Bruised And Battered Stocks Wave Bye Bye Ben

Tyler Durden's picture

Asset-gatherers and talking-heads are in full panic mode. Stocks tumbled ince again today and there was very little "off the lows" talk. The "turmoil" panic in the hearts and minds of every Wall Street strategist palpable as the Fed failed to save us from another down day. Trannies, Russell, and the Dow are down around 5.5% from their highs; the S&P down around 4%; and the Nasdaq around 4.5% from its multi-year highs last week. Today's plunge of over 35 points the S&P futures from the "where are all the sellers, EM is fixed" post-Turkey highs at 1801 is a very sizable outside range day. Of course it was all about the ongong unwind of levered JPY carry trades as 102 becomes crucial to any bounce in stocks. VIX rose 1.7 vols to 17.5%; credit spreads popped notably wider post FOMC; EM FX turmoiled considerably lower and while the USD was stable (there was plenty of puking in AUD and JPY). Treasury yields tumbled to fresh 10 week lows (10Y -8bps at 2.66% at the lows). Gold and silver rallied post-FOMC and recovered yesterday's monkey-hammering losses.

 

Spot the Diffference - JPY crosses vs S&P 500

 

Most major indices have now lost post-December taper gains...

 

As yesterday morning's short squeeze meant we needed to auction back down...

 

Only Healthcare and Utilities remain in the green among the S&P 500 sectors from the Dec Taper... (with Consumer sectors crushed)

 

Gold and silver recovered yesterday's slam down...

 

EM FX was crushed off Turkey highs...

 

Treasury yields jumped 6bps higher on the Turkey news at their open and then just collapsed all night and accelerated lower post FOMC...

 

Since the December taper, it appears (once again) that stocks were the last ones to get the joke...

 

Charts: Bloomberg

Bonus Chart: Wondering how Fed asset "flows" and investor sentiment (and thus buying/leverage pressure) is related? @Not_Jim_Cramer shows this wonderful chart of investor exuberance getting ahead of itself as Fed asset growth rates slow...