Stocks Slammed Most In 6 Weeks On Yen-Carry Collapse

Tyler Durden's picture

Copper's China-credit-contraction-driven crash continues as the metal drops to fresh 5-year lows today (on par with Lehman and the US downgrade collapses). Japanese stocks are down over 1000 points from their post-Putin highs. Russian stocks are plunging, Germany's (and Swiss) bonds are surging (as is gold) and European equity and credit markets are in free-fall. But apart from that... Finally we saw the world's angst spill into Yen-carry trades (USDJPY was spanked today - almost biggest drop in 6 months). US equities plunged tick-for-tick with USDJPY (S&P's biggest drop in 6 weeks and red for 2014); Treasury yields were crushed 9-10bps from intraday highs (biggest drop in 2 months); credit spreads banged wider; gold jumped to six-month highs; and EUR weakness (post-Draghi) ramped the USD back near unchanged on the week. VIX was a one-way street higher all day (biggest low-to-high run in 6 weeks) to 6-week highs.

CNBC clarifies "you can't find any single reason for this selloff" - nope, none at all...

But perhaps this is more realistic (h/t @stalingrad_Poor):

JPY-carry collapse sent stocks reeling:


Only Trannies remain green from Putin's press conference (despite a late-day ramp effort) - this is the 4th down-day in a row for the Dow


Year-to-date, the S&P joins the Dow in the red once again...


Financials (trumpeted as the leader of the next leg higher in stocks) are back to unchanged  YTD with Utes leading the way...


VIX was a one-way street higher with 2 efforts to ramp (including the ubiquitous late-day ramp)


And bonds recovered most of their post-Putin (and issuance rate-lock biased) losses...


Credit markets continue to be ugly here but stocks playing catch down quickly...


Demand for safe havens is dominating growth hope this week...


FX markets were a mess - AUD spiked on Aussie jobs data (but recovered the move in the US session), JPY rallied dramatically, and EUR dumped on Draghi jawboning...


Copper's drop is starting to look a lot like Lehman... (copper intrday clung to yesterday's intrday lows but closed at lowest levels since mid-2009)


And Japan is getting spanked... (as JPY drops most in 6 months)



Charts: Bloomberg

Bonus Chart: The World Stock Market's Equity Price-to-Central Bank Balance Sheet multiple remains very stable (for now)... (h/t @Not_Jim_Cramer)

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skwid vacuous's picture

risk off bitches, alot of IBD loss limit sellers tomorrow...

Thought Processor's picture



This whole ficticious market is a Powder Keg, set to blow.


All we need is a little spark..............

DoChenRollingBearing's picture

I wrote earlier (this morning) in another thread when the Dow was down 44 that I would not really take notice until it is down 240.

Just about there now...

666's picture

If Obummer slid off a roof and broke his neck, I'd give a standing ovation; however, I hope that poor cat was unhurt. Animals are far more important to me than politicians.

666's picture

Thank you very much for posting the link, O Great Banger of Heads. I am relieved to see the cat was unharmed, but disgusted by its owners who didn't seem to care in the least. Stupid humans...

SheepDog-One's picture

I replied 'Would -230 be close enough?'

DoChenRollingBearing's picture

Oh, sorry I missed that!  The answer is clearly yes.

Thought Processor's picture



And speaking of wounds-

Dr. Copper called this one several days early, as usual.


Nice job Doc.  Nice job.



TeamDepends's picture

Thank you.  Anybody else notice the USD Index has been sub-80 for a few days now?  Isn't 80 the grab-yer-ankles threshold the gooroos were warning us about only a few months ago?

disabledvet's picture

that thing is meaningless. way overweighted to the euro.

all commodities crashed in the 90's...especially energy. that didn't stop the S&P from jumping 30 percent per year for five years. Dr. Copper is a proxy for housing...not equity growth.

fonzannoon's picture

Grandma Yellen like her utilities, bonds and gold. This is a grandma market now.

Deathrips's picture

In other important breaking news...anyone in this ponzi is a complete moron.


Silver Bitchezz.



fonzannoon's picture

when is silver going to man up and stop acting like a dead carcas on the side of the highway?

Deathrips's picture

As soon as miners stop self immolating, to save the banks?



Miners know damn well that the PM markets are rigged and have not only moral/fiduciary obligation to sell their products for real market value for their shareholders, but also for their own pockets. If they aren't leading the charge by withholding supply to accelerate true price discovery and/ or are doing this on purpose..its criminal.   They openly participate in the process of PM manipulation by consent. Its criminal...but don't expect the SEC or CFTC to do a damn thing about it... Junk away if you must..but answer me this. Do you sell your stuff below market value because someone tells you the price is wrong? I dont. I either dont sell..or hold out till the price is right.

Fuck Miners!




EDIT: Well I been I better elaborate. At least that way, I know its not confused.

disabledvet's picture

meh. Tesla ain't for grandma. And neither is the fuel cell complex.
This is a testosterone driven equity machine with...obviously...a great safety kicker.
Fannie and Fred will be somewhat "off the payroll" soon.

We'll see about War with Russia though.
I think the Fed et al will do all in their power to keep those rates as low as possible.
New Zealand looks like the only real economy in the West right now.

I don't think i'll be moving anytime soon...don't know if i'm ready to be a sheep herder quite yet.

highly debtful's picture

So many charts, so little time.

holgerdanske's picture

About bloody time.!

