The only major change in Index futures from the open was the directionality of the $USD, which led to $USD/JPY strength which the market followed with the weak VIX being monkey hammered already.
However, it looks like there's already a problem...
USD/JPY is already going negative and consolidating, losing upward momentum.
Apparently there's some problems in the Yen as well that seem to be contributing to the USD/JPY Stall...
intraday Yen futures (/6J) with a leading positive position in to the Yen dump, interestingly as the VIX was hammered lower...
IWM intraday is already showing a negative divegrence as are..
The Q's
Intraday breadth has fallen off as well at the stall in USD/JPY.
VXX is seeing the first intraday signs of positive activity in to the monkey-hammered lows and...
HYG is seeing a negative divegrence in to it's support at "in line"
You might have guessed...
TLT is also seemingly accumulating early weakness and of course the larger TLT chart...
Has a large positive divergence just as 30 year Treasury futures, Yields move opposite Treasuries/TLT and Yields pull stock prices toward them, a negative for the market.
With TLT, HYG and VIX involved, I suspected the lever/market manipulating SPY Arbitrage which uses TLT, HYG and VXX and this is what I found....
After the dull start, the SPY Arbitrage was activated, although it doesn't seem to have much in the way of legs under it.
Is interest rates about to start going up?
-
Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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