As if by magic, a boring Beige Book was all the algos needed to slam VIX and lift stocks to the magical unicorn level of 2,100 for the S&P 500... Because why not dump protection ahead of OPEC, ECB, and Payrolls - makes perfect sense really...Sadly, the machines just couldn;' hold it there for the close
Simply put, today's ubiquitous V-shape recovery in stocks is yet another example of the only way to win...
Futures show the deja vu-ness of today's deep V...It appears PBOC and ECB are sellers (need turmoil to stop The Fed) and The Fed is the VIX-selling, stock-buyer of last resort (we must hike to have ammo for when shit hits the fan)...
Since Friday, Dow is the biggest loser as Small Caps squeeze higher. S&P and Trannies scrambled baxck to unchanged and Nasdaq clung to gains for the 7th straight positive close in a row - the longest streak in 15 months
Another day, another short squeeze...
As the yield curve continues to flatten...
Credit markets were not buying this bounce...
Treasury yields dropped on overnight economic weakness then rose on US dismal data...makes perfect sense...
The US Dollar index drifted lower on the day as JPY surged after its dismal data dump overnight (Note Cable weakened further as more Brexit polls hit)
Commodities were once again a mixed bag, despite the USD weakness: Silver, Gold, and Copper slid as oil rebounded on more OPEC headlines...
Algos went wild in WTI - running stops around all the big figures...
Charts: Bloomberg
Bonus Chart: Looks like July it is...