Carnage: Worst Week For Stocks In 4 Years, VIX Soars Most Ever

Tyler Durden's picture

Only one thing seemed appropriate...


*  *  *

The mainstream media really nailed this move in the past month (here and here)

  • China's worst week since July - closes at 5 month lows
  • Global Stocks' worst week since May 2012
  • US Stocks' worst week in 4 years
  • VIX's biggest weekly rise ever
  • Crude's longest losing streak in 29 years
  • Gold's best week since January
  • 5Y TSY Yield's biggest absolute drop in 2 years

*  *  *

Did you get message Fed?



So let's start with stocks...

Bloodbathery... This was the worst week for global stocks (MSCI World) since May 2012


And the worst week for US equities since Nov 2011...


Futures show the pain started with China PMI, then dumped as Europe collapsed,  then there was no help from the machines as gamma was so imbalanced...


Of course we saw The BoJ in da house to help squeeze stocks with some USDJPY crushing...but that only worked for the small caps (easiest to squeeze)... and then it all collapsed...


Putting these moves in context, the red lines show how long since the US Majors are unchanged...


Dow enters correction... this was the 9th largest point drop in the history of The Dow...


Financials and Energy were monkeyhammered this week (as both were completely decoupled from their credit markets)...


Financials crash...


And Surprise!!! Energy stocks collapse to credit...


Who could have seen that coming?

Carnage in AAPL slammed the Nasdaq...


Since QE3, all but The Nasdaq are now red... (and Nasdaq is collapsing fast)...Trannies down almost 10% since the end of QE3!!


VIX exploded this week with the biggest jump ever...


And The VIX ETF saw its biggest 2-day rise since 2011 (no wonder with 61.7mm shares short agaionst just 60.6mm outstanding)


As VIX catches up to credit risk...


and before we leave stock-land, her is perhaps the 'spookiest' chart... a Fibonnaci 61.8% extension of the 2007 high to 2009 lows 'nails the top' for now... (h/t @allstarcharts )

*  *  *

OK... so let's look at bond-land. Treasury yields collapsed this week with 10Y nearing a 1 handle... 5y yield down over 17bps is the bigest absolute drop since Sept 2013


Leaving the entire bond complex lower in yield on the year...


And stocks finally caught down to credot's reality...


FX Markets have seen some serious carnage this week...

The US Dollar index futures contract was down 2.7% on the week - its biggest drop since June 2013...


EM FX was a disaster...


Finally - the commodity space...

Very mixed picture with PMs holding gains (despite Silver's slam today) as industrial commodities were clobbered...


Bloomberg's Commodity Index is at its lowest since 1999...


Crude oil fell to a 3 handle -


Dropping for 8 straight weeks for the first time since 1986...


Note that gold reversed today early on after touching its 100DMA... and silver revsed today to its 50DMA


And finally, because we suspect the mainstream media will be looking for an excuse to explain all this carnage... here is the culprit...

Charts: Bloomberg

Bonus Chart: Today...

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i_call_you_my_base's picture

Just people taking profits.

TeamDepends's picture

No, they want the sheeps reeling when the knockout punches come next month.

TongueStun's picture
TongueStun (not verified) johnvallo Aug 21, 2015 3:19 PM

Are you stupid? Just buy the fucking DIP

Squid Viscous's picture

keep averaging down, that has killed more jews than hitler

saints51's picture

I had to call in the green arrow PPT. We have a serial down voter who lost it all today. Sorry buddy but at least you got some free drinks.

NoDebt's picture

<NoDebt strolls in from his vacation taking a drag on his smoke, looks around>

You gotta be kidding me.  Look at this place.  It's a fucking disaster.  Carpets have puke on them, beer cans everywhere and.... oh, just look at your Grandmother's antique china closet!

You fucking motherfuckers.  I go away for one week- ONE FUCKING WEEK!!- and you wreck my house!  What the hell happened here?  I left you all in charge because I thought you were responsible people.  Looks like I fucked up by trusting you.  I don't even know what to say.  Just.... just.... get the fuck out.  I don't even want to see you right now.

(Seriously, what the hell?  I go on vacation for one week and the whole fucking market falls apart.  I'm disappointed in all of you.)


Implied Violins's picture

You let Tom Cruise housesit?

Bullish. Krugman thanks you for your sacrifice.

ajax's picture



"Pop Goes The Weasel", violin NOT implied:

"That's the way the money goes..."

J S Bach's picture



"Hi, uh... Janet?   Lloyd here again."

"Shalom, Lloyd."

