Liquidity was simply not there – but but but HFTs?
Which meant – just as we warned – epic whipsaws in stocks…
As USDJPY tested down towards 107…
and Tresasuries led stocks lower all day…
Leaving all the major indices red on the day (even after Russell tried to stage a big comeback)… just look at Trannies at the open!! (that’s not a fat finger!!!)
A look at futures trading shows the magical levitation overnight giving way to reality in the US session…
Year-to-date, Dow joins Russell in the red, Nasdaq getting close…
VIX punched above 24…
Stocks – always the last to catch on..
Airlines index crushed…
Bonds may have been closed but futures implied some big yield drops on the day…
Credit was closed today but just as a quick context for where stocks might end up…
FX markets were also thin but notable moves in AUD and SEK as the USD weakened again… the moves were dominated by the overnight China data
Commodsities rallied (on safety and weaker dollar) but WTI fell once again… (even after a modest rally intraday)
Charts: Bloomberg
Bonus Chart: Remember what happened the last time Japan raised taxes…
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