Stocks Plunge To 3-Month Lows Amid Crude Carnage, Chinese Currency Collapse

Tyler Durden's picture




 

Ok to summarize - China has lost control of its currency (whether intentionally or not) and that is forcing carry unwinds en masse; North Korea tests a nuke; European inflation disappoints; US services economy collapses (follows manufacturing's lead and another pillar of hope is destroyed); Crude crashes to fresh decade plus lows; The Fed offers nothing in the way of hope for growth (or puts); Bernanke says not to expect Fed to save stocks; World Bank cuts global growth outlook... But apart from that, everything is awesome!!!

 

Before we start, this happened!! Bloodbath in Yuan (offshore Yuan near record lows)...

 

On the day, a wild ride... with the ubiquitous closing ramp

 

Deja Deja Vu all over again...

 

On the week - year-to-date - it appears bad news is bad news - let's just hope China doesn't open tonight eh?

 

Note that evwerything but Nasdaq is red since the end of QE3...

 

Post-FOMC, everything was chaotic... Gold flat, bonds up and stocks rescued...

 

We do note the VIX-manipulation to move stocks around...

 

Stocks are catching down to their breadth-based reality...

 

And it's looking a lot like August again...

 

Energy stocks plunged back to reality... who could have seen that coming?

 

Financials are catchiung down to credit again...

 

FANTAsy stocks were mostly lower but NFLX was ripped higher as CEO Reid Hadtings spewed some more bullshit... #netflixeverywhere - seriously!!

 

AAPL had a mysterious massive buyer as it broke $100...

 

Treaaury yields plunged with 7Y back under 2% and 30Y back under 3%... on the week 2s30s is now 6bps flatter

 

The USD slipped lower after FOMC Minutes but is brioadly flat for 2 days (and up on the week)...as AUD collapses and JPY surges...

 

Crude was clubbed, copper limped lower but PMS rallied further...

 

Carnage...

 

WTI Crude crashes to its lowest level since Dec 08's lows at $32.40...

 

Charts: Bloomberg

Bonus Chart: We have seen this pattern of money flow chaos before... Outflows surge from China, send liquidity needs spiking, which bleeds over into Saudi stress (petrodollar?), causing unwinds in major equity markets (thanks to deleveraging of carry trades) in China and then US stocks...

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Wed, 01/06/2016 - 16:06 | 7006523 Kaiser Sousa
Kaiser Sousa's picture

i typed this up as i watched the last hour of fraudulent fucking trading on the fucking dow mother fuckers... (and i mean to most of ya’ll affectionately)

NOW PLEASE RIDDLE ME THIS…
WHO IN THE FUCK OVER THE LAST 3 DAYS DECIDEd THAT FUCKING WALMART REPRESENTED A GREAT BUYING OPPORTUNITY IN THE LAST HOUR OF TRADING ESPECIALLY TODAY WHEN THE DOW WAS DOWN AT THAT POINT 322 FUCKING POINTS????

WHO IS THE “MYSTERY BUYER” STEPPING IN EVERY FUCKING DAY IN THE LAST HOURS OF TRADING TO JOLT THE DOW OFF SESSIONS LOWS WHEN EVERY OTHER SHIT STOCK IN THE INDEX IS NEGATIVE FOR THE DAY???

HOW IS IT THE DOW WAS DOWN OVER 300 ALL FUCKING DAY AND THEN -LIKE MAGIC- “RETAIL INVESTORS” STOPPED HOLDING THEIR DICKS JUST IN TIME TO RUSH IN AND “BUY!!!!  BUY!!!!! BUY THE COCKSUCKING DIP??????

TOTAL AND COMPLETE BULLSHIT…..

death to the MoneyChangers. and fuck off with that….

Wed, 01/06/2016 - 16:10 | 7006566 DogeCoin
DogeCoin's picture

PPT to the rescue. The government just owns a percentage of Wal-Mart now. Don't hate.

Wed, 01/06/2016 - 16:22 | 7006641 CClarity
CClarity's picture

WalMart is a great buy cuz obviously no one wants to go to Macy's anymore.  + Netflix

 

Wed, 01/06/2016 - 17:20 | 7006997 Soul Glow
Soul Glow's picture

And no one wants to leave their houses cuz netflix abnd amazon.

