One look at the last few days in stocks and all we can say is…
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Gold and The Long Bond were the best performers in August with stocks and the dollar unchanged-ish.
Trannies were best among the major indices in August followed by Nasdaq. Small Caps lagged. S&P just managed to close green for August.
Treasury yields tumbled in August… the biggest monthly drop in 10Y yields since Brexit (June 2016)
With the yield curve flattening dramatically… August saw 2s10s collapsed 15bps to below 80bps (the biggest flattening since Feb 2016) near its flattest level since Aug 2016
Debt Ceiling anxiety has exploded during August…
Despite the last two days panic-buying, The Dollar Index ended the month lower – the 6th monthly loss in a row… (NOTE the morning’s spike on ECB leaks failed to hold and keep the dollar green for the month)
And notably, of all the majors, Yuan was the strongest against the greenback and cable weakest on the month (this was GBP’s weakest month since Oct 2016)…
In virtual currency-land, Bitcoin surged 65% on the month to a new record high…
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Back to this week’s action…
Today’s biggest headline-maker was the 14% explosion in September RBOB futures as they expired (amid zero liquidity), but Oct Futs also spiked as more refiners were shut down…
Rather oddly, given the huge cut in demand (from refinery shutdowns), WTI futures spike today magically, back above $47…
All that mattered in the stock land today was getting the cash S&P above 2470.3 for a green month… Sheer panic right at the close saved the day (S&P now up 9 of last 10 months)
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