BTFDe-Escalation

VIX-slamming, USDJPY-ramping, BTFDe-escalating muppetry and we end the week near the highs with the S&P and Trannies comfortably green YTD (though notably underperforming gold still). Treasuries were sold hard today (7Y +10bps) as the D word was bandied about by the politicians (while in reality de-escalation was anything but what was happening), but the 5s30s still flattened modestly further. 10Y saw one of its worst days of the year and yields pressed up to their 200DMA. Gold and silver were flat to modestly lower as copper and oil limped higher. FX markets were relatively calm as the USD pushed higher on the week (+0.5%). Stocks closed weak into the close but after 3 days of ramp, it's hardly surprising.

 

It seems the President's less exuberant belief in the De-Escalation was not liked by the market...

 

Another day another ramp job but a weaker close...

 

But from the US Open today things are not quite as exuberant...

 

As we close this shortened week, YTD stocks remain laggards of bonds and gold...

 

Year to date, the S&P and Trannies are green but Nasdaq and Russell and Dow notably red still...

 

USDJPY led stocks...but stocks close ugly...

 

VIX was slammed...

 

Treasuries were monkey-hammered today...across the curve

 

As a flattening yield curve is now the excuse to BTFD...

 

and 10Y yields jammed higher to the 200DMA...

 

Credit does not seem as excited either about the "d" word...

 

In commodity land, safe haven PMs were sold and growthy excitment was bid...

 

Charts: Bloomberg

Bonus Chart: Weibo stick-saved or the entire Alibaba derivative trade is fucked...

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