Stocks & VIX Decouple Ahead Of Op-Ex, Bond Dump-n-Pump Pattern Continues

Complacency just hit ’11’…

Chinese stocks were flat again, not experiencing the same exuberance as US markets…

Source: Bloomberg

Germany lagged among European stocks once again with Italy leading still…

Source: Bloomberg

US majors were all higher again today, melting up into tomorrow’s op-ex… Nasdaq and Small Caps are the week’s big winners so far…

Thanks to another opening short-squeeze…

Source: Bloomberg

Despite all the exuberance, it’s defensives that are more bid that cyclicals…

Source: Bloomberg

Tesla stock continued it short-squeeze to new highs, decoupling further from its bonds…

 Source: Bloomberg

VIX has dramatically decoupled from stocks in the last few days ahead of tomorrow’s big option expiration…

 Source: Bloomberg

As aggregate put volumes collapse relative to call volumes hit lowest since 2014…

 Source: Bloomberg

Will this be the inverse of the Dec 2018 lows?

 Source: Bloomberg

And at the same time, SKEW is back at its highest since September 2018…

 Source: Bloomberg

After 11 straight days higher, HYG (the HY Bond ETF) tumbled today (ex-dvnd)…

 Source: Bloomberg

Treasury yields were lower on the day (after spiking overnight once again) with the belly outperforming (5Y -2bps) and long-end lagging (30Y unchish)…

 Source: Bloomberg

But for the 4th day in a row, Treasury yields followed the same path of Asia buying, Europe selling, and US buying (post EU close)…

 Source: Bloomberg

The yield curve hit its steepest since Oct 2018…

 Source: Bloomberg

Which is more indicative of an imminent recession than the initial inversion…

 Source: Bloomberg

The dollar dipped marginally lower today, stalling at the Thursday night pre-plunge levels…

 Source: Bloomberg

Cryptos leaked back lower today after yesterday’s chaotic dump and pump…

 Source: Bloomberg

Commodities were all higher on the day with oil and silver leading…

 Source: Bloomberg

Silver is holding above the payrolls plunge levels…

Gold too…

WTI topped $61, accelerating out of its uptrend…

 

 

 

 

And finally, investors are the most extremely greedy since September 2017…

Source: CNN

Bearish sentiment is back at cyclical lows and the spread between bulls and bears is soaring…

 Source: Bloomberg

Apart from The Fed’s balance sheet expansion, we can thank the collapse of Elizabeth Warren’s candidacy for the stock meltup…

 Source: Bloomberg

BTFImpeachment

 Source: Bloomberg