Early weakness and volatility was entirely suppressed once European markets closed and stocks traded in a shockingly low range amid dreadfully low volume. All the major indices closed red with the Russell underperforming (and Nasdaq outperforming) as stocks tracked (more loosely than normal) with AUDJPY once again. Treasuries ended the day very modestly lower in yield (30Y unch, rest -1bps). The USD traded modestly higher all day led by weakness in GBP and AUD (as JPY ended unch). Gold closed unchanged as copper (China), oil, and silver slipped. Credit markets remain skeptical and VIX closed higher on the day, despite the late-day ramp efforts to get the S&P 500 green – which failed.
Stocks entirely decoupled from JPY carry in the last few minutes as VIX was slammed lower to juice the S&P up to a green close…but failed
and as that decoupling took place – VIX was smashed 0.4 vols lower out of nowehere but failed to get the S&P green
but as is clear – all the action in stocks was in the US open to EU close period (aside from that idiotic closing ramp)
MoMos were confused – FB new record highs, but TSLA tumbled
Credit remains skeptical…
Treasuries went nowhere fast…
Gold outperformed among the commodities as copper, oil, and silver slid…
Bonus Chart: myPLUG – the government’s new low-risk, high-return investment fund?