Dow Futures Dump 300 Points From New Year's Eve Highs As China Crashes

Submitted by Tyler Durden on 01/03/2016 23:37 -0500

With China closing the morning session limit down, US equity futures are extending their losses (even though crude futures are holding some of their gains). The initial knee-jerk jump as crude rose on Saudi tensions has been entirely erased and Dow Futures are now down 300 points from New Year's Eve highs... Happy New Year.

China closed the morning session "not off the lows" with a bloodbath in ChiNext and Shenzhen...

With Offshore Yuan crashing over 440 pips - the most since the August deval...

And US futures are tumbling...

But bonds and bullion are bid...

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Your rating: None Average: 4.5 (11 votes)

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Sun, 01/03/2016 - 23:40 | 6993712 Hitlery_4_Dictator

Thanks for calling the bottom again.

Sun, 01/03/2016 - 23:45 | 6993730 scintillator9

Thanks for calling it up 400 again?

Come on, one knows one is dying to do so.

Mon, 01/04/2016 - 00:40 | 6993875 Soul Glow

Anyone else watching gold? Making some impressive moves higher....

Mon, 01/04/2016 - 01:19 | 6993956 Tarzan

Look away, "the markets" are GREAT,

Now pay attention,

^{white guys with guns}

white guys with guns

WHITE GUYS WITH GUNS!

WHITE GUYS WITH GUNS!!

Mon, 01/04/2016 - 02:32 | 6994132 Keyser

Well, that didn't take long to escalate...

And here the numpties were talking about the January Effect... Not this time... Bwahahahaha...

Mon, 01/04/2016 - 07:00 | 6994320 VinceFostersGhost

Welcome to the recovery....

It's gun confiscation time!

El Presidente is finally getting around to the economy.....do you know how many people we're gonna have to hire to confiscate all the guns?

I don't know either...but it's gotta be a buttload.

Mon, 01/04/2016 - 08:18 | 6994568 secretargentman

I believe the proper term for that many people is "hearseload".

Mon, 01/04/2016 - 01:25 | 6993975 mayhem_korner

The only gold I watch is the stack of it that I have. The "price" observed in the "markets" is simply the marginal trade of GLD. The world still hasn't recognized the decoupling of GLD and actual, physical gold. Which is why the latter remains an enormous bargain in my mind.

I believe the "price" will continue to go down until there is broad realization that the manipulators are abandoning GLD to enable cheap acquisition of physical. At some point, the decoupling occurs, and the price of the underlying is revealed for what it by rights should be. Which is many more than 1,000 FRNs per oz.

Mon, 01/04/2016 - 01:45 | 6994035 kamikun

I understand this sentiment. I subscribe to this sentiment (as my - teacher's salary - modest shiny yellow hoarde would attest).

But it will probably be years... eight to ten I feel, before markets rediscover anything like price discovery mechanistics and gold reflates to its 'actual' value in world script. The misallocations will have to burn themselves out, and the herd will have to break free from the CB's forward guidence... that is going to be a slow process and will be fought by the entrenched banks every step of the way

/$0.02

Mon, 01/04/2016 - 01:53 | 6994060 mayhem_korner

When a starfish attacks a clam, it uses suction to open the clam's shell. The clam counters by trying to keep it's shell squeezed shut. But the clam's muscles tire, and the starfish wins out, because it takes no energy for the starfish to exact the effect of the suction.

Time is on the side of the stackers. We are the starfish. Let the clam wriggle and fight.

I don't worry about whether it's going to take 1, 5, 10 or 20 years.

Mon, 01/04/2016 - 01:57 | 6994073 kamikun

Nice analogy. Totally stealing it.

Mon, 01/04/2016 - 07:16 | 6994393 tarsubil

This is the attitude that all stackers need to take. I've seen a lot of people b*tching and moaning about how "last year blah blah blah, whine whine whine". Gold is a generational play. Stack for your kids or even your grandkids, not to make money this year. Our society no longer thinks about generations but today and tomorrow and that is why this place is such a crap box.

