This page has been archived and commenting is disabled.

Biotech Bloodbath Sends Stocks To Longest Losing Streak Since Lehman; Credit Crashes Most In 4 Years

Tyler Durden's picture




 

For 2015... you get nothing!!

 

The quarter's carnage:

  • Russell 2000 down 12.7% - worst qtr since Q3 2011
  • Dow down 8% - worst qtr since Q3 2011
  • Nasdaq down 7.9% - worst qtr since Q3 2011
  • S&P down 7.4% - worst qtr since Q3 2011

Not pretty:

 

But credit markets were a disaster:

  • HYG (HY Bond ETF) down 6.4% - worst qtr since Q3 2011
  • IG Credit Spread +23bps - most since Q3 2011
  • HY Credit Spread +147bps - most since Q3 2011
  • HY Energy Spreads +326bps - worst since Q4 2014 (2nd worst ever)

HYG lowest since Oct 2011:

 

Commodities were mixed... Gold's worst qtr since Q3 2014, Crude down 24% in Q3, and copper's worst qtr since Q3 2011...

 

Year-to-Date - The USD is higher and everything else is lower, but bonds are the best of the bad bunch.

 

The Dow Industrials have now fallen for 3 straight quarters - the first time since Lehman, and only the 2nd time since 1978.

 

*  *  *

Back to the third quarter: Bonds dramatically outperformed in Q3.

 

Biotechs down 18.4%  had their worst qtr since Q2 2002

 

Biotechs back into the red year-to-date...

 

With Utes the only sector in the green for Q3 and Energy the biggest loser...

 

*  *  *

A Look At The Month...

Bonds outperformed...

 

Stocks were all red...

 

Commodities were mixed on the month with crude the biggest loser...

 

*  *  *

And Finally Today And This Week...

Given the major underperformance of stocks vs bonds this month (and quarter) it makes sense that flows would tend to drive stocks up as weights are equalized ahead of Q4... but note that this is not sustained buying pressure but simple allocations shifts at the margin..

Today saw month-end exuberance in most asset classes... The buying began after the close yesterday...Late-day panic buying ensued...

 

Equities bounced today (after terrible data)... (nasdaq outperformed into month-end with its best day in 3 weeks)...

 

But remain weak on the week...despite valiant effort in The Dow ramp today...

 

For the 2nd day in a row, VIX was clubbed like a baby seal into the close..

 

It appears once again that stocks are the last to get the message...

 

Treasury yields followed the usual pattern selling off early and rallying late to the week's lows...

 

The USD rose on the day as EUR selling trumped JPY buying...

 

Commodities were mixed today (and on the week) as copper soared (more QE?), crude was insane and gold and silver slipped...

 

Crude oil's trading is just insane...

 

Charts: Bloomberg

Bonus Chart: Everyone's favorite "no brainer" gadget maker is now negative for the year... Worst qtr since Q1 2013

 

Bonus Bonus Chart: Equity protection (VIX) has once again decoupled from credit protection (CDX HY)...

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 09/30/2015 - 16:08 | 6612701 Soul Glow
Soul Glow's picture

Today was the end of the quarter.  No worries.  BTFD.

:)

Wed, 09/30/2015 - 16:34 | 6612851 LowerSlowerDela...
LowerSlowerDelaware_LSD's picture

Thank you.  I was having "since Lehman" withdrawals.

Wed, 09/30/2015 - 17:36 | 6613138 BurningFuld
BurningFuld's picture

Janet, when Ben was in charge this did NOT happen!

Wed, 09/30/2015 - 16:35 | 6612853 Hype Alert
Hype Alert's picture

A little painting of the tape for month and Qtr end. 

Wed, 09/30/2015 - 16:37 | 6612864 ZippyDooDah
ZippyDooDah's picture

SG

Maybe you didn't hear. BTFD comments are outlawed from now on. You have been warned. Kisses.

Wed, 09/30/2015 - 17:46 | 6613183 Pure Evil
Pure Evil's picture

OK, I'm on board.

Let's BTFATL!

(Buy the fucking all time low)

Wed, 09/30/2015 - 16:40 | 6612876 negative rates
negative rates's picture

Yeah but that hangover was a duzzie, don't need another one of those for 6 months.

Wed, 09/30/2015 - 16:44 | 6612892 junction
junction's picture

Talking about biotech:

WASHINGTON (CBSDC) — A man’s leg burst open after he was bitten by a venomous spider, requiring three operations and a skin graft.

Jonathan Hogg says his leg “resembled something from a horror film” after a brown spider attacked him, as reported by Sky News. Doctors say the venom began eating away at the 40-year-old’s flesh within hours and that he could have lost his leg if it was left untreated.

“The pain was like nothing I’ve been through in my life. By the time I got to hospital my leg was bursting open, there was pus, it was black,” Hogg told Sky News.

http://washington.cbslocal.com/2015/09/30/mans-leg-bursts-open-following...

Wed, 09/30/2015 - 18:16 | 6613314 HopefulCynical
HopefulCynical's picture

Brown recluse spiders are NOTHING to fuck aruond with.

