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Dow Follows Biggest Crash Since Lehman With Third Biggest One Day Surge Ever As China Dumps Treasurys

Another dead cat bounce... but this one didn't completely collapse... which means...

S&P kisses goodbye to

. !

— Amanda Drury (@MandyCNBC)

Log in to Etrade like pic.twitter.com/FhjdbiBWf5

— 3:30 Ramp Capital™ (@RampCapitalLLC)

Victory!!!

 

As Nasdaq gets back into the green for the week!! Mission Accomplished...

 

As post-European close panic-buying hit US Stocks...

 

And Bonds were brutalized today as the realization that China is selling spreads... This is the worst 2-day percentage  yield rise for 30Y bonds since Oct 2011.

And bond liquidity was absymal....

10Y Futures Volume 8/19: 1,342,746 8/20: 1,144,180 8/21: 1,378,470 8/24: 2,922,005 8/25: 3,111,586 Today: 1,349,883

— Stalingrad & Poorski (@Stalingrad_Poor)

Another day, another overnight ramp on vapor-thin volume to maintain the illusion into the US open...

And then the panic-buying ensued.

CNBC cheerleaders out en masse today once again... which made one tweeter think...

if as cnbc says this is a healthy correction - why are they running "Markets In Turmoil" every night?

— Tim Backshall (@credittrader)

But thanks to USDJPY, eveything was awesome...

 

Volume was weaker than it has been in the flush...

NOTE - today saw another lower high!! Be Careful

 

Today was the biggest short squeeze since mid Dec 2014...

 

Perhaps a little context is required for this 'healthy correction'... Todsay is The Dow's biggest point gain since Oct 2008 (and biggest percentage gain since Nov 2011)

 

AAPL's best day since April 2014...

 

And VIX saw its signal early on and pushed down to meet it... VIX crashes below 30 once again...

 

Meanwhile - have no fear, The VIX Term Structure is 'normal'....

looks totally safe pic.twitter.com/6B7iV6RQMA

— HedgedIn (@noalpha_allbeta)

Chatter that credit risk has turned are overstated... as counterparty risk seems notably bid still...

 

But the S&P has caught down to the weakness in the credit cycle...

 

EUR weakness and Cable hammered drove the USD Index higher on the day and back into the green for the week...

 

Commodities were all sold with silver and gold worst hit. The PMs did stabilize a little after Europe closed as copper & crude kept sliding...

 

WTI ended at the lows of the day with a $38 handle once again  (despite weak production and a big draw)...

 

We leave you with this comment from one bruight CNBC anchor, smiling gormelssly at thblionkg green lights...

"Concfidence In The Market Has Been Restored"

So no need for 'Markets In Turmoil" shows anymore then?

Charts: Bloomberg

Bonus Chart: A Change In Trend Is Coming...

The one Sentiment Survey that's NOT contrarian signaling potential change in trend pic.twitter.com/tM2fK8DogK

— Not Jim Cramer (@Not_Jim_Cramer)