Tech Wrecks, Credit Crashes, & VIX Goes Vertical – “Probably Nothing”

"Pause that refreshes"

 

Well that escalated quickly… From the open on Tuesday, the "fire and fury" dump, the ubiquitous BTFD ramp dead cat bounce… and today's flush…

"Not Off The Lows"

 

Summary:

  • Nasdaq, Dow, S&P, Small Caps worst day in 3 months (to one month lows)
  • S&P Tech Sector worst day in 2 months
  • Financials worst day in 3 months
  • HYG (HY Bond) worst 3-day move in 5 months (to lowest since March)
  • VIX biggest 3-day spike since Aug 2015 China deval.
  • Gold's best 3-day rally in 3 months
  • Yuan biggest 3-day gain in 2 months

Year-to-Date, Small Caps and Trannies are not doing so hot…

 

FANG Stocks plunged over 2.5% – worst day in two months – erasing all the NFLX earnings gains…

 

S&P VIX pushed up to 16, smashing through its 200DMA…this will be the highest close since the election

 

Nasdaq broke and closed below its 50DMA…

 

Nasdaq VIX topped 19 – its highest since June…

 

XIV (inverse VIX ETF) plunged to its 100DMA…

 

Black & Blue Apron…

 

Credit markets have suddenly woken up with HY spreads blowing out by the most in 5 months…

 

With HY Corporate bond prices broke below their 200DMA…

 

Treasury yields tumbled – bond prices erased all the losses post-payrolls…

 

With 30Y back to its lowest since June…

 

The Dollar Index slide for much of the day but accelerated lower after Trump's late-day comments…5th day in a row that the dollar has rallied overnight and into the European close and dumped after…

 

Yuan and Yen strength are dominating the downward pressure on the dollar…

 

Gold continued to surge – hitting two-month highs…

 

And WTI was clubbed on OPEC production headlines and chatter on Russian output increases…after the machines had run the $50 stops…

 

Stock markets starting to catch down to reality?

 

Long way to go yet…


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