Big Blue Blasts Dow To (Another) New Record High As Chinese Yield Curve Inverts

Don't fight The Fed or The Machines...

The Dow is now the 2nd most overbought in 22 years... 3rd most overbought in 62 years

 

Kicking off The National Congress last night, Xi's words did not manage to inspire the bond market as China's yield curve inverted once again...

 

But thanks to Big Blue's best day in almost 9 years...

 

The Dow soared over 150 points, now above 23,100 (IBM +100 Dow pts, Goldman +45 Dow pts)

 

Notably there was an odd flash-crash 'error' in The Dow's VIX today...

 

As once again, Dow and Dow VIX rose together... something has to give...

NOTE - the decoupling between price and risk occurred when China intervened.

On the day the Nasdaq and S&P were unchanged as Trannies topped the surge in The Dow...

 

But Trannies remain red on the week as The Dow leads by a mile... (NOTE - some weakness into the close)

 

VIX found support at 10.00... and note the mini-spike in VIX into the close (random walk?)

 

FANG Stocks sank into the red on the week...

 

But healthcare stocks didn't despite yesterday's rally headlines being destroyed today...

 

Treasury yields rose on the day...mostly driven by European weakness...

 

The yield curve steepened modestly on the day, but remains at 9 year lows...

 

Another day, another pump'n'dump in the dollar index...

 

Bitcoin got hammered early on ICO news but once everyone realised it was old news, the cryptocurrency ripped back to 5400...

 

WTI and RBOB both initially sank after DOE data showed a mixed inventory picture and collapse in production, but by the close, both were in the green...

 

Gold and Silver extended their losses (below $1300 and stalled at $17 respectively) after bouncing after the China's Golden Week...

 

Finally we note that 'crash' risk (SKEW) has never been this high relative to 'normal' risk (VIX)...