This page has been archived and commenting is disabled.

High Beta And Yield Celebrate Lehman 6 Year Anniversary By Plunging

Tyler Durden's picture




 

It appears today's weakness in stocks (most notably high-beta momo) and bonds (HY credit weakness) was triggered by two "ma"s - grandma Yellen and grand-poohbah BABA's Ma. Hawkish FOMC concerns took the shine off HY credit (and stocks) but Treasury bonds rallied modestly (5Y -3bps, 10Y -2bps). However, high-beta momo stocks dragged Nasdaq and Russell lower as 'smart money' proclaimed this was making room for the Alibaba IPO (which raises the question - if there is so much pent-up demand money on the sidelines just dying to be lost in the stock market, then why were so many high-beta, high-growth, momo names being sold today, theoretically in order to make room for the BABA IPO?) The USDollar ended marginally higher (GBP weakness, EUR strength) but most commodities gained on the day (Copper down on China) with WTI back to $93. Stocks did have a mini-melt-up on absolutely no news whatsoever into the last hour but gave most back. The Russell 2000 is -0.5% in 2014.
 

A look at the futures market reaction to the good news (Empire Fed) and bad news (Industrial Production) shows neither had any impact on stocks.

High-beta stocks led the Nasdaq and Russell lower on the day (and Dow 'safety' higher)...right from the US open... The Energy sector was the leader on the day (as oil rose) and Chevron added 12 points to The Dow alone...

As is clear here...

 

Notably The Russell 2000 once again broke its major technical support and bounced (50-, 100-, and 200-DMA)

And "Most Shorted" was weak but squeezed late on...NOTE - the buying panic that occurred around 1400ET...

HY Credit broke early - squeezed with everything else - then reverted wider again...

 

VIX also decoupled into the close - after being abused for the ramp...

FX markets were relatively calm - modest weakness in GBP (after 38.2% retracement bounce of Scottish poll weakness) and EUR strength

 

AUDJPY seemed in some control over stocks - but correlations to JPY carry are breaking down in general...

Treasury yields fell on the day (short-end outperformed) after weak industrial production data

Commodities rose despite small gains in the dollar, WTI over $93 and Gold $1235, Copper slipped further after China weakness

Charts: Bloomberg

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 09/15/2014 - 16:04 | 5219788 summerof71
summerof71's picture

There won't be enough cotton, dye, and linen to helicopter drop when the next Lehman moment erupts...

AU/AG47 looking mighty fine at these levels

Mon, 09/15/2014 - 16:13 | 5219820 Winston Churchill
Winston Churchill's picture

Wait until FOMC day to buy those PM's.

Always slaughtered that day, its a tradition.

Mon, 09/15/2014 - 16:15 | 5219837 HedgeAccordingly
HedgeAccordingly's picture

Thiel who's macro fund has lost 7 billion .. talkign down to Icahn - http://hedgeaccording.ly/2014/09/peter-theil-carl-icahn-shouldnt-dictate...

 

Mon, 09/15/2014 - 16:12 | 5219814 Son of Loki
Son of Loki's picture

A 50% correction is certainly possible my broker told me since in 2008 the market was up 100% an dit crashed 50%; he said this time the market is up almost 200% with extremely low volumes and very weak to zero fundamentals.

50% is alot of money for me. I don't want to have to eat [cheap] cat food again, or sleep in the trunk of my Pinto or fight with the veterans for the few spaces under the Interstate.

Mon, 09/15/2014 - 16:31 | 5219891 MPS4
MPS4's picture

Fuck you and your Little Bitch comment about Veterans. Instead of being such a douche and sucking at life, why don't you do something to honor the Men and Women that selflessly sacrificed for the freedom you enjoy so much and allows you to be such a Pussy. Clearly you're blowing your Broker enough to afford a donation as a tiny gesture of your appreciation.

Mon, 09/15/2014 - 17:13 | 5220005 FuzzyDunlop21
FuzzyDunlop21's picture

Cant tell if this is a joke or not. Why do you have a broker? Is BTFD too complex a strategy for you? And why the fuck did you eat cat food? The fuck is wrong with you?

Mon, 09/15/2014 - 16:38 | 5219909 oudinot
oudinot's picture

I'm with MPS

For the Grace of God you aren't a veteran in sorry straits.

Shame on you.

Mon, 09/15/2014 - 18:08 | 5220195 Rouge Trader
Rouge Trader's picture

Certainly hope Son of Loki ends up under the interstate highway in 2017 once he gets slaughtered with the rest of the sheep. 

Mon, 09/15/2014 - 19:06 | 5220396 CaptainSexy
CaptainSexy's picture

Any explanation for the big price spike that came out of nowhere at around 14:25 ?

Do NOT follow this link or you will be banned from the site!