Wed, 09/30/2015 - 16:45 | 6612898 GeezerGeek
GeezerGeek's picture

In other news, the total weight of my Au and Ag finished the quarter unchanged. My Pb was down a little as I engaged in some high-velocity trajectory measurements.

Wed, 09/30/2015 - 17:21 | 6613075 lim
lim's picture

haha, good to see tyler is using the puking unicorn again :)

Wed, 09/30/2015 - 16:12 | 6612722 khnum
khnum's picture

EU to QE trillions,Jap retirement funds to buy  junk bonds,todays window dressing based on abyssmal information- about the only thing making sense today on ZH is Russia bombing the bad guys

Wed, 09/30/2015 - 16:13 | 6612724 Ness.
Ness.'s picture

DOW up 235 points - USTreasuries unchanged - VIX (on the first day of WWIII) bitch-slapped.

 

This is waaay too obvious  - you assholes better start to throttle back on the blatant 'market' manipulations.  Iknow, I know - I said market.  Call it what you will but it's getting far worse than I ever imagined and I'm acutally getting nervous for what's about to come.

CNN is in rare form today.  The engine of WAR is starting to roll.

 

Wed, 09/30/2015 - 16:19 | 6612758 vq1
vq1's picture

I dont have cable but on their website:

"Third quarter was brutal. But these stocks won

"More than three dozen companies in the S&P 500 posted double-digit percentage gains during the third quarter."

boy they really know how to see things glass half full

I guess as long as someone is making money the game can continue on.

Wed, 09/30/2015 - 16:27 | 6612806 CheapBastard
CheapBastard's picture

But my financial advisor says:

"The trend is your friend."

Wed, 09/30/2015 - 16:31 | 6612838 gatorengineer
gatorengineer's picture

Ness.  Pay attention dude, this was the last day of the quarter.  All window dressing, happens every quarter.  Was a great day to go short (er).

Wed, 09/30/2015 - 20:10 | 6613720 Ness.
Ness.'s picture

Today wasn't a great day for anything.  I've been paying attention for a long time gator.  

And yes, I did get short (er).  But that, in no way shape or form, will make me sleep better tonight.

Wed, 09/30/2015 - 16:35 | 6612854 nobodysfool
nobodysfool's picture

So you're the guy who watches CNN....good to know

Wed, 09/30/2015 - 20:03 | 6613697 Ness.
Ness.'s picture

Only if I'm stuck in an airport.  Usually that is sitting in a bar at O'Hare Airport (ORD) due to 14" of global warming.

Wed, 09/30/2015 - 16:40 | 6612874 junction
junction's picture

Whoever fixed the Dow Jones today deserves the Nobel Prize in economics.  The Dow should be renamed the RICO average.  Like LIBOR before, the Dow is controlled by criminals who know that the U.S. economy is collapsing around them as Obama blows more and more coke up his nose.

R.I.P. Joan Rivers.  Now no one will dare make fun of tranny Michelle.

Wed, 09/30/2015 - 16:13 | 6612726 SILVERGEDDON
SILVERGEDDON's picture

There goes the life savings for the sheeple. Poof - just like them there zero apr credit cards, and HELOC second motgages. 

Stoopid sheeple got triple sheared, and are getting the double dip recessdion, too.  

Wed, 09/30/2015 - 16:13 | 6612727 vq1
vq1's picture

"Our findings show that daily changes in 10-year Treasury yields exceeded one standard deviation (?) 58% of the time so far in 2015—considerably higher than the 49% observed last year (Figure 2). The 58% measure is the highest reading going back to 1975, suggesting that recent volatility in Treasury markets is unprecedented."

-from TD securities. 

Wed, 09/30/2015 - 16:14 | 6612733 Kaiser Sousa
Kaiser Sousa's picture

fake ass rigged fucking Fraud Markets....

yeah right, last minute stick save of the Dow yesterday...

and today yet another v shape recovery mid day followed by the famous "last 30 minute blast" to end up just under the morning blatant opening pump....

ON NO POSITIVE ECONOMIC NEWS WHATSOFUCKING EVER!

fuck off......

Wed, 09/30/2015 - 16:19 | 6612760 playdoh
playdoh's picture

LOL, was expected Kaisa. They are sooooooo predictable.

(I mentioned it earlier in another post when market was near lows of the day)

 

Wed, 09/30/2015 - 16:28 | 6612811 CheapBastard
CheapBastard's picture

Maybe there's still, "alot of money sitting on the sidelines?"

Wed, 09/30/2015 - 17:06 | 6613008 Honus
Honus's picture

There’s a lot of macro volatility right now.

Wed, 09/30/2015 - 18:15 | 6613312 stocktivity
stocktivity's picture

It's all Bullshit!!!

Wed, 09/30/2015 - 16:14 | 6612735 Mark Mywords
Mark Mywords's picture

Tomorrow will be opposite of today.

Wed, 09/30/2015 - 16:15 | 6612736 playdoh
playdoh's picture

TRIN sell signal at cash market close paid out fast :)

Watch out for them.

