Stocks & Bond Yields Surge'n'Purge Thanks To "Asian Intervention Week"

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...


Yes - Yes you did!

  • 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)...


An afternoon ramp dragged everything green for the day... Of course - we warned the bears!!!


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!!


Energy was the week's loser while Tech and homebuilders surged...


Once again VIX was plugged into the close to ensure a green close...


Once again though, The VIX Slam has lost its momo mojo...


Put-Call ratios (average over the last 2 weeks) are at their hghest since March 2007


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)


The USD Index has fallen for 6 straight days - its longest streak since April... as EUR (and AUD) strength handily beat JPY weakness...


With a 'Death Cross' looming amid a coiling USD Index making lower highs...


Despite the week's USD weakness, commodities (in general) were lower (with WTI worst)... Gold down 3rd week in a row.


Oil and Vol remains notably decoupled post-Andy-Hall's month-end malarkey...


The exception being copper... Which lifted thanks to China intervention early in the week...notice anything odd?


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...


Charts: Bloomberg

Bonus Chart: Brazil Banged Back To 2005...