Trannies Soar Most Since 2001, Treasury Yields Tumble, Dollar Dumped

After a brief pause, everything is awesome again...

 

Trannies exploded higher today (2nd best day since Trump election)... S&P record high, Dow above 25,500 for first time... and on and on...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod15.png

 

Despite equity market exuberance, VIX rose on the day, testing back above 10...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod14.png

Today was among the biggest short squeezes in recent years...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod16.png

 

YTD, Trannies are up 6.5% (up 8 days in a row - no down days in 2018 yet)... and Nasdaq is still soaring too...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod2.png

This is the best start to a year for Trannies since 2001.

 

The gains in Trannies were driven by upgrades across the board for airlines...this is the biggest 2-day gain since July 2016, busting out to new record highs...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod1.png

 

Credit markets collapsed to their lowest risk since Feb 2007...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_ig.png

Which is fascinating as debt soars...

https://www.zerohedge.com/sites/default/files/inline-images/20180111_ig1.png

Treasury yields tumbled on the day as China denials and a super strong 30Y auction put rest to any 'end of bond bull is imminent' arguments for the day...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod6.png

 

Yields do remain higher on the week though...

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod7.png

But saw another notable flattening in the yield curve...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod8.png

 

 

 

The dollar plunged again (biggest drop since Jan 2) to the lowest close snce 9/22/17...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod4.png

Most notably volatility is picking up in FX land - Something is happening in China...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod5.png

As Bloomberg notes, offshore yuan strengthened past 6.50 level, on track to erase week’s loss as the U.S. dollar weakened on weaker-than-expected economic data and stronger oil prices. CNH traders downplay impact from removal of counter-cyclical factor in fixing; offshore yuan now at strongest in three weeks on a closing basis.

 

Gold inched higher on the day as the dollar tumbled, oil gained...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod10.png

 

And while airlines soared so energy prices also soared (makes sense), with Brent testing above $70 and WTI above $64.50... then fell back to close unchanged...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod11.png

Cryptos had a noisy day after tumbling on a number of South Korea headlines with negative connotations, but Ripple ramped on news of a deal with Moneygram...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod3.png

 

Notably the Bitcoin-Trust-to-Bitcoin-Futs arb is coming back in...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod12.png

 

Finally, you are here...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod9.png

 

Bonus Chart: US Macro Surprise data is starting to roll over quite notably (i.e. from an extreme high in optimism, data is disappointing). The last time we were this over-optimistic and data rolled over, the S&P fell 10%...

 

https://www.zerohedge.com/sites/default/files/inline-images/20180111_Eod13.png