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Dow Turns Negative For 2014: Stocks Suffer Worst Week In 3 Years

Quite a day...

Dow Transports -6.9% - worst week in over 3 years - closed under 200DMA

Dow -2.6% on the week - given up all its gain year-to-date

Nasdaq -4.4% on the week - worst week in 30 months

S&P cash trades down to its 200DMA

VIX +40% on the week to 21 - 2nd biggest week in over 4 years, highest close in over 8 months

Treasury yields close at 2014 lows, down 10bps (30Y) to 17bps (5Y) but the modest steepening still leaves 2s30s under 260bps, flattest since 2012.

30Y Yields hit a 3.02% handle - 17 month lows; 10Y yields back under 2.30% - 16 month lows

The USDollar rallied for the 2nd day but ended the week -0.8% - the first losing week in 12 weeks and worst week in 6 months. USDJPY sold off the most in 14 months this week.

Gold +2.7 - best week in 6 months; Silver +2.9% - best week in 4 months

WTI Crude plunged 4.6% - worst week in 9 months; 2-week collapse 8.5% is biggest sicne June 2012.

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But the fundamentals are still in tact?

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Dow 16,576 12/31/13 close - Year-to-date, things are getting ugly fast..

 

Dow closed below its 200DMA

 

S&P closes at 200DMA

 

And S&P 500 futures kept free-falling after the cash close...

 

And off the post-FOMC highs...

 

On the week

 

VIX's 2nd biggest week in over 4 years...

 

VIX on the week...

 

and VIX on the day - with another fat finger...

 

Once again stocks tried to escape the bond reality (6 times today) but failed every time...

 

Treasuries rallied today ending the week notably lower in yield but steeper...

 

The USDollar rallied for the 2nd day but the 0.9% drop on the week is the worst in 6 months... This week's USDJPy drop was the biggest in 14 months

 

Oil slipped 4.25% but copper, gold, and silver all rose...

 

High yield credit spreads are at one-year highs... with IG credit up-in-quality trades continuing...

 

And stocks have a long way to fall in the short- and medium-term to catch down to credit reality

 

Charts: Bloomberg