Mid-East Crisis? Tax-Deal DOA?

2 dead Saudi princes, dozens arrested, billionaires' assets frozen, and John McCain calling the tax deal "DOA" - B-T-F-Record-Highs!!

Video length: 00:00:05

On the day, only one thing made some rational sense - gold outperformed (seemingly suppressed until Europe closed), as perhaps just perhaps some sane individuals reached for a little safe haven asset instead of selling vol (did uncertainty about the future increase of decrease after what happened in Saudi?) and buying stocks...

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All the major US equity indices bounced hard off overnight weakness then extended gains through the US day... Nasdaq (green) outperformed and Dow (blue) lagged S&_ (red)

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With only Trannies red on the day...

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The S&P 500 is now within 7 points of Goldman Sachs' 2019 year-end target (yes 2019!).

VIX drifted lower all day in a very small range from a spike open higher but some serious illiquidity was evident in the pre-open...

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Vol collapsed in everything last week (but note a small bounce in Oil Vol today). This is a new record low for Rates volatility...

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Some chaos today in the media markets as Fox and Disney were reportedly in talks once upon a time and that took the edge of Netflix...

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One look at the Saudi stock market tells you what you need to know about 'rigged' markets...

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No bounce at all in high yield bonds today...

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Treasuries opened higher in yield overnight but were bid from then on, ending down 1-2bps with the long-end outperforming...

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The yield curve contonues to flatten...

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The Dollar index tumbled today - erasing the post-payrolls gain...

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Cable strength was the biggest driver of USD weakness with EUR Unch...

Bitcoin slid today also as USD/JPY began to slide, droping from a new record high at $7590 over the weekend to $6932before bouncing back above $7100 into the US equity market close...

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