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"Markets In Turmoil" Dow Suffers Worst Streak Since 2011, Yield Curves Collapse

Nail-biter... or Cliff-hanger? (Stallone is The PPT, the girl is the market, the carabiner is The Fed, the guy in the other chopper is CNBC)

*  *  *

Post-Payrolls reaction...

 

Despite reassurances that a) rate-hikes are priced-in, 2) rate-hikes are bullisher for stocks than rate-cuts (why would The Fed raise rates if everything was not awesome?), and thirdly) buy the dip! It appears the rising rate-hike probability is 'coincidental' with markets turmoiling...

But don't forget...

Flashback Friday! http://t.co/KXtCoypZ8Z cc

pic.twitter.com/XMq9jc2ZoO

— Rudolf E. Havenstein (@RudyHavenstein)

Equity markets in turmoil... Small Caps broke...

 

And Futures show the big drops...but Europe-based drift higher...

  • Dow down 7 days in a row - first time since Aug 2011
  • Dow down 800 points in 3 weeks - worst run since Aug 2011

Note - Death cross (50DMA crossing below 200DMA) looms...

 

The S&P was held above its 2014 close and the 200DMA (2073) was very aggressively defended... thanks to a VIX clubbing...VIX ended the day lower!!! bwuahahahah!!!

 

The ramp effort broke the markets...

NYSE's direct feed clock just went whack - slowing dropping 10,000 micros over 15 minutes: pic.twitter.com/pTkuSg2kYj

— Eric Scott Hunsader (@nanexllc)

 

  • Biotechs down 9.2% - biggest weekly drop since Aug 2011
  • Media down 8.4% - worst week since Aug 2011
  • Energy down 2.7% - down 13 of last 14 weeks
  • AAPL down 5.1% - worst week since Jan 2014; worst 3 weeks (-11%) since Jan 2013

 

Catching down to credit...

 

VIX up 19% - biggest weekly jump since Jan 2015 before the gapping effort down at the close to rescue stocks...

 

 In Bond land...

  • 2Y Yield rose 6bps - biggest jump since June 2015 (near 4 year highs)
  • 30Y Yield down 5 of last 6 weeks (40bps biggest drop since Jan 2015)

  • 2s30s Curve down 14bps - biggest weekly flattening since April 2013
  • 5s30s Curve down over 9% - biggest weekly flattening since Sept 2011

 

The Corporate (IG and HY) Bond market is not happy... 

  • HYCDX +40bps in 3 weeks - worst run since Dec 2014, highest risk since Dec 2014

 

  • HYG down 1.25% to lowest since Nov 2011 (worst 3 week run since Dec 2014)

 

Commodity Carnaged...

  • Crude down 7.0% - down 6 weeks in a row (28% drop) to 5mo lows
  • Copper down 11 of last 12 weeks - lowest since July 2009
  • Silver Up 0.6% (before post-close slide) - best week in 3 months, breaks 5 week losing streak
  • Gold could not hold green - extends losing streak to 7 weeks

 

But not everything was down...

 

Note that Oil and stocks have become highly correlated once again...

 

As Crude was clubbed back to a $43 handle close...

 

Ironically, FX markets were actually relatively quiet (at least in the majors)...

 

Although EM saw some pain (from Ruble to Real...)

 

 

Charts: Bloomberg

Bonus Chart: VIX under 14 and CNN Fear-and-Greed Index collapses to 10!!