Mon, 01/04/2016 - 01:58 | 6994076 Squid-puppets a...

we almost had it a month ago when the comex had 4 tonnes of deliverable left only. The coffin was open, we had the wooden stake in our hands. All we needed was a measley $130m at one stage to finish the vamp, but we let it slip. Back over 10 tonnes now.

Still, in April Shanghai plans to commence its alternative Price Fix

Mon, 01/04/2016 - 04:14 | 6994225 kev the bev

Gold in AUD$ up $30 odd last I looked. Funny business in OZ, .gov threw out some bizzare 6 sigma event job reports that even the MSM over here are calling foul. At the same time gold has been trashed in the last month or so.

Mon, 01/04/2016 - 06:31 | 6994323 Balvan

$1900 -> $1060 -> $1072, yeah very impressive moves higher

Mon, 01/04/2016 - 07:02 | 6994365 VinceFostersGhost

When your 5 million dollar paper account becomes worthless....it will probably seem more attractive.

Mon, 01/04/2016 - 09:23 | 6994820 mayhem_korner

The last time oil was < $40/bbl (Dec 2004), gold was $440. So gold has 2 1/2 times its purchasing power from just a decade ago.

Sun, 01/03/2016 - 23:55 | 6993762 junction

The Plunge Protection Team has to put away their rolled up hundred dollar bills and forget about their now snorted lines of white powder. The game is on with Janet Yellin at quarterback.

Mon, 01/04/2016 - 00:54 | 6993894 chinoslims

Yellen is ready to unleash the Fed's favorite weapon.

https://youtu.be/KBCpyHHKkeI?t=23

Mon, 01/04/2016 - 00:52 | 6993895 Soul Glow

CHINA IS REPORTING TO HAVE HALTED THEIR MARKET FOR THE DAY

I SAY FOR THE DAY!!!! THAT'S TWO HOURS EARLY!

Mon, 01/04/2016 - 01:08 | 6993928 Bunga Bunga

LOL, Happy New Year.

Mon, 01/04/2016 - 06:30 | 6994322 VinceFostersGhost

Halting equities in China boss!

Mon, 01/04/2016 - 08:50 | 6994698 kralizec

I love the smell of panic before the gates even open on the first betting day of the new year.

Mon, 01/04/2016 - 01:16 | 6993946 junction

(SCMP) Trading on the Shanghai and Shenzhen stock markets was suspended for the rest of the day at 1.33pm after the CSI 300 Index fell 7 per cent to 3,470.41.

The markets in the two cities were earlier suspended for 15 minutes from 1.12pm after the CSI 300 Index dropped 5 per cent, triggering a newly launched circuit breaker in the mainland Chinese markets.

Trading on the Shanghai-Hong Kong Stock Connect scheme’s northbound route was also suspended for the rest of the day from 1.33pm following an earlier 15-minute trading halt.

Under the circuit breaker, launched on Monday, the trading of stocks, index futures and options will be suspended for 15 minutes when the CSI 300 Index, which tracks some of the large-cap stocks in Shanghai and Shenzhen, fluctuates by 5 per cent, with trading halted for the rest of the day when the index moves by 7 per cent.

Last year, the CSI 300 closed up or down by 5 per cent or more 14 times, not counting intraday volatility.

Mon, 01/04/2016 - 01:44 | 6994034 Wile-E-Coyote

Closing the market isn't that like letting the late horses to get to the starting gate. And they're off...........

Sun, 01/03/2016 - 23:42 | 6993721 ZomBiEHiGH

<-- SHTF 2016

<-- SDHTF 2016

Sun, 01/03/2016 - 23:52 | 6993755 BiPolarFrenchman

What's the second option there, side dick?

Sun, 01/03/2016 - 23:55 | 6993761 xrxs

S Doesn't HTF was my read

Mon, 01/04/2016 - 00:13 | 6993809 gdogus erectus

Side Dick?

