Liquidation - Stocks, Bonds, Commodities Collapse

Tyler Durden's picture

Since we lost the deer yesterday as it was run over by bond sellers, it appears everyone else came to the realization that QE cannot be infinite, that EU event risk never went away, and that China does have a credit bubble and so it is time for the monkey. Where-ever we look today there is carnage. The superlatives are all extreme but are the biggest since Europe collapsed in October/November 2011 (preceding the coordinated global central bank bailout) - 1-day and 2-day drops in stocks the biggest in 19 months, Gold and Silver's second largest 1-day drop in 20 months, investment-grade and high-yield credit's worst 1-day and 2-day widening in 19 months, EM currencies (e.g. MXN) worst day in 19 months, Copper's worst day in 19 months, and the heaviest volume day in S&P futures in 20 months. While stocks closed at the lows of the day, Treasuries did see some buying come in the last hour or so - which appears to be safe-haven scrambling - and EUR weakness (post IMF) was trumped by JPY strength (unwinds) to drag the USD off its highs into the close.



Stocks are broadly down 3.5% to 4% since the FOMC...


With the S&P futures down 4.4% from yesterday's highs and having their highest volume in 20 months...


and housing names the hardest hit (even with today's positive news - since good is now ultimately bad)...


While stocks (above) closed at their lows, Treasuries were modestly bid in the last hour or so (as the plethora of bond gurus emerged to explain how the Fed will never leave)...


FX markets were once again on fire (though EM more so than the majors)...


Gold, Silver, and Copper (China!!) were destroyed... ending at their lows...


VIX broke above 21% today - up over 4 vols - its highest close of the year...


We would imagine more than a few margin clerks will be busy tonight...

(h/t @Not_Jim_Cramer)


Charts: Bloomberg and Capital Context


Bonus Chart: Bonds have 'collapsed' to equities' exuberance but without the support of the Fed - will they both revert (as they always have) to macro-fundamentals?


Bonus Bonus Chart: Where's The Yield Maria?

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JeremyWS's picture

upload an update hindemburg omen chart please

Freedom In Your Lifetime's picture

Meh, i can't muster the energy to feel sorry for anyone that hasn't realized financial or commodity markets are a scam. If 2008-2009 didn't wake people up then they will deserve what is coming. The tomatoes in my garden are delicious and my peppers will be ripe in a couple of days and that affects me more than scary looking charts ever could.

BigJim's picture

I'm a PM holder and don't have a garden to cheer me up, so I nipped over to King World News instead.

It's all good, apparently, for us holders of PMs; according to James Turk (not sure if he's 'out of Spain' at this time) we are heading into the very 'Eye of the Hurricane'!

Which is odd, really, because I always thought the eye of the hurricane was the quiet bit. 

James_Cole's picture

Copper chart is looking very ugly. 

Ness.'s picture

Hubba hubba hubba - who ya gonna trust?  Dr. Bernanke or Dr. Copper?  

I'll stick with Dr. C thank you very much.

Lets_Eat_Ben's picture

VIX is your friend out here. This is bat country.

Fish Gone Bad's picture

This is how the epic fail will play out:

All the shorts have been found and squeezed.  Now all the longs will get destroyed.  Everyone ends up losing.  This is the first collapse everyone saw coming and yet still got wiped out.

Citxmech's picture

IDK - my PM meter is swinging solidly into the "buy" range right now. 

Only thing I'm not sure about is whether to split my dry powder and dollar-cost-average some, or just go all in. . .

ndotken's picture

"Our largest worry concerning the ETFs is that the paper price of the asset overshoots the limits of the physical supply and a COMEX default occurs. The paper markets (ETFs, contracts, derivatives, etc) can move the silver price much faster than the physical market, and if they move them too far and too fast, the demand in the physical market may cause more deliveries than is supported by actual physical stocks and force parties to default on delivery obligations. This would reverberate in the market and would cause a rush from paper to physical and a surge in the physical price, which is not a situation where an investor wants to own the paper equivalent of the commodity."

It's finally dawning on these buffoons that owning paper is not the same as owning physical ... LMFAO ... and these idiots are now realizing there is no "paper equivalent" of a precious metal

Panafrican Funktron Robot's picture

Just wanted to note that this selloff came in spite of a $3+ billion POMO day today.

Tomorrow not likely to be pretty.

Praetorian Guard's picture

PM's won't mean dick if this bitch completely rolls... nice to hedge against fiat IF the system continues, but with the totality of everything involved, me thinks this bitch implodes and then goes nuke...

e-recep's picture

gold will do fine during a nuclear winter.

Praetorian Guard's picture

With your skeletal remains still clutching it, as a cock roach scampers over your hand, up your humerus, and out through your orbital socket? ;)

seek's picture

and a rifle in the other, boney hand ;)

Citxmech's picture

If things completely roll-over - that's what you've also got guns and grub for (right?).  OTOH - I don't think we're close to a total societal collapse just yet.  Just another leg down - probably bigger than last time though.

Calmyourself's picture

Correction: empty rifle in my boney hand..

xxxxx's picture

I like your sense of humour, like the dancing bear too. Someone should make a animated gif of him.

MeelionDollerBogus's picture

keep in mind gold is an alpha radiation deflector and lead is a gamma radiation deflector. beta radiation (electrons) can be deflected with various materials and deflected with magnetic fields.

