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 - 16:07 | 7006528 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

I know everyone of us here knows the Fed failure was contrived because they are now ready to bankrupt us all. They of course will profit on the collapse big time once again.

 

The question is have enough awoken to see it yet? Is anyone going to do anything about it?  The fact that they raised rates at the worst of times shows, they purposely want the collapse to commence and they have all the laws, assets, and personnel in place to deal with the repercussions. 

Wed, 01/06/2016 - 16:20 | 7006573 FreeShitter
FreeShitter's picture

They will aways profit because they own the motherfuckin house. I just feel bad for all the old seniors who believe their scandolous financial pimps.

Wed, 01/06/2016 - 17:25 | 7007036 JRobby
JRobby's picture

And there are a lot of them

They like & trust the GOVT

They like & trust all the doctors and big pharma

Wed, 01/06/2016 - 17:43 | 7007131 Countrybunkererd
Countrybunkererd's picture

It isn't really all their fault initially.  They were programmed to think that way (look at I Love Lucy for ex.  rosie the riveter to Lucy in a decade?? WTF?!!) but those (like my parents) who refuse to see this shitstorm for what it is and keep in this casino should be burned (including my parents).

Wed, 01/06/2016 - 17:39 | 7007112 Soul Glow
Soul Glow's picture

+400 tomorrow?

lolz

Wed, 01/06/2016 - 18:06 | 7007269 Karlus
Karlus's picture

Except oil. Our friends at Golden Sacks are short and well, we have an election coming you know...Shalom, goyim!

Wed, 01/06/2016 - 20:28 | 7007929 tarsubil
tarsubil's picture

I predicted +300 today. Phew, good thing I didn't quit my day job to be a day trader. The charts right now look so ugly. I'm even tempted to short it (like I'm actually that crazy!).

Wed, 01/06/2016 - 16:16 | 7006605 sun tzu
sun tzu's picture

The house always wins. The bankers own the casino

Wed, 01/06/2016 - 16:32 | 7006722 Seasmoke
Seasmoke's picture

We had our chance in 2008. And we blew it. I was just awake. And I remember the first thing I figured out is if you let them off the hook, they will just regroup and be stronger than ever. Makes me sick to this day. They got away with it. Perhaps they pay the ultimate price in 2016. 

Wed, 01/06/2016 - 19:38 | 7007663 yellensNIRPles
yellensNIRPles's picture

Fat chance. See how we 'dealt with them' after 2008? Yeah. Rinse and repeat. Sorry, but that's exactly what's going to happen. Nothing. You mark my words they'll be at it again with some new plan that has the sheeple fooled and everyone will be cheering them on as they fix what they broke.

What many people forget is that the average Joe does not understand fractional reserve banking.

The end.

Until people are taught what is going on it is hopeless, because they can never know that it is a system designed to fail from the beginning, mathematically. It simply does not work in the end. There is no such thing as infinite growth, and there is no scenario in which greedy people will settle for a stagnant economy. So what happens? This.

Over and over and over and over and over and over...

Wed, 01/06/2016 - 16:07 | 7006540 skinwalker
skinwalker's picture

The norks tested an H bomb today. I thought stocks were supposed to go up on bad news? Isn't that the rule? 

Wed, 01/06/2016 - 16:16 | 7006604 thesonandheir
thesonandheir's picture

Well the downed Russian jet and the Paris attacks were bullish so this should have been too.

Wed, 01/06/2016 - 17:45 | 7007146 Countrybunkererd
Countrybunkererd's picture

The market mover today was the good news out of China...and Walmart bad news does not exist anymore...Odumba$$ executive ordered it.

Wed, 01/06/2016 - 16:08 | 7006546 Sir SpeaksALot
Sir SpeaksALot's picture

It all looks suspicious to me,
- Russia is trying to block the border of Syria against Turkey
- Saudi Arabia breaks diplomaric relationship with Iran
- migrants in Europe are wreaking havoc by raping european women,
- stock marktes are going straight down from the first day of the year,

and now - North Korea becomes extremely dangerous to Western countries,

Come on - if Shit would start To Hit the Fan - you imagine different start?

Wed, 01/06/2016 - 16:15 | 7006596 Jethro
Jethro's picture

All of these things are minor in comparison to the damage that the Confederate Flag can inflict on progressive "feels".