"Yeah... whatevevah... shalom to you, too.  Hey, we've had a pretty serious drop in the ma-"

"Yeah, yeah, I heard.  So how much do you need this time?"

"I dunno, maybe a couple hundred billion?"

"Sigh.  Okay... you'll have to wait til Monday though.  I'll have to call Evelyn in the City to get approval on this one.  Shouldn't be a problem."

"Thanks, gworgeous.  We'll have to get together soon and toast QE with a little Manischewitz".


* click *

Ness.'s picture

For the love of God - if there was ever a perfect song for today - Steely Dan nails it.  Enjoy Black Friday boyz!

When Black Friday comes
I'll stand down by the door
And catch the grey men when they
Dive from the fourteenth floor

When Black Friday comes
I'll collect everything I'm owed
And before my friends find out
I'll be on the road

cnmcdee's picture

I am sorry to disappoint anyone but this could only be the beginning.   Having done prophetic interlock analysis for decades I have a responsibility to share what I suspect and expect to happen.  I am strongly suspecting the Japanese Quake may hit in the next two weeks.  It will be a magnitude 9.0 plus, crater their markets and heavily affect us here, when it flattens Tokyo.  It will cause a 20-30 foot tsunami to hit the coast of California, causing much shoreline damage, and mansion mangling. If you see this you have two to three weeks to get 100 miles inland from the west coast.  A magnitude 17.0 earthquake is going to strike in the Pacific ocean and trigger a tsunami that will take out Vancouver, Seattle, Portland Oregon, Hawaii, Vancouver Island.  I know that sounds absolutely incredulous.  Two warning quakes are supposed to hit Vancouver Island a 7.0 and a 7.4 (causing a 5 foot tsunami to travel up Juan de Fuca straits)..    When the 17.0 goes 7-10 days after the 7.4 that hits Vancouver Island The tsunami that will hit Vancouver Island will be 1200 feet high and wash all the way inland to Hope.  In Portland Oregon it will be 90 feet high, and 100 feet at the Los Angeles River. 3-400 feet for Seattle?

It will shutter banking for 3-6 months,  bring anarchy and lawlessness and I am strongly expecting a September window or the month after (October)  -  It may not even happen this year, but if the Japanese quake happens this year, then the Great Northwest Quake will.

Again I do know know the year but the moment you see the Japanese quake it is time to get away from the shoreline.




Keyser's picture

(Seriously, what the hell?  I go on vacation for one week and the whole fucking market falls apart.  I'm disappointed in all of you.)

You fucked up, you trusted us...  
Osmium's picture

OR, the FED will cave to Wall Street's temper tamtrun and unleash another round of QE.  Deep down, you all know it will happen.

Bastiat's picture

Magnitude 17??  17??  REally?  Put down the pipe.

"Beyond 9.5, while extremely strong earthquakes are theoretically possible, the energies involved rapidly make such earthquakes on Earth effectively impossible without an extremely destructive source of external energy. For example, the asteroid impact that created the Chicxulub crater and caused the mass extinction that may have killed the dinosaurs has been estimated as causing a magnitude 13 earthquake (see below), while a magnitude 15 earthquake could destroy the Earth completely. Seismologist Susan Hough has suggested that 10 may represent a very approximate upper limit, as the effect if the largest known continuous belt of faults ruptured together (along the Pacific coast of the Americas).[20]"

    J S Bach's picture

    Exactly, Bastiat...

    Anything past Magnitude 15.0 is like the death star blowing up on Star Wars.

    I'm not the most optimisitic person in the world, but some of this doomsday spiel is completely laughable.  Be realistic, folks.  The "end" is not near.  The "beginning" is near.  That is... the start of a whole new calendar -- once the present satanic rulers are flung into their pit by the eternal laws of nature.  This WILL happen.  We cannot predict when nor how - but it WILL happen - as sure as the sun rises in the east and sets in the west.

    PTR's picture

    Tossing another angle into this: WaveX- the big wave of galatic/plasma energy that we're in right now and peaks in late September (take THAT shemita.)


    If you like esoteric stuff (or going down rabbit holes from time to time) I'd recommend zengardner and in5d  Good stuff.



    Implied Violins's picture

    If you like esoteric stuff, check this out:

    Ken makes sweet, juicy love to rabbit holes!! And his predictions are as likely to happen as anyone's!