And a falling bankster?

skwid vacuous's picture

I hope that raccoon-like creature in the video landed ok, banksters not so much....

TeamDepends's picture

We have only been off the farm for a few months, but that is no 'coon.  However it does appear to be a fat-cat, and unfortunately they usually have golden parachutes.

Devotional's picture

this is just a minor wave down to 1720. No big really, a correction. I know, I hate it too o_O

qazwsx's picture

As of yesterday, volume in GDXJ picked up once again, after consolidating for a bit.

RonBurgundy's picture

It really got out of hand fast. . . I blame the snow!

SheepDog-One's picture

No reason for this selloff! NONE! Stawks are cheap bubbles anywhere the FED said so now get back in there and BUY, damn serfs! After all it's all 'free money' and whanots, come get you some!

Kaiser Sousa's picture

losses in the Fraud Market finally held...

and how strange was the movement in the Silver market...

disconnecting from gold and meandering stupidly in the $21.18 - 21.23 range all fucking day....

cleary this makes a lot of fucking sense.... by the way...KEEP STACKIN CAUSE I AM...


Spungo's picture

Fucking cold weather. We need to buy gas guzzlers to make sure it never dips below freezing again.

playnstocks's picture

@Yencross.. Thanks for the trade tip yesterday, You called that one perfect. Had a good day!

constantine's picture

That cat on the roof is hillarious... I love how at peace it seemed with its imminent demise about half-way down the roof... such the perfect metaphor for today's nonsense.

mobius8curve's picture

Some very interesting DJIA stock market statistics:

1/14/2000 ~ market high ~ 11,723

10/9/2002 ~ market low ~    7,286

10/9/2007 ~ market high ~ 14,165

 3/9/2009 ~ market low ~ 6,547                                      

3/7/2014 ~market top? ~ 16,453

Market high to market high duration:

2000 to 2007 is 7 years

2007 to 2014 is 7 years


2000 market top

2001 ~ 9/11

2002 ~ Patriot act

2007 market top

2008 ~ tarp 

2009 ~ Quantitative Easing to infinity

2014 market top?

2015 ~ Daniel 9:27 covenant starts the tribulation?

2015 to 2021 ~ 7 years of tribulation?

Makes for interesting conjecture:

Daniel 9:27  And he shall make a firm covenant with many for one week: and in the midst of the week he shall cause the sacrifice and the oblation to cease; and upon the wing of abominations shall come one that maketh desolate; and even unto the full end, and that determined, shall wrath be poured out upon the desolate.


riot-police's picture

I'm sure the cat is fine. He probably got bailed out by a some Fed. official holding a nice Fluffy pillow for him to land on.

The Wisp's picture

the cat is fine they land on their feet, and all that soft snow got there ahead of him, angle of the camera tells you he wasn't that far off the ground.

  Now a Human banker carrying a heavy briefcase full of Fiat.. not so Lucky

BigRedRider's picture

Meh...241 down on DOW?  A mere bag of shells.  Tomorrow it will go to 16,400.


Remember the first law of Yellonphysics:  What goes down must go up.

TheRideNeverEnds's picture

pfft you call this a down day?  


what a joke.


but the dip, new highs by the end of the month.  

The_Ungrateful_Yid's picture

I ve had puts in all week, im getting my buy list ready.

HaroldWang's picture

CNBC and all the guests said this is a one day event and we should all be buying this dip. So I bought all the social/internet stocks and every biotech that is trading above 15 P/S. I should be in a new Tesla soon! Hey, wait, now there's another cheap one.

Winston Churchill's picture

Yeah, like they will be holding over this weekend, with war drums beating.

Afternoon selloff, probably big.

disabledvet's picture

causii bellum?

I really don't want to see the West and Russia at war.
I find no one against it really.

We used to have debates about these things.
Can't speak for "the old country" but it's really sad when the best a billionaire can buy is "jet disappears" for 5 friggin days straight.

no one takes serious business seriously. maybe a big war is just what Russia and the West deserve in the end.

Downtoolong's picture

CNBC clarifies "you can't find any single reason for this selloff"

Perhaps the reason is that all those Muppets who once acted on their advice, “Where else are you gonna go”, have just realized, “There is no place to go that is safe”.

P.S. I think the Cat On A Cold Tin Roof is even funnier than the deer in the headlights. Hilarious.  

AbbeBrel's picture

OT but ZH red meat: great opening paragraph:

<< Balzac's great novel “Lost Illusions” ends with an exposition of the difference between “official history”, which is “all lies”, and “secret history” – that is, the real story. It used to be possible to obscure history's scandalous truths for a long time – even forever. Not anymore.  >>

DirkDiggler11's picture

One has to wonder, why would the Chineese let their first credit default happen just as the situation in the Ukraine is heating up ? I think the US may not be the only major player on the world stage looking to get into a war to distract their citizens ...

John Law Lives's picture

CNBC clarifies "you can't find any single reason for this selloff"

Do those SOBs ever make such observations when the market is artificially pumped...


monopoly's picture

And have a nice day. Geesh. What a mess.....Except for what many of us here invest in. 

g&#039;kar's picture

Any chance of one last PM crush before the end?

Godisanhftbot's picture

 There's only one reason for this selloff

 Shock and awe at the con game that is bitcoin.


fuu's picture

What ever happened to CONTEXT?