Here's A 10-Second Guide To What Traders Are Talking About Today

Dave Lutz of JonesTrading has the top topics about which traders are talking today.

US Futures are holding yesterday’s gains (NDX closed at a 14Y high, S&P got back upside 50dma), as tailwinds from Europe continue. We saw a large unwind of protection yesterday into VIX expiry — and the possible antics of a large ETF rebalance in the market — yesterday they sold iShares Credit ETFs and bought iShares Sector ETFs (Mostly Industrials and Fins) — I’ll be watching for a move to the SPDR products — watch XLI (Industrials) and XLF (Fins) for explosive volume early. The DAX has gained 80bp, but has softened in the last few as German 10YY tests session lows .995% – Summer volumes remain, with most markets trading 35% recent averages in Europe. Over in Asia, Nikkei gained 80bp as they reacted to the softer Yen – China closes 8M high as Media stocks rallied on reform headlines — Aussie closed higher on the back of the miners. Watch those Miners, we continue to see GDXJ outperforming the metal — Building ETFs (XHB and ITB) will be active on HD#s and Housing Starts data, they have a ways to recent peaks — Airlines shrugged off Volcano headlines, and weak “chatter” of M&A in Japan causes sharp covering.

The US 10YY getting some legs to the downside as Germany’s 10 breaks 1% again. Does not look Stress related, as DAX futures remain near peaks. Leverage continues to comes into FX, with the Aussie $US rallying despite dovish minutes from their Central Bank. Doves getting louder in Jackson Hole, as we got more weak global inflation prints – Drop in UK Inflation hits the Pound, and Kiwi getting whacked on low inflation and weakening economic forecast. The DXY is about to make new 2014 peaks, a headwind for commodities — yet Industrial metals are in the green, and even Gold is holding a bid. The Oil complex is seeing a bounce right now into inventory data, while Corn and Wheat continue to be pressed to the downside. Housing numbers got Bonds hit yesterday — we get Starts and Permits today at 8:30 along with US CPI, we have a super-small POMO at 11, then API data tonight at 4:30. We have Expiry of VIX contracts today, WTI tomorrow

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