Mon, 01/04/2016 - 00:31 | 6993849 Soul Glow

Sneaky side dick, Yellen's favorite.

Bernanke's too.

Mon, 01/04/2016 - 01:33 | 6994002 sun tzu

Does that mean you have a dick growing from your hip?

Mon, 01/04/2016 - 00:10 | 6993801 stumbLebum

C'mon, boner, pay attention....

Sun, 01/03/2016 - 23:56 | 6993764 Make_Mine_A_Double

I was looking at our next 2 vessels to PRC this morning - empty. Not one rock or tree. Granted Lunar is coming up Feb 8th - but I never seen this before. I don't think they can access USD unless it's critical infrastructure.

Sun, 01/03/2016 - 23:57 | 6993767 mayhem_korner

Couldn't happen to a nicer index...

Sun, 01/03/2016 - 23:58 | 6993773 I Write Code

As goes the pre-open goes the open.

As goes the open goes the day.

As goes the first day of the year goes the year.

Have a good one!

Mon, 01/04/2016 - 00:01 | 6993778 i_call_you_my_base

Ban on china selling expires this week. Wonder what day this week they'll extend it.

Mon, 01/04/2016 - 00:08 | 6993794 Yen Cross

Charts -R-Us?

Mr. Stay Awake?

Mon, 01/04/2016 - 00:09 | 6993797 stumbLebum

Equities will come roaring back in 2016, leaving Zero Hedge to implore its dumb money readership to "Buy Silver and Gold!" and effectively double down on their already disastrous losses.

Morons, think of your destitute families before you commit yourself to this insanity. Is it really fair for your 80 IQ self to impoverish them like this?

Mon, 01/04/2016 - 00:21 | 6993827 Deathrips

What the fuck were we thinking...promises from liars are REALLY valuable!

RIPS

Mon, 01/04/2016 - 00:31 | 6993851 i_call_you_my_base

You people only show up when the market is down. If you were long and lost money, it's not ZH's fault.

China in contraction, india just printed contraction as well, commodities tanked and fed raising rates. Good luck with that roaring back thesis.

Mon, 01/04/2016 - 00:35 | 6993865 JamaicaJim

OK Mr. 2 weeks in...troll much?

Fuck off

Mon, 01/04/2016 - 01:43 | 6994027 o r c k

Mon, 01/04/2016 - 00:10 | 6993800 Yen Cross

It would take a long time for underfunded pension plans (e.g., 60% funded) to run out of cash, given the long duration of plan liabilities. But as investors learned in Puerto Rico and Greece, bond markets can drift along unconcerned with mounting fundamental problems, only to experience a rapid repricing at times that cannot be predicted. As a reminder, this analysis applies to states and not to city, county and other in-state issuers.

Average: Your rating: None Average: 4.9 (15 votes) »

Comment viewing options Select your preferred way to display the comments and click "Save settings" to activate your changes. Sun, 01/03/2016 - 19:32 | 6992610 MFL8240
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-1

Thought we were in a recovery?

Sun, 01/03/2016 - 19:41 | 6992653 Money Boo Boo
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we need to print moar cowbells

Sun, 01/03/2016 - 19:52 | 6992716 Scooby Dooby Doo
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-5

Ah well, I hope the people of PR are safe. If not I hope that we all open our homes to them here in the Homeland and allow them to live freely and safely.

Sun, 01/03/2016 - 19:54 | 6992725 CheapBastard
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New York's homeless population at all-time high of 60,000

http://www.bbc.com/news/world-us-canada-31791019

I think it's the Robustest Recovery on record also.

Sun, 01/03/2016 - 20:10 | 6992798 Tasty Sandwich
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-29

60,000 / 8.4 million seems pretty insignificant really.

Sun, 01/03/2016 - 20:35 | 6992906 I Will Explain All
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watch that number fly when the welfare state goes bankrupt.