Don't celebrate quite yet...
Thanks to MMM and CAT (150 of The Dow's 170 points today)...
The Dow is massively outperforming today...
And even more so on the year...
In fact this is the great Dow outperformance over the S&P since 2008... and that did not end well...
VIX ended the day higher closing above 11 for the first time in 6 weeks...
So if everything's so awesome... explain this? Panic-buying demand for calls?
Markets were a little chaotic in the last hour as Flake's headlines (along with McCain and Paul) crushes the tax plan and then a Senate straw poll signaled John Taylor as the preferred head of The Fed...
FANG Stocks bounced back after the longest losing streak since the election...
Treasury yields spiked today... hurt towards the end of the day John Taylor topped The Senate's straw poll
With 10Y closing above the crucial 2.40% level...highest since April
The yield curve actually flattened into the close and financials (while higher) underperformed the market...
The Dollar Index ended higher but saw some chaos surrounding the Flake/Taylor headlines...
Despite a roundtrip today, copper continues to surge along with crude as PMs retrace some of yesterday's gains...
But there's just one thing odd going on with regard commodities... 'futures' are massively outperforming 'physical' raw commodities...
The blue dotted line shows where China began its intervention this year. which is ironic as the last time China 'intervened' - Shanghai Accord in 2015 - the same decoupled pattern emerged... and commodity futures plunged...
Finally, as ForexLive reports, his chart, from Stephen Jen, is doing the rounds and it argues that asset prices are unsustainably high.
US Household Wealth - stocks, bonds, housing etc... - is now 5 times greater than Nominal GDP - something Greenspan and Bernanke never managed.