VIX Spikes Most In 7 Days As Tech Jumps, Dow Dumps

For Dow traders...

 

Ugly close but Nasdaq soared, S&P red, but Dow dropped hard after an exuberant open...

NOTE - Both rebounds in markets today were from the same headline on Larry Kudlow!!

 

The Dow fell back below its Fib 61.8% retrace line and notably made a lower-high...

 

Bank stocks extended Friday's gain with Goldman jumping on the heels of confirmation about Blankfein's successor...

While Nasdaq ripped, helped by chip stocks but FANG stocks rolled over (mainly due to NFLX)...

 

It's an OPEX week - so historically that means a collapse in vol - but VIX jumped back above 16 today following Friday's flash-crash (its first rise in 7 days)...

 

Although the put-call ratio has normalized to pre-crash levels...

 

And so has the VIX yield curve...

 

High yield bonds fell in price once again as did IG bonds, extending their losing streak. Last week was the 10th straight week that corporate borrowing costs have risen, the longest streak since 1994.

 

Treasury yields tumbled on the day, after two strong auctions, erasing Friday's hype...

 

With 30Y back below pre-payrolls levels...

 

Breakevens tumbled from the US cash open...

 

The Dollar Index tumbled for the second day, erasing Thursday's spike higher...

 

Crude was worst as gold scrambled back to unch, despite the drop in the dollar...

 

WTI/RBOB sank on the day, but rebounded in the afternoon...

 

Gold roundtripped from its early morning plunge...

 

Cryptos had another ugly day (although Bitcoin remains green from Friday's close)...after some notable buying overnight...

 

As many start to wonder if Bitcoin is really leading The Dow...