Just relax…
As Bloomberg noted, stocks and bonds managed gains despite talk that tax reform may face insurmountable hurdles in the U.S. Senate.
Republican Senator Bob Corker who insists he won’t vote for a tax bill that adds a penny to the deficit, said he’s concerned the White House is showing "softness" on ending a $1.3 trillion federal tax deduction for state and local taxes. Separately, Senate Democratic Minority Leader Schumer said Republican tax legislation won’t pass.
For much of the day, Small Caps dared to trade lower but went green with 30 mins to go. Trannies outperformed – once again new record highs for everyone…
Small Caps U-shaped-recovery today (to get into the green above 1509.45)…started right as Europe closed… (RSI now at 85.2 – the highst soince Oct 1997)
Meanwhile, Russell 2000 VIX continues to rise…
Recent IPO Roku tumbled almost 10%…
FANGs rose on the day but drifted lower after the EU close for the 3rd day in a row…
Elsewhere there was plenty of panic-buying…
Amid strikes, protests, and massive gatherings outside police headquarters (oh and the King of Spain blasting "the irresponsible behavior of catalan leaders putting Spain's economic stability at risk… Spain's IBEX surged this afternoon…
Airlines exploded higher on the day (S&P Airlines index rose 5% – the most since July 2016)…
And auto stocks are on fire – jumping 5.3% in the last 2 days, the most in 9 months to the highest since Oct 2015…
Treasuries once again traded in a very narrow range ending down around 1bps on the day…
The Dollar Index jumped overnight (remember China is closed) as JPY tumbled but was sold from the European opening…3rd day in a row of ovenight strength and European/US weakness…
WTI Crude, ahead of tonight's API data, fell once again…
Finally we note that Gold ended the day flat at 6-week-lows…(holding at the 100-day moving average around $1270)…
As China's Golden Week trade continues to play out…
via http://ift.tt/2ynGl6V Tyler Durden