Too bad no one has jobs to afford netflix and amazon.

Wed, 01/06/2016 - 17:21 | 7007017 FreeShitter
FreeShitter's picture

The world outside of amzn and nflx just fucking sucks, all you need is some cheap beer and pussy to complete your day.

Wed, 01/06/2016 - 17:34 | 7007076 HowdyDoody
HowdyDoody's picture

Meanwhile in the real world, Iran and India start to trade for oil. It won't be priced in USD, but in rupees.

http://russia-insider.com/en/its-happening-iran-india-dump-petrodollar-s...

Tick, tock.

 

Wed, 01/06/2016 - 17:38 | 7007105 Soul Glow
Soul Glow's picture

Note those two Nation-States love gold. 

Wed, 01/06/2016 - 17:54 | 7007199 glenlloyd
glenlloyd's picture

Barfing clown to the rescue!!!

Wed, 01/06/2016 - 18:03 | 7007255 Karlus
Karlus's picture

Barfing Unicorn > Barfing Clown

Wed, 01/06/2016 - 18:53 | 7007450 Say What Again
Say What Again's picture

@Kaiser, Do you trade much?  Do you have access to basic market news?

1: You should note that WMT was ~$90 in Jan 2015, and is now around $63, so someone might think its cheap, based on some valuation measure.  I'm not saying that I view WMT as cheap, but its easy to see that someone might think so.

2: There has been significant activity in the options market

Option Alert: WMT Feb16 67.5 Calls: 1500 @ ASK $0.43: 3322 traded vs 996 OI: Earnings 2/18 Before Open $63.69 Ref (SENTIMENT:WMT:1)

3: There were a number of filings for executives receiving stocks from the company.  Here is just one example;

    Form 4: Update Filing for Wal-Mart Stores Inc (WMT)
    Jan 06, 2016 (Vickers Stock Research via COMTEX) --
    Document Processing Date: January 05, 2016

    Stock Name: Wal-Mart Stores Inc
    Stock CUSIP: 931142103

    Filer: SYSTROM, KEVIN
    Position: Director

    Stock Symbol: WMT
    Exchange:
    Stock Type: Common, Ordinary Stock

    Transaction period:
    Trade amount: 449 shares
    Trade type: Acquisition (Non Open Market)
    Trade price range: $.0000

    Shares still held: 5745 shares

 

Wed, 01/06/2016 - 20:29 | 7007932 zeronetwork
zeronetwork's picture

China made garbage was getting out of American's rang so Yuan devaluation was imminent. Now once again we will be able to buy Chinese crap.

Wed, 01/06/2016 - 17:21 | 7007016 KesselRunin12Parsecs
KesselRunin12Parsecs's picture

WHO IS THE “MYSTERY BUYER” STEPPING IN EVERY FUCKING DAY IN THE LAST HOURS OF TRADING TO JOLT THE DOW OFF SESSIONS LOWS WHEN EVERY OTHER SHIT STOCK IN THE INDEX IS NEGATIVE FOR THE DAY???

 

It's me... Sorry! I admit it (I'm not sorry that I did it, I'm just sorry that you don't like it ~ like, the one day a year that I'm supposed to be sorry for something)

 

http://active-democracy.com/images/the-lovely-jewish-history/federal-res...

Wed, 01/06/2016 - 17:27 | 7007043 Oracle of Kypseli
Oracle of Kypseli's picture

Take your medications before commenting. You will be kicked ouy of ZH again.

Wed, 01/06/2016 - 17:30 | 7007056 Squid Viscous
Squid Viscous's picture

kicked "oy" of ZH, Freudian slip?

Wed, 01/06/2016 - 17:35 | 7007085 HowdyDoody
HowdyDoody's picture

It was vey perceptive of you to notice his typo.

Wed, 01/06/2016 - 17:57 | 7007217 KesselRunin12Parsecs
KesselRunin12Parsecs's picture

@Oracle

 

& so how, in detail, is the link that I proffered, incorrect (you know, b4 we get into talking about who should be taking 'medications' & all that shit)?

