Re: usa vs kina

As we are writing this, bonds have picked up a strong bid - very out of whack with the supposed good economic data and the hysterical equity market rally of late. We're seeing the JPY fighting back a bit in response. There is something profoundly fishy about the intermarket action and we again underline that the latest moves - also in FX - smack of desperation or a squeeze on lack of sufficient participation rather than something we should be hanging our hats on. Some have pointed out that the VIX rose even as stocks also rose - not a healthy sign as a higher VIX is usually associated with fear. Is the equity market action simply a nasty short squeeze?