Notice anything interesting in the chart below?

The large red candles show big drops in VX, the VIX futures contracts. Notice there are 4 of them – one for each of the last three Mondays as well as today. Since algos are well trained to respond to big drops in VIX, and VIX is easily manipulable, this suggests that the start of each of the past four weeks has been manipulated higher.

It’s easier to manage prices higher in the Sunday night low-volume environment. But, once the latest positive pronouncement from the White House fades and heavy selling pressure resumes, these bumps have quickly turned into slumps. Chase them at your own peril.

Today is no exception. Futures are up over 40 points on what is really very bad news: the Iran-backed Houthis have joined the war and shipping through the Bab el-Mandeb Strait, a key channel linking the Gulf of Aden to the Red Sea, could soon be shut down.

Currencies continue to hold on for dear life, with DXY still bumping up against 100.

And, CL pushing to fresh highs.

The 10Y is all over the map, undecided between responding to spiraling inflation or the nearly 10% decline in stocks. 

Stay tuned…