Another day, another wild ride... Ugly night in China... Despite over a trillion yuan in liquidity injections... And before we move on Hong Kong was hit by some crazy flash-crashes overnight... The UK's FTSE continues to lag as Italy soars... And then at around 1445ET, headlines hit that suggested US folding on China trade tariffs and stocks (and yuan) surged...and then retraced it all as TSY denied...but stocks tried valiantly to ignore the denial... Futures show that the WSJ headlines over trade were so perfectly timed as The Dow managed to get back to unchanged... almost as if someone wanted the market to pop there and panted the story... All the US majors pushed back above their 50DMAs... Morgan Stanley - like every other major - saw terrible FICC performance, but had no redeeming features to spur a bounce and that rather spoiled the party for financials... The big question is, what happens next? Bond yields jumped on the day and did not retrace on the denials... Pushing 10Y Yields to the 2019 highs... The Dollar index popped and chopped once again to end the day almost unchanged... (up on the week) Copper and crude spiked on the Trade headlines (but didn't retrace on the denials)... In other news, Palladium exploded to yet another new all-time record high above $1400 for the first time (up over 12% YTD)... Pushing it higher than gold for first time since 2002... Finally we note that US equities have now surged back near a record high valuation relative to Europe... And of course, NFLX is up next... with quite a low barrier for a beat...