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

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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...

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But thanks to Big Blue's best day in almost 9 years...

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

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Notably, there was an odd flash-crash 'error' in The Dow's VIX today...

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

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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...

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

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

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FANG Stocks sank into the red on the week...

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But healthcare stocks didn't despite yesterday's rally headlines being destroyed today...

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

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

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Another day, another pump'n'dump in the dollar index...

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

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WTI and RBOB both initially sank after DOE data showed a mixed inventory picture and collapse in production, but by the close, both were in the green...

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Gold and Silver extended their losses (below $1300 and stalled at $17 respectively) after bouncing after the China's Golden Week...

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Finally we note that 'crash' risk (SKEW) has never been this high relative to 'normal' risk (VIX)...

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