Discussion
Flat breadth, skewed defensive
VVIX dramatically trailed VIX, which tends to be bullish equities but could be distorted today by VIXperation Wednesday
IG CDX down on the day, but is carving out a higher low versus SPOOZ trying to make new highs
Rates are on the move and there’s a window here before the UST repo program launches in May for rates to move back up to 475-500 on 10s and 30s
Lots of interesting pre-FOMC commentary from the FinXwit cognoscenti. I have yet to see anyone pick up on “whether”. Fascinating. We’ll see what Wednesday circa 2:30-4pm EST brings.
Exhibits
Breadth and VOL.
IG CDX.
UST 30s.
“Whether.”