Seemed appropriate…
After yesterday's visit to reality in the Fed minutes, it was left to VIX once again to be crushed to save stocks from a down day… and it worked until Rex Tillerson spolied the party with the ultimate distraction from Trump's failed efforts so far…
This morning's ramp erased yesterday's losses but Tillerson pushed us red again…
On the week, The Dow is clinging to unchanged, Small Caps still worst…
We can't help but feel The Dow needs to test down to its 50DMA once again before it can really take off…
And High Yield Bonds remain glued to the 50DMA…
Banks just can't hold a bid…
Twitter had another bad day…
Treasury yields whipsawed around on data and war headlines, ending close to unch
But the yield curve continues to flatten and butterfly around the 10Y point (2s10s at lowest since election, 10s30s at highest since Dec rate hike)…
30Y continues to hover around the 3.00% and 10Y hovers at crucial support
The dollar rose for the third day in four and was higher versus most of its G-10 peers as traders hunkered down ahead of Thursday’s meeting between President Donald Trump and China’s president Xi Jinping and the U.S. March employment report Friday morning.
Trading flows and price swings were modest as some participants stayed on the sidelines ahead of the Trump-Xi meeting, which has the potential to highlight policy differences on trade, currency and North Korea. The dollar has built modest gains for the day, reflecting upside risk in the jobs report after the ADP employment report showed stronger-than-expected hiring in the private sector in March.
The FX markets did not react as much as equity and bond markets to the Tillerson comments. AUD weakness offset JPY strength overall on the week..
Despite USD gains, WTI and RBOB also rose on the day – erasing much of the inventory drop…
Gold was very modestly bid on warmongery talk…
And finally… War must pay?
via http://ift.tt/2oOgbSy Tyler Durden