Equities Coil Despite USDJPY Turmoil As Bullish Stock Speculators Hit 16-Month Highs

Today's ultra-low volume, ultra-low-range equity market can be summed up thusly...

 

Before we get started, just two quick charts to shut the mouths of all those proclaiming this is a hated rally and that sentiment is shitty... it's not!

Net speculative positioning for S&P 500 futures is at its highest since Feb 2015 as the major short position of the last few months has been unwound off the February lows...

 

And speculative shorts in VIX (bullish stocks) are at 3 year highs...

 

Which is ironic as VXX (VIX ETF) shares outstanding continue to explode...

 

US equity markets traded in a very unusually narrow range hugging VWAP all day...

 

With volume abysmal...

 

Trannies underperformed on the day... Notice once again that buying presure occurred as EU closed and selling resumed when NYMEX closed...

 

And Trannies are sending another unhealthy signal for the Dow Industrials...

 

Stocks held up despite The G7-hangover in USDJPY...

 

But the Long Bond remains best since The FOMC Minutes...

 

Notably equity risk has been rising the most off the April VIX lows with other asset classes seeing vol drop during the same time...

 

Treasury yields were mixed today but continued the curve flattening with 2s and 5s higher in yield and the rest of the curve lower...

 

The USD Index fell for the first time in 8 days, led by JPY strength and reversing earlie rgains once Europe closed...

 

JPY strengthening again after hopeful decline into this weekend's G7...

 

Commodities were relatively quiet with gold and copper flat (as crude pumped and dumped)...

 

Despite some panic buying at the US equity open, WTI crude fall for the 4th day in a row as Canadian producers prepare to resume more production at oil-sands sites after wildfires in Alberta caused loss of output. Crude traders watching “for news of a recovery in Canadian oil sands production as favorable weekend weather may have allowed further progress in containing wildfires,” Tim Evans, energy analyst at Citi Futures Perspective in New York, says in note. “Reports of the return of Libyan exports” also weighing on mkt, according to Phil Flynn, sr mkt analyst at Price Futures Group in Chicago

 

Charts: Bloomberg