 

http://active-democracy.com/images/the-lovely-jewish-history/federal-res...

Wed, 01/06/2016 - 18:35 | 7007382 KesselRunin12Parsecs
KesselRunin12Parsecs's picture

tick, tick, tick...

 

Well, I didn't think so (seems like the 'cat' of Kypseli has a hold of your tongue)

Wed, 01/06/2016 - 17:49 | 7007175 Bluntly Put
Bluntly Put's picture

Seems to me if the fed is buying Netflix, it should be worth less considering their track record.

Wed, 01/06/2016 - 20:02 | 7007789 FreedomGuy
FreedomGuy's picture

I am not an active trader but I do follow the markets. It is uncanny how many late day "saves" there are that ramp up at the end of the day.

There are either timed algorythyms out there or an active coordinated counterforce.

I would try to trade the intervention.

Wed, 01/06/2016 - 16:27 | 7006673 galant
galant's picture

" The government just owns a percentage of Wal-Mart now."

And that is what taxes are for?

Wed, 01/06/2016 - 17:04 | 7006928 bfellow
bfellow's picture

Don't worry. No tax dollars used here. This is the Ctrl+P variaty of fun coupons being spent here. 

Wed, 01/06/2016 - 17:12 | 7006969 Soul Glow
Soul Glow's picture

RIght.  Just add pixie dust!

Wed, 01/06/2016 - 17:20 | 7007012 JRobby
JRobby's picture

Ugliness prevails

Everyone (almost) can see it now. Look out below!

Wed, 01/06/2016 - 16:38 | 7006763 Jethro
Jethro's picture

Janet Yellen may as well start doing the fucking commercials. Walmart could just put a gray bowl cut wig on their happy face, and nobody could tell the difference.

Wed, 01/06/2016 - 17:11 | 7006962 herkomilchen
herkomilchen's picture

She could be the greeter.  Job that she would have in a free economy.

Wed, 01/06/2016 - 17:39 | 7007111 nc551
nc551's picture

They got rid of the greeters, too expensive.

Wed, 01/06/2016 - 18:19 | 7007323 TruthHunter
TruthHunter's picture

The greeters were always there for security, checking you out while smiling around "welcome to Walmart"

Now they mostly just glare. Wally World has forgotten some things Sam knew for sure.

Eventually they'll all be Flea Markets or homeless shelters.

Thu, 01/07/2016 - 16:05 | 7013238 Abbie Normal
Abbie Normal's picture

How true, the greeters have now moved to the exit doors and are checking receipts, ala Costco.  They no longer care if you come in, just that you don't walk out without paying.

Wed, 01/06/2016 - 17:51 | 7007184 TheAntiProgressive
TheAntiProgressive's picture

Yeah but Janet is gonna go full blown comanche and shock the hell out of everyone.

Wed, 01/06/2016 - 16:16 | 7006607 Xatos
Xatos's picture

Because quite obviously the new way to make money is buy at :30 before the close, and sell in the morning. Rinse, repeat.

Wed, 01/06/2016 - 16:19 | 7006623 Rainman
Rainman's picture

... and for Gawd's sake be sure you don't oversleep.

Wed, 01/06/2016 - 16:23 | 7006644 edifice
edifice's picture

That's why God invented trailing stops. :)

Wed, 01/06/2016 - 17:20 | 7007014 Soul Glow
Soul Glow's picture

Or just sell at 3:58.

Wed, 01/06/2016 - 16:18 | 7006622 Takeaction2
Takeaction2's picture

I have watched myself...Like clock work.  Too bad I don't have the balls or the knowledge on how to just leverage the fucking thing 1000 fold at 3:30 pm.  You could make a killing.

Wed, 01/06/2016 - 16:48 | 7006812 khakuda
khakuda's picture

The only funds seeing inflows are probably index funds and they are big flows relative to numerous other strategies.  Since they have to track the index, it wouldn't surprise me if they were trying to buy at prices approximating market closing prices, though I don't know this for sure.  If so, it could be that they represent the dailiy race to close???  It is pretty clear a switch gets thrown to keep buying into the momentum of the close.

