Odd day. Low volume, small range in stocks. Good macro. Some questions over just how 'miraculous' Trump's tax plan will be for the middle-class... but the day's trend across FX, bond, and commodities was set early on when Asia closed and dollar-sellers, bond-buyers, and precious-metal-purchasers came back to play...
Risk is "Contained"...
Tech stocks disappointed today (Nasdaq was red until the panic-buying into the close) as Trannies outperformed...new record for Russell 2000, S&P and Trannies
VIX was clobbered again desperate to keep S&P green above 2507.5...
Value slightly outperformed Growth today...
While most major stock indices ended green today, we note that "high-tax" stocks actually underperformed, wiping out yesterday's exuberance...
And while most sectors clung to a slight gain, Retailers were under pressure...
And FANG Stocks ended in the red...
Treasury yields were mixed on the day with the long-end underperforming...
And while US Treasuries stabilize, we note that 10Y JGBs are back near the 'BOJ Panic' 10bps yield limit levels (having unleashed unlimited buying in Nov, Feb, and July to stop the selling pressure)...
10Y Treasury yields ended the day unch as buyers arrived once Asia closed...
The Dollar Index rolled over today after Asia closed (first down day this week)
The question is what happens next?
Bitcoin closed marginally lower after yesterday's big day...
Gold managed to close green (barely) after rallying non-stop from Asia's close...
Don't forget that after tonight's close in China, it's Golden Week and we know what happens to gold...