Dow-Stockalypse-Wow: Bonds & Bullion Soar As Equities Crash

Tyler Durden's picture

On a day like this - we deserve two clips...

And of course...

  • *S&P 500 FALLS 2.1% FOR WORST DAY SINCE FEBRUARY 2014

 

With the biggest volume for this time of year since 2011...

 

And here's why...

 

It's not over yet...

WE'RE GONNA NEED A BIGGER BALANCE SHEET

 

So let's dive in - here is the US equity indices Since their kneejerk pop after FOMC Minutes...NOT "Off The Lows"

  • *S&P 500 SLIPS BELOW MARCH LOW OF 2,040, BOTTOM OF TRADING RANGE

 

And on the week...CARNAGE!

 

But futures show the swings even more dramatically... China China China...Fold...

 

Here are all the major stock indices showing the level of retardation...

 

And since the end of QE3...Small Caps are now unchanged, Dow and Trannies notably red...

 

VIX exploded back above 19...

 

65% Off Sale in TWTR...

 

and 18% Off Sale in DIS...

 

Surprise!!! Energy stocks are collapsing back to credit and commodity reality.. NOTE: Energy Credit Risk is at a record high 1110bps!

 

Who could have seen that coming?

This has been worrying us for a while...

 

Stocks cratered to catch down to credit's reality once again... for the 3rd time in 10 days...

 

But stocks have a long way to go to reality...

 

Treasury yields collapsed with 10Y pushing back towards a 1 handle...10Y 2.07% lows, 30Y 2.74%

 

This leaves the entire Treasury complex lower in yield on the year (but but but all those clever economists said rates would rise?)

 

Swiss Franc contonues tobe well bid, as is the EUR, as Yellen popped the dollar bid bubble (albeit maybe briefly) yesterday with her confusion... This is the biggest 2day drop in USD Index in 3 months and closes at its lowest in 6 weeks...

 

 

Commodities all gained on the day (as the USD dumped) but crude was technically driven by the expiration...

 

While the carnage in stocks grabbed the headlines, the last 2 days have seen the biggest surge in gold prices sicne 2014...breaking back above its 50-day moving average...

 

Gold and Silver soared...

 

And finally this trend is not your friend...

 

Bonds are now the best performer of 2015 (up very modestly) with gold and silver ahead of stocks...

 

Charts: Bloomberg

Bonus Chart: Is Oil Cheap? Is Gold Expensive?

 

Bonus Bonus Chart: with a big h/t to @RaoulGMI - This is the most important trendline in the world right now... which way next?

 

Bonus Bonus Bonus Chart...

 

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RougeUnderwriter's picture

Dead Shemitah bounce coming tomorrow

mtndds's picture

I dont believe it.  TPP will bring the market up 350+ points tomorrow.  The FED controls the markets now.

TeamDepends's picture

Yep, tomorrow could be real interesting. If we get hit with a "cyber attack" on the banks then it is game on.

TeamDepends's picture

And Deez Nuts could be next POTUS.

Automatic Choke's picture

When in trouble or in doubt, run in circles, scream and shout.

saints51's picture

So how many times do we see market breaks

BATS, NASDAQ Declare Self-Help

 

tomorrow?

Silky Johnson's picture

Huzzah! Huzzah!  Keep this shit up for the rest of the year.

IRC162's picture

Friday selloff on steroids coming in about 16 hours, fasten yer chinstraps

weburke's picture

thanks for the deer bonus chart

Keyser's picture

Ummm, chart porn... I hate to say, but the day is coming when all of the doom-porn advocates will be vindicated...

DeadFred's picture

Coming soon by the looks of it.

Closet Boy's picture

Along with the suggested crash helmet, should I wear a cup?  

MalteseFalcon's picture

"not one dink body legt alive..."

Save_America1st's picture

This just in:  Chef from South Park will be the VP candidate on the Deez Nuts campaign.

 

https://www.youtube.com/watch?v=EIl-6UnlGVs

 

Kaervek's picture

Until everyone fuken buys the fuken dip

CheapBastard's picture

Stawk Mahkit crash.

 

Very Bullish!

Marvin the Martian's picture

damn you cheap bastard makin' milk come out my nose

Takeaction2's picture
Takeaction2 (not verified) CheapBastard Aug 20, 2015 8:35 PM

Stawk Mahkit Cwash....Vewy buhwish  ....Fixed it...Learn to speak fluent Asian.

Cadavre's picture

Kram-Me where the sun don' shine Kramer will story it down in not tooooo atypical CNBUTT-BOBBING-HEAD fashion as a slight correction and a buying opportunity (in times like these betting against Bru-Ha guy is mostest profitable) and receive a walking cane for the lame ass leg-less script from our very famous lunchtime, Wendy's Triple Cheeseburger stuffing triple chin, Maria Barta-farta-Lobotomy, who reality has just gifted with the perfect segway to ask the mafia insiders adorning the broadcast desk the timeless question, her only question, "Is this the time for retail investors to get back into the market?", with all the sincerity a puppet can possibly muster.

Judging by volume. retail has been out of the market for quite some time. However, the volume patterns do look a lot like they did before the S&P 666'd.

The preemptive FED news should't be trusted. It may be just another FMOC short squeeze scam. Thr FED's words have never been an indicator of FED policy. 

