Monday, September 5, 2016

Overnight Risk. Compliments of Weak Jobs Report

Manic post-Brexit melt-up
Record risk exposure/Complacency
Decade low volume and volatility
Extreme asset correlation
Over-crowded yield bubble
Oil implosion
Social mood collapse
Collapsed economic fundamentals
Central Banks ALL IN
Yuan weakening/Fourth volatility cycle

Carry trade implosion
Financials rollover...

Weak economic data is a boon to Wall Street, except it implodes banks and carry trades, both of which are counting on higher U.S. interest rates. Both of which led the recent rally...

"LONDON (Reuters) - The dollar fell against the yen on Monday after the head of the Bank of Japan disappointed investors who had expected a clear signal that monetary policy would be eased further this month."

USDJPY rallies have been a funding source for the S&P...

Global Financials had been strong-ish into the Friday jobless report...

U.S. Banks:

Royal Bank of Canada