After a brief pause, everything is awesome again...
Video length: 00:02:44
Trannies exploded higher today (2nd best day since Trump election)... S&P record high, Dow above 25,500 for first time... and on and on...
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Despite equity market exuberance, VIX rose on the day, testing back above 10...
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YTD, Trannies are up 6.5% (up 8 days in a row - no down days in 2018 yet)... and Nasdaq is still soaring too...
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This is the best start to a year for Trannies since 2001.
The gains in Trannies were driven by upgrades across the board for airlines...this is the biggest 2-day gain since July 2016, busting out to new record highs...
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Credit markets collapsed to their lowest risk since Feb 2007...
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Which is fascinating as debt soars...
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Treasury yields tumbled on the day as China denials and a super strong 30Y auction put rest to any 'end of bond bull is imminent' arguments for the day...
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Yields do remain higher on the week though...
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But saw another notable flattening in the yield curve...
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The dollar plunged again (biggest drop since Jan 2) to the lowest close since 9/22/17...
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Most notably volatility is picking up in FX land - Something is happening in China...
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As Bloomberg notes, offshore yuan strengthened past 6.50 level, on track to erase week’s loss as the U.S. dollar weakened on weaker-than-expected economic data and stronger oil prices. CNH traders downplay impact from removal of counter-cyclical factor in fixing; offshore yuan now at strongest in three weeks on a closing basis.
Gold inched higher on the day as the dollar tumbled, oil gained...
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And while airlines soared so energy prices also soared (makes sense), with Brent testing above $70 and WTI above $64.50... then fell back to close unchanged...
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Cryptos had a noisy day after tumbling on a number of South Korea headlines with negative connotations, but Ripple ramped on news of a deal with Moneygram...
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Notably the Bitcoin-Trust-to-Bitcoin-Futs arb is coming back in...
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Finally, you are here...
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Bonus Chart: US Macro Surprise data is starting to roll over quite notably (i.e. from an extreme high in optimism, data is disappointing). The last time we were this over-optimistic and data rolled over, the S&P fell 10%...
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