HYG / BABA

Last I saw, NYSE is indicating BABA to open in the $90-$91 range, significantly higher than yesterday's $66-$68 range, giving it a huge market cap greater than FB, Verizon, JP Morgan and just below WALMART!

However, Richard Fisher of the F_E_D has thrown cold water on the market saying the F_E_D has levitated markets (with Q/E as if we didn't know that) and more importantly given bonds bearish or hawkish read of Wednesday's F_O_M_C (I'll trust bonds over stocks any day), he added that he sees signs of excess, which is not too far off the Fox Business news "The Market is Wrong". Given SKEWs 16 point elevation since Wednesday, there's obviously something the market is not happy about, I have a few guesses, but it's not important.

In any case, as the market has been sliding pre-BABA trade, it just opened and is near $96 this second, HYG has been used to try to jeep things afloat until BABA opened...

 SPY vs HYG, note HYG lifting as SPY declines, but it doesn't stop there...

QQQ vs HYG as HYG makes another higher high to combat the ugliness in the market, mostly seen in breadth and the MSI.

The IWM taking it on the chin this morning vs HYG. Up until this morning, the averages have followed HYG nearly tick for tick just as they have on a bigger picture, August cycle scale in which despite the recent help, HYG is still in stage 4 decline.

Here's the TICK trend which was trying to break above the downtrend as intraday 3C charts were putting in small positive divergences, not enough to fight off the F_E_D apparently.

I'm going to have a lot of assets to watch this afternoon, HYG is really key and we'll see if we can get some reads on BABA later in the afternoon as some history is laid down.

Make no mistake though, between our Igloo/Chimney price forecast playing out, the depth of negative market breadth which you can ignore at your own peril and the rapid, sudden rise in SKEW, there's something bigger at play even though BABA is the main event today.