Odd..
The S&P (orange) managed to scramble back into the green on the week but Small Caps (dark red) and Nasdaq (green) remain red. Trannies (blue) knee-jerked higher at the open but faded all day…
As a reminder – last week's unrelenting meltup happened with China closed…
After ramping all last week, FANG stocks sank for the 2nd day in a row (with China back – are you seeing a theme yet?)….
Spanish stocks (ETF) bounced after Puigdemont declared a deferred independence…
Treasuries – open after yesterday's Columbus Day close – leaked lower in yields…NOTE the bid at the European open and at US open but then selling pressure once Europe closed…
Notably, overnight saw something very unusual in corporate bond land.
With spreads at post-crisis lows…
TRACE said that there were no client and/or affiliate trades of $5m or more in IG long bonds in the hours prior to the NY open. tt is the first time in recent memory that this has been the case. Of course, this follows Columbus Day in the states (bond market closed), and may be related to the market being closed in Japan on Monday for Health and Sports Day. China holidays had ended Sunday.
Did Central Banks kill the US corporate bond market too? Certainly seems that way!
The Dollar Index dropped for the 2nd day in a row (again now that China is back from Golden Week)…
EURUSD rallied overnight into the Catalan leader's speech, but rolled over on his 'deferred independence'…
Dollar weakness helped push Gold higher…
And Bictoin soared back above $4900!!
WTI/RBOB rallied onthe day ahead of tonoight's API data.,..
And finally… "you are here"
via http://ift.tt/2y9B0PQ Tyler Durden