    Implied Violins's picture

    ...but...but...the three days of darkness? And the Earth completely stopping its rotation? Then going in reverse? The sun will set in the east!!! Someone somewhere on da 'net said this would happen, so it must be da TRUF!!

    websitefound's picture

    Magnitude 17 earthquakes..hmmm interesting point of discussion on a financial market thread.  This reminds of the time some door knocking religious nuts came to my house when I was about 15 years of age.


    After a brief discussions where we concluded that I don't follow any mainstream religion, the wise christian, jevohah witness whateva...came back with the very insightful "Thats a fine point of view for now, but what are you going to do if the world ends tomorrow?"  I'm assuming they were heading down the drowning catholic idea.....

    My insightful reply was "Well i'm not going to waste my last day on earth talking to you about this shit...goodbye"

    Which leads to back to my original point, if we are going to have Magnitude 17 earthquakes, is the effect this will have on stock markets really the biggest concern?  I'm thinking not, and I'm not going to run for higher ground as much as i'm going to do a quick line of coke and find the nearest hooker.

    Also do bigger earthquakes necessarily equate to bigger tsunamis?  As a general rule yes, but i'm thinking there just may limits to the size one wave can get, you must be displacing a shit lot of water for a 1200 ft high wave....gravity???? Maybe less timeon prophetic interlock analysis and more on physics.

    wizteknet's picture

    Shit happens warned u...

    pelican's picture

    But Kramer says it is time to buy!

    stormsailor's picture

    okay, no debt you fucked up, you trusted us, no big deal you call your insurance company and we will all swear that somebody else must have broken in and done all of that we were all with you and the insurance company pays for it all

    greenskeeper carl's picture

    @ no debt, apparently there is a pretty large sell off in tha markets, there was a huge explosion in china, and a bunch more people, including a few regulars, made repeated offers to perform fellatio on Donald trump.

    That's about all you missed...

    stormsailor's picture

    duh, we just want to jerk off on his toopee, reminds me of a 50's porn star's snatch

    saints51's picture

    You missing all the fun. Could of saved you a ton of money by hanging out with all of us.

    Crash Overide's picture

    "(Seriously, what the hell?  I go on vacation for one week and the whole fucking market falls apart.  I'm disappointed in all of you.)"


    Did they at least leave you cold beer and a bottle of bourbon for you're return to the market?  haha

    new game's picture

    are you serious? the booze is gone, hello, obviously u didn't party like a rock star. 

    Ozkiwi's picture

    You could be waiting a long time for the next upswing. Depends on whether you are looking for a quick buck or a long term investment. Personally, I would wait till September 15 if I was getting into the stock market - just out of curiosity to see if the Shemitah predictions play out. If there's a crash over the weekend of the 13th as predicted, that would be your big buying opportunity.

    Relentless101's picture

    Keep this up and the market may get interesting again. Just have to sit and continue to wait.

    OldPhart's picture

    What's a thousand point drop in the DOW in five days, anyway...nothing to see here.

    Hitlery_4_Dictator's picture

    I'm such a moron forgot my Wife had a 401k account that we stopped contributed to years ago and I forgot to sign-in and sell, now it's down for "Technical difficulties" prolly lost 5-10k this

    Hitlery_4_Dictator's picture

    oh well we both knew we would never see that money anyway.....such a scam

    pelican's picture

    It is quite a scam they have set.  They have it set up they that contributions are tax deductible and encouraged the matching contributions bullshit.



    Supernova Born's picture

    Why do galley slaves chained to their oars come to mind?

    Normalcy Bias's picture

    ...But, you'll eventually have IOU's, Savings bonds, or some other instrument 'backed by the full faith and credit of the U.S. government.'

    That, my friend, will enable you to sleep well at night!

    Bill of Rights's picture

    Take heart it was never your money to have in the first place .

    Hitlery_4_Dictator's picture

    LOL I know, I took mine out years ago when I started my onw biz.....I jsut sold and bought "stable" government debt, no cash option...what a scam

    Ass Burger's picture

    I just filed the forms to withdraw mine this week...I hope they process it soon.

    IridiumRebel's picture

    Folks gonna be shemitah'n the bed....

    McCormick No. 9's picture

    Oh my god! I have shemitah on my fingers!

    Shemitah gone down on me, I dunno, I was drunk...

    Beat her, shemitah, I'll just slap her around a bit.

    That's all the shemitah puns I can think of right off the top of my head.

    johnvallo's picture

    Just 10,000 more to go for the DOW to be back to normal.

    swass's picture

    I am thinking we will form a neckline at SPX 666.

    Winston Churchill's picture

    Lagarde said 777. Could be Dow or S + P or both.