Artist's impression of The Fed statement and press conference tomorrow...
Stocks, Crude, and USDJPY were loving it...
Cash stock indices gapped open then went nowhere...
Equities ran on the back of the algos to the stops at Thursday's pre-3rd Avenue collapse... then faded...
Breadth was not buying it...
FANGs ended the day very weak...
Smith & Wesson was whacked... Revenge?
Equity protection was puked like a bad Chipotle Burrito... (who needs hedges?) Notice the lack of beta in stocks even as VXX was slammed lower in the last hour...
IG credit continues to underperform this week...
The US high-yield market was on a firmer footing Tuesday with buying from both Exchange Traded Funds and institutional buyers - but market participants said it was far too early to say with any confidence that the recent rout in the asset class was over. The HY CDX 25 was 1.25bp higher at 100.6bp, according to Tradeweb, and cash bonds up to three points higher, a day after the Bank of America Merrill Lynch high-yield index breached 9% yields for the first time in four years. To be sure, the market is still wincing from the slap given by the Third Avenue junk fund redemption freeze and liquidation announced last week.
Treasuries continued to get dumped...note again that the selling was dominated by the European session (smells of China dumping through Belgium?)
The USDollar was heavily bid from the early morning...
Commodities were mixed once again. Depsite a surging USDollar, PMs flatlined, copper crashed and crude soared...
Crude algos ran the stops again...
Nattie collapsed to near record lows...
Charts: Bloomberg
Bonus Chart: A Gentle Reminder of The Last Pre-FOMC Statement Ramp...