Today was a significant day for many markets. For the 7th time in the last 8 months, US Treasuries opened the month with weakness (30Y up 8.5bps, 2Y +3bps from Friday). Significant JPY and GBP weakness pushed the USD Index to fresh 14-month highs (+0.25% on the week). USD strength smacked gold (-$20 to $1265), silver, and crude oil significantly lower (WTI under $93 and Brent testing towards $100, both down over $3). US equities decoupled (lower) from VIX and JPY-carry around the European close after hitting new all-time highs in the early session (over 2,006 for S&P Futs). Volume was better (but then it was a down day). Despite oil weakness, Trannies took off leading the day (with Dow and S&P closing lower from Friday). Credit traded with stocks for most of the day but ignored the late-day VWAP ramp in the S&P, closing at its wides. The ubiquitous late-day buying panic saved S&P 2,000… because it can.
2.5% of all trades today are for 1 share!
— Eric Scott Hunsader (@nanexllc) September 2, 2014
1 out of 4 trades today is for less than 100 shares. This is a record since odd-lots began reporting Dec 2012
— Eric Scott Hunsader (@nanexllc) September 2, 2014
Which helps explain the machines' new tactic for tickling stocks higher for VWAP sales (oddlots vs quote stuffing)
Because it's all about 2000…
From the "good" data this morning, stocks struggled… only to rip back positive into the close…
But from Friday's close, Trannies are up; Dow and S&P down…
Treasury yields surged…
The 'sell' Treasuries at the start of the month trade…
Perhaps September is recoupling month?
Credit decoupled towards the close…
And VIX decoupled around the European close…
The USD surged – driven by JPY and GBP weakness…
EURJPY and USDJPY decoupled entirely from stocks and after the US open, so did AUDJPY…
Which sent PMs (gold 3-month lows) and oil tumbling…
Crude oil prices plunged…
Gold and USDJPY appear to have recoupled…
Charts: Bloomberg
via Zero Hedge http://ift.tt/1lGBTVi Tyler Durden