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Manic Monday Becomes Turmoil Tuesday As China Rocks The Global Boat

In honor of China's historic devaluation, today seemed like a two-clip day... For the Traders...

and of course... for the news media after yesterday's celebrations...

 

Ok, having got that off our chest we start with... USDCNH's collapse (utterly destroying carry traders as implying vol exploded) has continued after China's close...

 

Is it any wonder that carry trades worldwide exploded?

US equities roundtripped all of yesterday's gains... then bounced...

 

Leaving only Nasdaq red on the week though...but they did try to ramp that too...

 

Weighed down by AAPL..down 5% - worst since Jan 2014...

 

Dow Death Crosses...

 

VIX rollercoaster continues - VIX up 13% breaking above 14...

 

With a late day slam in VIX to ramp the S&P perfectly to VWAP... NOTE the institutional selling at VWAP on each bounce...and the volume difference!!

 

File these two charts under the WTF folder... Energy credit spiked to 1028bps and WTI crude collapsed to a $42 handle... so it makes perfect sense that energy stocks would surge...

 

Because buying Energy stocks at 22.85x is definitely a great call as credit and crude collapse...

 

Submerging markets collapse to 4 year lows...

 

 

Treasury yields collapsed around 9bps across the complex... The 5Y, 7Y, 10Y, and 30Y all closed below their 200DMAs

 

FX markets turmoiled... commodities currencies were monkey-hammered and EUR strengthened as the most popular CNH carry pair (which led to modest USD strength)..

 

Commodities were mixed with PMs up and industrials/base down...

 

Precious Metals appeared to get a nod that things were coming...

 

Crude Carnaged to fresh 6 year lows today... with a $42 handle... increased OPEC production (Supply) along with China growth (Demand) fears

 

And Copper closed at fresh 6 year lows...

 

Finally - a message from your friendly CNBC correspondent: "Flat Is The New Up"

 

Charts: Bloomberg