Wed, 09/30/2015 - 16:17 | 6612749 Hard Baloney
Hard Baloney's picture

Well, as long as the rest of the world is hooked on dollars we can expect this to continue. If you gottem, smoke em.

Wed, 09/30/2015 - 16:18 | 6612750 Keltner Channel Surf
Keltner Channel Surf's picture

“Rip it”          from   “Whip It”           by   Devo

**Got this from a Kyocera tech, who found it clearing a paper jam in a printer just outside JPM’s Algorithmic Trading Dept:

Smash that VIX !    Force the bears to flip
Pump up the DAX    Break short-sellers’ backs

When a bottom comes along        (You must rip it)
Before the bulls all say “so long”    (You must rip it)
When the Fed sings different songs    (You must rip it)

Now rip it - Rip the tape - Prop it up - Stick save
Go forward - Stop the red - Try to affect it - It's not too late
To rip it - Rip it good!

When the selling is prolonged    (You must rip it)
Pisani never fills his bong    (Unless you rip it)
No one at Citadel gets paid    (Until they rip it)

I say rip it    Rip it good!    I say rip it    Rip it good!

Smash that VIX !    Buy oil on the dip
Run the bid stack    Deal yourself four jacks

When new lows come along        (You must rip it)
Before they scare off all the longs    (You must rip it)
When the selling gets too strong    (You must rip it)

Now rip it - Into space - Shape it up - Levitate
Go forward - Ignore the Fed - Don’t neglect it - It's not too late
To rip it - Into shape - Gap it up - Keep going straight
Plough forward     - Move ahead - Do not ‘correct’ it - It's not too late
To rip it - Rip it good!

Wed, 09/30/2015 - 16:20 | 6612765 playdoh
playdoh's picture

LMAO, sums it up nicely :)

Wed, 09/30/2015 - 16:30 | 6612827 Keltner Channel Surf
Keltner Channel Surf's picture

I like Tyler's notion of re-allocation 'at the margin', still enough for a 200 pt move given liquidity levels

Wed, 09/30/2015 - 16:42 | 6612885 playdoh
playdoh's picture

LOL, and I called it short covering, stupid me, gonna need a glossary on here

Wed, 09/30/2015 - 16:19 | 6612754 LawsofPhysics
LawsofPhysics's picture

"since lehman"...  LOL!  comedy gold...

Wed, 09/30/2015 - 16:21 | 6612768 ebworthen
ebworthen's picture

I'd love to see the 10-year at 5% with the FED still at 0%.

Oh, and the S&P at the true valuation of 666.

Wed, 09/30/2015 - 16:27 | 6612807 LawsofPhysics
LawsofPhysics's picture

yes, unfortunately we will likely see the ten year at -0.5% before we see 5%.

The S&P will go to infinity as the FRN goes to zero...

Wed, 09/30/2015 - 16:26 | 6612802 commishbob
commishbob's picture

The final chart is, by far, the most interesting. And telling. 

Wed, 09/30/2015 - 16:29 | 6612818 Seasmoke
Seasmoke's picture

Possible QE4 doesn't even make Gold go higher. ...... What planet are we on !!!!!!

Wed, 09/30/2015 - 16:45 | 6612899 Kaervek
Kaervek's picture

The planet of the apes

Wed, 09/30/2015 - 16:29 | 6612821 Vlad the Inhaler
Vlad the Inhaler's picture

DOW, S&P, Nasdaq all in complete lockstep today.  Don't call it a market.

Wed, 09/30/2015 - 16:43 | 6612890 monopoly
monopoly's picture

Excellent review of the day, quarter. Always well done, thank you Zero Hedge. And a movie clip to boot. lol

Wed, 09/30/2015 - 17:00 | 6612969 hoist the bs flag
hoist the bs flag's picture

"whew"...saw the Headline for this article and thought something happened. MOAR STAWKS PLEAZE...

Wed, 09/30/2015 - 17:04 | 6612993 walküre
walküre's picture

Lower highs followed by deeper lows.

Like every woman on the planet. They don't smell better with age.

Wed, 09/30/2015 - 17:12 | 6613035 buzzsaw99
buzzsaw99's picture

Gold's worst qtr since Q3 2014, Crude down 24% in Q3, and copper's worst qtr since Q3 2011...

there's your bloodbath bitchez

Wed, 09/30/2015 - 17:27 | 6613106 Hobbleknee
Hobbleknee's picture

Where's the coverage on Yellen's speech today?

Wed, 09/30/2015 - 17:27 | 6613108 fowlerja
fowlerja's picture

In the new normal...what is up is down and what is down is up...don't see any problems with the charts...I talked to Janet Yellin (in the wind) this morning ...and she is onboard with me on this one..

Wed, 09/30/2015 - 17:43 | 6613170 Lmo Mutton
Lmo Mutton's picture

Where is that definitiopn for "recession" and what was the time frame?

Wed, 09/30/2015 - 18:39 | 6613420 hoist the bs flag
hoist the bs flag's picture

dont worry , they will move the goal post

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