for the day... Of course - we warned the bears!!! [12]
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And so from Friday, cash equity indices all closed green for the week... Trannies and Small Caps soared over 3 weeks - the easiest to short squeeze!!
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Energy was the week's loser while Tech and homebuilders surged...
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Once again VIX was plugged into the close to ensure a green close...
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Once again though, The VIX Slam has lost its momo mojo...
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Put-Call ratios (average over the last 2 weeks) are at their hghest since March 2007
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Treasusry yields massively round-tripped on the week... 2Y yields ended very modestly lower with 30Y up just 7bps (well off its 3.037% highjs on 9/9)
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The USD Index has fallen for 6 straight days - its longest streak since April... as EUR (and AUD) strength handily beat JPY weakness...
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With a 'Death Cross' looming amid a coiling USD Index making lower highs...
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Despite the week's USD weakness, commodities (in general) were lower (with WTI worst)... Gold down 3rd week in a row.
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Oil and Vol remains notably decoupled post-Andy-Hall's month-end malarkey...
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The exception being copper... Which lifted thanks to China intervention early in the week...notice anything odd?
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Copper had its best week (up almost 6%) in 4 months... the last time it had a rip-fest week like this marked the early May highs and led to a serious decline...
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Charts: Bloomberg
Bonus Chart: Brazil Banged Back To 2005...
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