Today...
The Yellen effect pic.twitter.com/ogQgxINN2r
— Morris Cabrioli (@insidegame) December 14, 2015
Today's focus was on credit markets - rightly - as the contagion spread to IG markets...
But it started when China devalued the Yuan yet again...for the 6th day in a row - and in growing size - PBOC fixed the Yuan weaker to its weakest since July 2011
And The National Team stepped in to save Chinese stocks again...
The equity market "went nuts" just after 10am ET this morning with a wild algo seeming wreaking haov in S&P Futures and the VIX ETF complex...
But, despite the carnage in credit, VIX was crushed in an effort to prove to 'mom-and-pop' that everything is awesome...
But USDJPY did the heavy-lifting as stops were run to 121...
Leaving stocks soaring into the close (Trannies and Small Caps remained red)...
Year-to-Date, it's ugly with only Nasdaq holding any gains...
And the last time this kind of vol hit, The Fed folded...
Trannies entered a bear-market (down 21% from the highs)...
Stocks and credit did not agree...
Treasury yields rose notably today (China selling? or liquidation flows from bond redemption requests)
The US Dollar closed unchanged against the majors - dumping into the European close and rallying all the way back this afternoon...
Commodities were mixed today but as the USD rallied after Europe's closed so they all leaked lower (despite crude's exciting algo ramp this morning)...
Crude prices rebounded... running stops at the lows and highs...
After Speculative crude shorts hit a new record high...
Charts: Bloomberg