Trumptonium wrote:Quick glance at the yen shows the market isn't really pricing in safe haven last resort just yet. The alternative, of course, is that this is just a minor price correction, and we're back on track next week. Because honestly, no macroeconomic indicator would suggest that we're on the cusp. I don't know, and to be honest I don't really care, but I see no reason why anyone should be 'worried' about anything.
It is what one might call a shake-out of a crowded trade (long SPX, short VIX). And while it stays in equities, there's not that much else to say about it I don't think. And if you look elsewhere, corporate credit spreads have barely moved, FX markets don't seem too fussed as you said, and VIX futures trading volumes after 4pm EST have been coming down, so it looks like the stuff-up in that market seems to be on the mend too. Only thing that seems a tad odd is the sharp increase in Deutsche CDS, but that might turn out to be nothing.