Macro Man's a little tender for writing, having flown off his bike via a garden hedge yesterday, so today's post is confined to observing five interesting market charts:

* HYG is back to its highs of the year.    Over the last twelve months, the ETF has returned a tidy 10.7%, with the underlying index up 12%.  Over the last two months it has handily outperformed the SPX.  This has been a better performance than many, including your author, would have expected, and amply illustrates that given current financing conditions the reach for yield is never very far away.

* Risk parity has continued to deliver.   While the notion of a US curve steepening remains an attractive one, the notion that risk parity funds are sitting there, facing possible redemptions, with their fingers on the bond-selling button continues to look wide of the mark.  The listed AQR version of the strategy is nearly back to its highs.

* European banks also seem to like recent cure steepening.  And so should they; it's much easier for a bank to earn its way out of its troubles then.   Not only is DB now above its "DOJ Day" price, but the SX7E is back above 100 and seems to have broken its downtrend of the last several months.

*  The SGD looks decent as a proxy for a low risk dollar long/China short.   A reader asked about the SGD in the comments recently, and as Macro Man responded, he's often used SGD over the years as a proxy for USD/Asia.   Not only is it pegged to an actual basket that has a healthy dollop of USD/Asia, but it's generally much cheaper to short.  In any case, it looks like it's broken up on the weeklies, though if it fails that might look an awful lot like a head and shoulders...

* The options market doesn't seem ruffled by the prospects of turmoil after the US election.  Although it's easy and kind of morbidly fun to choose worst case scenarios from your favourite dystopian fantasy, the base case is surely a smooth transfer of power as is the norm, most likely with some sort of split government- probably the best that you can hope for given the quality on offer.   That being the said, the VIX futures butterfly (buy a November, buy a January, sell two Decembers) as at its lowest level of the last 3 months, albeit in a rangebound fashion.  Perhaps the market is also fixated on the December FOMC announcement, though that didn't exactly cause much turmoil in the immediate aftermath.  Either way, it could be a cheap way of playing something going badly awry right after the election.

  OK, time to pop a couple more Advil and relax...