Crude Crushed, Dollar Dumps As Bonds & Bullion Bounce

Chinese currency vol exploding, US labor market deteriorating, and oil tumbling...

 

Bonds seem to have got the message...

 

Bonds and Bullion beating stocks so far this year...

 

But global financial market stress has collapsed to its lowest since just before China devalued the Yuan in August 2015 and sent markets turmoiling...

 

Despite Yuan volatility near record highs...

 

Only the Nasdaq managed gains today (record highs)... stocks closed weak...

 

Healthcare and tech outperformed today with Energy the laggard (and Utes down despite lower rates)

 

Healthcare Sector ETF is up 5 days in a row and just brome abvove its 200DMA...

 

Stocks erased most of the post-payrolls gains as gold leads the way...

 

Nasdaq continues to be the year's big winner with a new record high today (and Trannies the loser along with Small Caps)...

 

Goldman has gone nowhere in a month...

 

"Most Shorted" stocks seem less under attack than the opening days of the year...

 

Breadth remains unsupportive...

 

VIX briefly tagged 12.00 today before fading lower but ended the day higher overall with 19,900 the new 20,000 for The Dow...

 

As a reminder, SVXY Puts (bearish bets on the inverse VIX - in English - levered bearish bets on stocks) have never been higher...

 

Bonds bounced back notably today with 30Y back below 3.00%... (most of the curve down 4-5bps today)

 

Perhaps not a total surprise given the stunningly one-sided positioning across the bond complex...

 

Notably the entire Treasury curve (even 2Y barely) is now lower on the year...

 

Cable sold off notably on Theresa May comments early on but AUD, JPY, and EUR all rallied against the greenback as US opened, dragging the USD index lower on the day...USD down 6 of the last 8 days

 

Yuan crashed again erasing half of the gains durng the massive short-squeeze last week...

 

And the peso slipped lower amid more chatter of automaker moves...

 

Worst day for WTI Crude since July 2016...

 

Gold is now back above Fed rate-hike levels (though Silver is lagging)...

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