Wed, 01/06/2016 - 16:59 | 7006898 Ms No
Ms No's picture

In the chart I just saw it looked like it started going down somewhere between 3:00- 3:20 today.

Wed, 01/06/2016 - 16:22 | 7006640 SILVERGEDDON
SILVERGEDDON's picture

KS - GOT THE CAPS DEAD ON, BUT NOT ENOUGH FUCK.

More colorful, long winded descriptive phrasing helps as well.

It also has a calming effect on your own personal space.
For example :

" Those Snot slinging fall down drunk rainbow skittle shitting unicorn child molesting rama lama ding dong Klingon cocksuckers from Uranus hard at work ramming financial cock up the muppets so hard they all look like fucking finger puppets ! May they all die in a fire caused by ramming barbed wire covered baseball bats covered in flaming napalm up their asses while they are being frog marched into the business end of an airport snow blower running at top speed. "

I hope this helps you with your next colorful description of Wall Street Piracy.

Wed, 01/06/2016 - 16:30 | 7006694 Kaiser Sousa
Kaiser Sousa's picture

i will try harder tomorrow.

thanks....

ps: how u liking the capping of the phony paper price of Silver at $14...and Gold below $1,100.

theyre so fucking stupid....

cheers...im headed our for beers and many shots.

Wed, 01/06/2016 - 17:08 | 7006952 bfellow
bfellow's picture

I love that they are artificially keeping silver low. Time to stack it high. Cause then the paper silver burns, the physical holders will prosper.

Wed, 01/06/2016 - 17:39 | 7007099 Countrybunkererd
Countrybunkererd's picture

Anyone under 30 that requires some form of visual stimulation in order to comprehend these mere words should look at Chevy Chase in Christmas Vacation after he gets his bonus in the mail.  Good for old timers as a reminder as well.

Wed, 01/06/2016 - 17:39 | 7007113 SILVERGEDDON
SILVERGEDDON's picture

KS - metals price the same as paper spot value.

Makes me wanna stack the canoe up so high with physical that I capsize mid Lake Woebegone all over again. For the 47th time to date.

Fucking cold water in January. Bought a wetsuit for the long swim to shore.

Wed, 01/06/2016 - 17:23 | 7007028 JRobby
JRobby's picture

What he said

Wed, 01/06/2016 - 16:56 | 7006880 khnum
khnum's picture

Walmart 1.4 million US employees

sells Chinese shit

China about to go fubar

This will not end well

 

Wed, 01/06/2016 - 17:57 | 7007216 stant
stant's picture

They will go back to where they started. Two guys with a box cutter. Just set it on the floor. And with less than half the floor space. They will lease the rest out to the Amish with a peddlers mall

Wed, 01/06/2016 - 17:02 | 7006916 inhibi
inhibi's picture

Shit sorry I clicked the buy button instead of the sell button...my mistake guys my mistake. Wont happen again.

-theinhibitor

Wed, 01/06/2016 - 17:19 | 7007001 Two Theives and...
Two Theives and a Liar's picture

Love ya KS! Keep on telling it like it is! Need to make the REAL clowns puke!

Wed, 01/06/2016 - 17:45 | 7007143 radwon
radwon's picture

Apple now owns a bigger % of AAPL.

Wed, 01/06/2016 - 18:57 | 7007487 pebblewriter
pebblewriter's picture

The usual VIX hammering, CL and USDJPY-fueled algo crap for sure.

But, in this case, the charts actually supported a rebound.  Draw a trend line from SPX's Oct 21 lows through the Dec 14 lows and you'll see it intersects today at about 1983.50.  Those two previous times, SPX rebounded by 100 and 83 points respectively.  So, folks who watch charts were looking for a similar bounce off the trend line today. 

SPX dipped below it for 30 minutes or so.  When it popped back above it, it attracted a lot of dip buyers.

https://twitter.com/pebblewriter/status/684886274948206592

Wed, 01/06/2016 - 20:26 | 7007912 zeronetwork
zeronetwork's picture

At the end of the day money changer win, you and me are the bag holder.

Wed, 01/06/2016 - 16:09 | 7006527 ElwinCthulhu
ElwinCthulhu's picture

Cue puking clowns

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