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Buying-Panic At Open & Close Rescues Stocks From Yield-Curve Tumble

Without the gamma-reaching momo-igniting fuel of quad-witch, markets largely went nowhere fast…apart from the buying panic at the open and close

After a couple of days of violent downside, Chinese stocks soared again on Monday…

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Mixed picture in Europe with DAX down but UK’s FTSE leading…

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Other than the low-liquidity melt-ups at the open and close, US equity markets were a snoozefest as the Dow traded in a narrow range despite Boeing’s efforts to insert some vol. Post-Quad-Witch, and pre-Fed, everyone appears to be sitting in their hands…

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Crazy day in “most-shorted” stocks…

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There is one notable fly in the ointment – IHS Markit’s short interest as a percentage of shares outstanding shot up by 1.16 ppts Thursday and Friday to 5.45%, the biggest two-day jump in short interest since early December…

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Similar picture evolved in buyback-related stocks, surging at the cash open…

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In other equity market news, Brazil’s IBOVESPA topped 100,000 for the first time today… (but spoiling the party just a little, we note that in USD terms it remains down 40% from its highs)…

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VIX was crushed back towards a 12 handle after surging in the early going…

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The gap between Stocks and Bonds continues (around 120 S&P points now!!)

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Treasury yields rose by 1-2bps across the curve today but the long-end outperformed…

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The Treasury curve flattened notably today – 2s10s flattest close since Jan 29th (FOMC), but 2s30s tumbled the most on the day…

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Notably, 30Y yield is just below where it was in December when the Fed last hiked rates (and the rest of the curve is 20-26bps lower)…

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The Dollar Index dipped back into the red this afternoon after rallying through the early day…

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Bitcoin Cash surged…

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Bitcoin topped $4000 twice over the weekend but was unable to hold it for now…

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WTI extended its gains as Gold and Crude clung to unchanged…

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Gold managed to bounce and hold above $1300…

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Finally, as FOMC looms, Jay Powell will face an uphill battle to out-dove the market’s expectations… (of a 16bps rate-cut in 2019)

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Who will be right? Bonds Or Stocks?

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Source: zerohedge.com

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