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 https://twitter.com/jtcrombie!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); https://twitter.com/zerohedge!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); pic.twitter.com/XMq9jc2ZoO — Rudolf E. Havenstein (@RudyHavenstein) https://twitter.com/RudyHavenstein/status/629661450043179008!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); 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) https://twitter.com/nanexllc/status/629735920934219776!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); 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!!