Tech Tumble Spooks Stocks (Briefly) As VIX Curve Steepens To 7-Month Highs

    "A day above ground is a day to buy stocks…"

    [youtube https://www.youtube.com/watch?v=WlBiLNN1NhQ]

     

    Trannies were weakest on the day as dip-buyers rescued stocks from red after a mid-afternoon slump…ugly close

     

    Futures show the overall trading a little better – weakness from the EU open, a panic-bid at the US open, big selling pressure mid-afternoon, then rescue into the close (though sellers appears as ETFs settled)…

     

    While short-term Vol sellers remain extremely active – with a crash below 10 sparking this morning's buying-panic at the open (following Friday's quad witch)…

     

    The term structure has steepened dramatically with 6-month risk premia at the highest relative to 1 month since February…

     

    This could be a problem for those expecting this ramp to continue…

     

    Nasdaq 'VIX' was a notable outlier today…

     

    Tech stocks tumbled hard mid-afternoon after comments from Harvard Law's Lessig on regulating code…

     

    Healthcare stocks did slide a bit on renewed chatter about a repeal bill…

     

    (NOTE: NFLX spiked at the open after a good night at The Emmys)

     

    Financials mirrored Tech's decline, surging above their 50DMA…

     

    Bond yields continue to catch up to stocks after the world did not end…

     

    Treasury yields rose on the day with the long-end underperforming (NOTE – 2Y at its highest since July 10th ahead of FOMC)…Bonds did rally into the last few minutes of the day…

    Japan was closed last night.

     

    NOTE – 10Y Yields are back to the same level as Aug16 – FOMC Minutes day…

     

    Rate-hike odds for December are back above 50%…

     

    The Dollar Index rose on the day, tagging the lows from payrolls day…

     

    FX markets were volatile with central bankers desperate to walk back recent strength… first BoE's Carney, then BoC's Lane…

     

    In alternative currency land – Bitcoin spiked as gold sank today…

    Bitcoin is up almost 40% from the lows over the weekend…

     

    WTI bounced off $ 50 but ended the day lower as RBOB rose modestly…

     

    And finally, as a reminder, Americans have never been more bullish of US stocks…A record high 65% of respondents in UMich's consumer survey believe stock prices will be higher in 12 months…

     

     


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