Don’t fight The Fed or The Machines…

Video length: 00:04:05

The Dow is now the 2nd most overbought in 22 years… 3rd most overbought in 62 years

Kicking off The National Congress last night, Xi’s words did not manage to inspire the bond market as China’s yield curve inverted once again…

But thanks to Big Blue’s best day in almost 9 years…

The Dow soared over 150 points, now above 23,100 (IBM +100 Dow pts, Goldman +45 Dow pts)

Notably, there was an odd flash-crash ‘error’ in The Dow’s VIX today…

As once again, Dow and Dow VIX rose together… something has to give…

NOTE – the decoupling between price and risk occurred when China intervened.

On the day the Nasdaq and S&P underperformed (though ended green) as Trannies topped The Dow…

But Trannies remain red on the week as The Dow leads by a mile… (NOTE – some weakness into the close)

VIX found support at 10.00… and note the mini-spike in VIX into the close (random walk?)

FANG Stocks sank into the red on the week…

But healthcare stocks didn’t despite yesterday’s rally headlines being destroyed today…

Treasury yields rose on the day…mostly driven by European weakness…

The yield curve steepened modestly on the day but remains at 9-year lows…

Another day, another pump’n’dump in the dollar index…

Bitcoin got hammered early on ICO news but once everyone realised it was old news, the cryptocurrency ripped back to 5400…