Just as the market wakes up to China, the bounce trade is obvious.
Markets bid from the start today - the Nikkei especially. US futures right there behind them (or leading them).
Yet we are not playing today.
Too busy watching the Olympics perhaps. Yet we let the cash blow off some steam early, with some players doing the robotic follow the Nikkei/US. A small surge, just missing out on taking the cash to zero (we started with small losses), and then a decent fade - from nothing. I was expecting selling yet this came at a randomish time, and a randomish algo level. Never was correlated to the rest of APAC either.
Anyway, that was it - my sense of the day confirmed and a sell bias to our markets over the morning, despite the Nikkei staying strong (0.9% around 11am), US futures 0.4% (both the Dow, SP the same - algos). The DAX and the FTSE also in line with 0.4% gains. A bit too uniform.
The Yen seemed to fade - as the $AUD was flat, the AUDJPY up about 0.2%. Risk on for Japan perhaps.
BTC has been interesting. I noticed early in the morning that it rallied as the US markets moved off their lows. The news/narratives are all over the place, yet something (PPP) took the markets all off their lows (SP, NQ, Russell). BTC rallied about $500 or more, and then that continued into my open, with it sitting above $39,000 all morning.... (More)