Nasdaq Nears Best August Since DotCom Peak But EM, VIX, Bonds, & Macro Decouple

Since China intervened mid-month (ahead of the US-China trade talks), the Yuan strengthened and US equities soared (until decoupling the last few days)…

And bond yields have fallen (QE trade!?)

But Emerging Market currencies have started to collapse again…

The Nasdaq is on course for its best August since the year 2000…Things did not end well last time (-74% in under 3 years)

Ramping in an echo of January’s exuberance – …Things did not end well last time

And we note that VIX has recently decoupled from stocks…

Buoyant appetite for call options may offer one explanation for why VIX rose in tandem with equities in recent sessions. A similar situation preceded the record spike in volatility earlier this year that abruptly ended the previous stretch of all-time highs for U.S. stocks.

And finally, if you think stocks are rallying on fun-durr-mentals, you’re wrong!

But apart from that, BTFATH!!!

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Chinese stocks continued to drift lower after Monday’s National Team pumpathon…

And record highs in US stocks, because why not! From 10amET (Freeland!?) to 1130pmET (EU close), there was a clear systemic bid across the entire US equity market. Cash markets closed on a weaker tone despite 1 billion MoC to buy…