In an actual "nuclear winter" maybe you'd be lucky enough to keep crops under cover & safe-ish though one key question arises:

where does your water come from? That pretty much is key.

xxxxx's picture

It's always "good" news at King World News. Sort of like going to disneyland.

Beam Me Up Scotty's picture

Did the Plung Protection Team go on vacation?  Maybe they retired, wealthy as they are...

max2205's picture

This anin't shit...TLT was -3% at one point...-2% close...whoopdedo

Freedom In Your Lifetime's picture

yes, here I am. Keeping up with the news and killing time at work...

I_Rowboat's picture

Damn straight!  Here in the Puget Sound area, my honeybees are going full-bore on the blackberry blossoms, the peas and greens are abundant, the corn, tomatoes, peppers, melons, cukes and squash are doing great, and crabbing season is about to open.  I've never seen such a vigorous potato crop!  Livin' off the fat of the land, I tell ya!  (There's no iPhone app for that, BTW)

1C3-N1N3's picture

+1 for healthy bee colonies.

Mead is good shit, too. =]

I_Rowboat's picture

I made blackberry wine last year, it was really good, and I'm planning on stepping up my efforts in a major way this year.  So I get to keep the cake and eat it too:  first as honey from the blossom nectar, then as alcohol from the fruit.  What a splendid arrangement!

1C3-N1N3's picture

Good stuff! As soon as that blackberry wine is done, you could likely drop some honey-water onto the remaining wine/champagne yeast culture and let it ferment out into mead. I'd imagine you could even sweeten it with some of your leftover berries. (Apologies if you already know this, and if not here's a guide -- basically boil and then cool ~1-1.5 quarts honey per gallon of water )


StychoKiller's picture

You do not have to cook the honey, it already has anti-bacterial agents in it.  Use distilled water and you won't have to boil the water either.


Citxmech's picture

No kidding on the 'taters huh?  I'm in N. Seattle and my potatos are going CRAZY too.  Best crop I've ever had w/o doing anything special at all. 

Of course my tomatoes are doing absolutley nothing - so here's my plug for diversity in planting.

I_Rowboat's picture

I'm in Kingston.  This is my first year with a greenhouse -- an old carport I covered with real greenhouse-grade plastic (not the visqueen crap from a hardware store) -- and the difference is huge, even with past experience using hoop tunnels.  Past attempts with tomatoes have been lackluster and melons have been non-existent.  Not so this year.

1C3-N1N3's picture

Wow! I'm very happy for you folks and your results thus far. I was in Nebraska last year and hardly anything would grow at all. 95-100 degrees with no rain, every day it seemed from late April til late September, except for that one night right before the tornado came along...and it was just as bad for most of the midwest.

Keep it up, guys. There's nothin' like the I-made-this-and-now-I'm-gonna-have-it moment. =]

I_Rowboat's picture

Ugh.  I grew up on the Colorado Front Range so I feel your pain.  Hot and dry as hell in the summer.  It reliably rained (or hailed) in the afternoon every few days or so 20 years ago - not so anymore.  In western WA we get maybe a few days above 90 but the humidity is moderated by the marine air.  No rain here from July to Sept or October, but plenty of time and precip before that to establish strong, deep root systems.  Learning how to (mostly) dry garden - at least for the summer crops - is just as important here as it is elsewhere.

1C3-N1N3's picture

Right on. I just moved back to southern IL (not far from KY) and have to skip this year b/c I'm in an apartment now. Plus, the frosts persisted deep into April, so that hampered a lotta folks here. By next year, though, I plan on having some space to work with. Bees, beets, and beasts if I'm lucky, lol. We'll see.

Best to y'all this year!

Pretty Vacant's picture

Huh?  The investors which bought equities early in this rally are up over 100%.  It's a little silly to be smug because they gave a small percentage back.  We have a long way to go before we can dish out schadenfreude.

MeelionDollerBogus's picture

small percentage back? They probably will just barely break even to what they had at 2007 at best. You seem to be forgetting these same people lost their shirts DURING the crash down to 2009 and didn't make enough in % gains OR income to make up the losses.

Schmuck Raker's picture


[via Tyler's tweet around 3:30]

JeremyWS's picture

cheers must have missed it on the twitter

BLOTTO's picture

Summer Solistice in the Year of the Serpent (Snake) set to begin tomorrow...


The Sun-gods and its pagan worshippers will be happy.



Metalredneck's picture

Bonfire, wine & nudity tonight.  And deet, since I am in Canada.

pods's picture

God Bless the Black Fly!

Isn't that the national bird up there?


MisterMousePotato's picture

A long time ago, I was driving along the West Branch of the Penobscot River in northern Maine in my Volkswagon bus. Stopped at the Big Eddy, went around to the back and opened the hatch. Well, you know? The rear window was covered about half an inch thick with black flies. Black flies are something that, if you haven't experienced  'em in person, there's just no way to explain it.

fuu's picture

Fuck the deer, give 'em the ape.

Manthong's picture

Lousy recording of a good scene involving ape’ing a commodities scammer.

..and how Senators get their start.

Midasking's picture

tapering is not happening or the entire world will be a smoking hole in the ground. QE will be expanded you can count on that.

kaa1016's picture

And when QE is increased, that's when you'll see the mother of all selloff's because at that point, the perception that the Fed has everything under control will be revealed for exactly what it is, BULLSHIT.

SheepDog-One's picture

Nothing but a smoke and mirrors illusion.The real shitstorm is about to hit when everyone bolts for the locked door at once.