Treasuries oscillated in a 3-4bps range all day to end flatter with 30Y -1.5bps and 2Y +1.5bps as stocks flip-flopped around like Charlie Sheen in a Phat Phong whorehouse. Trannies resumed their post-Iraq drop (-0.4% today) but high-beta honeys sent Russell 2000 up 0.3% with the S&P and Dow unch. Stocks recoupled with bonds after 2 attempts to spark new all time higherer highs. Ahead of this week's FOMC, the USD weakened as EUR gained and oil, gold, and silver all slipped in a highly correlated manner. VIX rose 0.4 vols to 12.6 – notably decoupling from the S&P as Iraq/Fed uncertainty prompted some hedging. The now ubiquitous buying panic took hold at 330ET and Russell closed at highs of the day.
Take you pick – Great Day; Terrible Day; or Flat
AUDJPY was in charge the moment POMO ended…
VIX decoupled as it seems Iraq or Fed uncertainty prompted some hedging
Stocks kept ramping away from bond reality and falling back…
But Treasuries flattened with the long-end rallying modestly…
Commodities slipped all day – in a highly odd correlated manner…
Becuae nothing say buy fucking small cap stocks like growth being slashed, oil prices surging (and stymying growth), and a Fed day this week…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1q5m48X Tyler Durden