But Academy's Peter Tchir added......>

US TSYS/STOCKS: But Academy's Peter Tchir added it's "curious" stocks and bonds

are both weak for a 2nd day, and "even more curious" as it's "without at least

to us" an "obvious" reason. "That inexplicability dovetails into some concern

that there is some sort of large scale flow or unwind occurring," he added.

- He said last wknd, "the only thing to fear was a lack of fear" but volatility

risk mkt finally showed some "capitulation" signs. "That is starting to return.

Like everything else, it isn't showing up as a major concern, but that may be

because mkts have become conditioned to be calm and to sell volatility on any

spike."

- He noted "we haven't seen inflows into the short VIX ETFs and ETNs, but with

VIX back over 11" Friday, "we shd get a better sense of whether more vol sellers

emerge or whether they are already fully committed." He adds it's key to watch

"so-called Min Vol and Low Vol funds closely" as in Sep 2016, they "surprisingly

to some, actually led the way down, once the mkt initially turned lower." (Low

vol funds: portls of low vol stks; min vol: correlation to "minimize portfolio

volatility gg frwd.")