But, I do know, however,  that FINALLY, my inverse leveraged ETFs are almost at break even - and trend like real inverse bets - even without a logarithmic scale!!!  - shit I might make a few pennies off the sale after Mr. Broker takes his pound of flesh, providing the chaps that bundled them don't split or emergency-shelf `em.

DaddyO's picture

WOW, best bit of chart porn on ZH in quite some time!

I'm sitting here breathless...

The Shemitah comment was excellent, just wait until Friday 9/11/2015 the last day of trading before the official shemitah on 9/13/2015.

Just sayin....

DaddyO

DrLucindaX's picture

What you're saying deserves to be heard. There are going to be ups and downs, and ups and downs, as they desperately try to keep this corpse afloat until the occult timeline kicks in. This is all treading water now, until September. Then things are going to shit for real. 

Implied Violins's picture

Yup. They'll break out the shock paddles and get the corpse to move tomorrow. They'll keep the life support going just long enough to sell the kidneys to the highest bidder. They will probably sell the corneas tonight and maybe a few ligaments to Tommy John patients to cover the next few week's bills...

freewolf7's picture

I know all those who are saying this thing is gonna go back up are putting money on that, right?

Save_America1st's picture

9/23/2015:  The Convergence

Picked this vid up from a link at Silverdoctors.com just now.  It's a sermon about all the coincidences of warnings about bad shit happening on 9/23 or roughly 9/22 through 9/24 in 2015 from Biblical references, movies, cartoons, events, etc. 

The pastor does a good job of keeping it light and not crazy conspiratorial...he's just trying to show all these things that seem to coincidentally warn of bad shit happening possibly on or around 9/23 of 2015. 

https://www.youtube.com/watch?v=3HdeVTm5G5k

 

Crash Overide's picture

Watch... 700 point DOW rally tomorrow because they can.  :(

Gold monkey hammered -$50

Fake alien invasion for lunch

Everything is awesome

Pseudonymous's picture

That's what I call a presidential pair.

Pool Shark's picture

 

 

Leave it to Carrot Top to confuse a Deer with a Cow...

 

HardlyZero's picture

Just trying to work-in a Bullard-Cramer-Liesman-Gartman meme and have CarrotTop pop up in the middle !

Ready for Vegas.

Maybe plug-in some of those new new entertainment stocks ... should generate some new fluffer bux.

wmbz's picture

Yea, but the four leggeds smell better and are far, far prettier!

Squid Viscous's picture

that's her fake "shocked I made so much trading live cattle futures" face

logicalman's picture

Criminals have to start somewhere!

 

Implied Violins's picture

HA! I think I'll print out that pic and tape it to the inside of my toilet lid. The bitch can be shocked at my girth while I spray her with piss. Win-win.

Save_America1st's picture

I dunno...hmmmmm....

I just don't know....

there's somethin' about 'er...somethin' around the eyes...

reminds me...

reminds me of a homicidal sociopath...

Yup...now I'm sure of it...

I hate 'er

Trucker Glock's picture

"Until they don't."

Until they can't.

Lets Buy The Dip's picture

you got it, and ahead of most people in here. I know everyone on ZH, thinks this is going to hell in a hand basket. But that kind of thinking might be wrong. 

 

why? This guy from OZ who is accurate, said something intersting here ==> http://www.bit.ly/1fMcakI   he is saying look to the market psychology, as this might be a nice dip to buy soon, one could make off like a bandit!!! Things are getting very oversold, here. And it could make you nice profits. 

High-correlation environments, like the markets have seen since the Great Recession and the Federal Reserve's aggressive intervention efforts, present challenges to active managers and those looking to employ diversified portfolios. Correlations among the S&P 500's 10 sectors peaked at 95 percent in 2011, meaning almost perfect movements in the same direction, according to Convergex, a New York-based brokerage.

 

Amid a lot of bad things happening to the market—think slumping oil prices, global growth weakness and the colliding and conflicting goals of the world's central banks—one development has loomed as a marked positive: Declining correlation between individual stocks and sectors.

Correlation is simply a percentage or ratio measure of how individual stocks, sectors or asset classes move up and down at the same time.

High-correlation environments, like the markets have seen since the Great Recession and the fed reserve aggressive intervention efforts, present challenges to active managers and those looking to employ diversified portfolios. Correlations among the S&P 10 sectors peaked at 95 percent in 2011, meaning almost perfect movements in the same direction, according to Convergex, a New York-based brokerage.

So in laymens terms, it means a HUGE BOUNCE up on the market is coming soon. WHEN? well that is anyones guess, but its coming. And will be very very significant. And ruin the bears. :-)

SheepRevolution's picture

So it begins... The crash we all have been talking about the last 5 years has arrived.

Good luck everybody!

Nikki Alexis's picture

Seriously?  Down a few % from all time highs and doomsday is upon us?  Have you been paying attention since March 2009?  Yes, I know, this time it's different.

SheepRevolution's picture

Look at the stock markets abroad and maybe (or most likely, maybe not...) you might understand.

Oldwood's picture

Look at the graph from 08. It didn't crash in a day, but there most definitely was a trend downward just the same. The racheting allows people to stay in because they are almost as afraid of missing the up as they are in participating in the down.

Excursionist's picture

The chart porn has to be taken with a grain of salt.

Not too long ago you saw a ZH post every other day about the S&P 500 being buoyed up not by the stock of paper on the Fed's balance sheet but by the flow of paper onto the balance sheet.

Yet here we are with charts overlaying S&P 500 levels with stock levels.