From Brexit Wounds To Buying Panic (In Bonds & Stocks)

Record low bond yields, Brexit uncertainty, and the biggest crash in home sales in 6 years... BTFD you idiot!!

But "we're halfway there..."

 

Since the Brexit vote, UK's FTSE 100 is now positive and by far the world's best performing major stock market since Thursday's close...

 

China outperformed UK but of the 90-plus major equity indices in Bloomberg's screen, all the Bottom 10 are European...

 

Volume has been non-existent during the bounce...

 

US equities have retraced almost two-thirds of their losses (near Fib61.8% retrace in Dow and S&P...notice that both are now perfectly back to the Brexit bounce highs from Monday

 

From the cash close, S&P Futs jerke 6 points higher top pefectly close at the 61.8% Fibonnacci retracement of the Brexit drop...

 

Leaving Trannies and Small Caps worst since pre-Brexit still but bouncing back...

 

With futures showing better the bounce to some supportive levels...

 

And US equities completely decoupled from bonds, bullion, and cable...

 

Amid a massive short squeeze...biggest since 2011

 

VIX has collapsed in the last 3 days - holding support around the 50- and 100-day moving averages...

 

With the VIX hedge unwinds driving the fear index below its pre-Brexit lows...

 

Just in case you were not conmpletely convinved of what fucking farce this market is - here is NKE, which had a dismal report last night just had its best day in 4 months - swinging from down over 6% to up almost 3% (as index buyers lifted The Dow member)...

 

But while bank stocks have bounced ahead of CCAR, they remain down notably post-Brexit...

 

Treasury yields were mixed today... as 2Y continued to underperform the rest of the curve... but note that the longer-end underperformed late on today as chatter of rate-locks hitting the market ahead of a heavy calendar expected...

 

Driving 2s30s to its flattest since Jan 2008 (recession) but bank stocks didn't care...

 

But 10Y and 30Y neared record low closes...before bouncing late on (with 10Y >1.50%)

 

The USD Index slipped lower again...

 

As the post-Brexit Cable bounce continues...Despite being down hard from the 1.50 pre-Brexit level - the bounce has been imporessive off the 1.31 lows...seems like 1.40 brexit bounce may be target but today seemed to run out of steam quickly..

 

Notably China intervened in it most major form since January overnight to rescue the nosedive in Yuan...

 

Against the weaker USD, commodities all rose on the day with PMs doing well early and then crude melting up later on...

 

Silver topped Brexit highs...

 

Following API last night and DOE today, the machines had only one thing in mind... on yet another NYMEX close ramp

 

Charts: Bloomberg

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