Stocks Slammed Into Red For 2018 Amid Carnage In Crude, Crypto, & Credit

"Don't worry, I have protection..."

 

Unlike Monday, Chinese stocks were ugly overnight, erasing yesterday's 'odd' gains...

And Yuan weakened modestly...

 

European stocks extended yesterday's losses...

Pushing Europe to its lowest in two years...

 

US equities collapsed into the cash open, bounced to the european close then gave it all back...

 

All major US equity indices went red on the year...

From the highs:



  • Dow Industrials -9.2%




  • S&P -10.2% (Correction)




  • Dow Transports -12.1% (Correction)




  • Nasdaq Composite -15.1% (Correction)




  • Nasdaq 100 -15.3% (Correction)




  • Russell 2000 -15.6% (Correction)




This is the Nasdaq's worst year since 2011...

 

Semis entered bear market and S&P Tech has almost erased the year's gains...

 

FANGs are in a bear market, back to lowest since Jan..

 

But saw some dip-buying today...

 

Boeing was down for a record 9th day in a row... and despite the bounce from the opening flash crash, still ended lower...

 

Nasdaq 100 30d volatility sits at 35, the highest level since late 2011, which just means more mechanical “VaR-down” is coming for these “longs”.

 

US Investment Grade Credit risk continued to charge wider - to widest since Nov 2016 - but still remains 'cheap' protection relative to stocks (VIX > 23 today)...

 

US High Yield Corporate Bonds are down 9 days in a row - a record losing streak...

 

Investors have demanded more money to provide insurance against junk-rated default risk for nine consecutive days, the longest such period since January 2010. Implied spreads on high-yield bonds, as per credit-default swaps indexes, are the highest since 2016.

It is time...

 

Bond yields and stocks have generally tracked each other well in the last two weeks - though the yield 'delta' to stocks has been notably lower than is normal...

 

Given the carnage in stocks and credit, Treasury bonds rallied only modestly...

 

 

But inflation breakevens collapsed to one-year lows, as oil plunged...

 

The Dollar surged today, erasing Friday's plunge...

Who could have seen that coming?


Cryptos had a really ugly start but rebounded for the rest of the day...

 

Despite the surge in the dollar, gold manage to end unchanged as copper, and silver slipped lower...

 

WTI Crude crashed over 7%, now getting the capitulatory rinse-treatment as well (As Nomura's CTA model shows “-13% Short,” goes “Max Short” under 53.93, which would imply ~-$1.3B on notional supply)...

Massive volume today as WTI hit 12-month lows.

 

Finally, we note that the Value Line Geometric Index has tumbled back to critical peak levels...

And then there's this..."You Are Here"

It only seemed appropriate to end with this...


 

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