Wed, 01/06/2016 - 16:53 | 7006859 froze25
froze25's picture

Agreed, illegal immigrant Trannys wearing Confederate Flag bikinis with AR-15's must be protected at all cost.

Wed, 01/06/2016 - 16:16 | 7006600 gdogus erectus
gdogus erectus's picture

I would have to agree with that, Sir Spanks Alot

Wed, 01/06/2016 - 16:22 | 7006642 walküre
walküre's picture

we're in the Shemitah year and anyone who hasn't paid attention since September is now paying the price

FWIW... Merkel opened her yap and started "WelcomeRefugees" on September 4th, 2015

orchestrated and on cue

Wed, 01/06/2016 - 16:54 | 7006869 froze25
froze25's picture

Yes you are correct sir, I had forgotten about the Shemitah. Gods revenge on the children of a little country in the middle east for being greedy.

Wed, 01/06/2016 - 16:56 | 7006878 kiwigal
kiwigal's picture

Shemitah year ended in 2015.

Wed, 01/06/2016 - 17:09 | 7006953 Ms No
Ms No's picture

It's a Jubilee year.  Which allegedly correlates with land grabs by Israel.  I gave up on those theories though because the Shemitah one failed by my measure.  Unless one considers that big up and down fiasco we had in the market a few months ago a stock market crash.  I don't think that would qualify.  Would be nice if things were that easy though.

 

 

Wed, 01/06/2016 - 17:10 | 7006961 J Jason Djfmam
J Jason Djfmam's picture

The fed put the shemitah on hold just like the crash.

Bad Karma.

Wed, 01/06/2016 - 16:08 | 7006550 __Usury__
__Usury__'s picture

dont worry janet, I'll do my part and max out my 17 credit cards this coming weekend....

Wed, 01/06/2016 - 16:09 | 7006556 _ConanTheLibert...
_ConanTheLibertarian_'s picture

WHAT??? No ramp?? I'm shocked.

Wed, 01/06/2016 - 16:10 | 7006565 new game
new game's picture

lower lows to ya all, happy new year!

Wed, 01/06/2016 - 16:10 | 7006569 wmbz
wmbz's picture

Looks like everything is shaping up for the next rate hike....Or NIRP!

This shit show is starting fling a little feces into the fan!

Giddy up!

Wed, 01/06/2016 - 16:10 | 7006570 PoliceThePolice
PoliceThePolice's picture

3:30 represents a magical time of the day when things just seem to go good. Why do I always wait till the night time to ask my wife for some quality time. I know what I'll be asking for around that time from now on. Insert cheesy 70's music in 3,2,1..... PS Fuck Janet Yellen and the FED............

Wed, 01/06/2016 - 16:25 | 7006653 Jethro
Wed, 01/06/2016 - 18:00 | 7007234 itstippy
itstippy's picture

That's some toe-tappin' music.  Makes me want to get down on the floor and spin.

Wed, 01/06/2016 - 18:25 | 7007352 EddieBurgerPie
EddieBurgerPie's picture

Ah no! Me NO like dat a versión. NOOOOO. Me like dis-won. https://www.youtube.com/watch?v=cfxe4yvp-Z8

Thu, 01/07/2016 - 07:46 | 7009972 Jethro
Jethro's picture

Hahahahaha.  I learn something new everyday here.

Wed, 01/06/2016 - 16:54 | 7006870 Montani Semper ...
Montani Semper Liberi's picture

 Afternoon Delight!

Wed, 01/06/2016 - 16:58 | 7006892 Montani Semper ...
Montani Semper Liberi's picture

 Sorry Jethro, didn't know your link was for the Starland Vocal Band until after my post.

Wed, 01/06/2016 - 20:21 | 7007888 Jethro
Jethro's picture

I have good news, and bad news. The good news is that great minds think alike. The bad news is that if this is true, you might require therapy.

Wed, 01/06/2016 - 16:11 | 7006571 FX223
FX223's picture

...and as prophecy, may your BMW burst into flames and your margin be called. Kneel at the alter of bank teller and weep for debt forgiveness. Let repo fall upon you as the whole of your possessions be refinance then defaulted and onto all your things equal to zero... Die moneychangers!

Wed, 01/06/2016 - 16:12 | 7006576 rejected
rejected's picture

BTFD

LOL

 

Wed, 01/06/2016 - 16:24 | 7006649 Dg4884
Dg4884's picture

Which one?! lol

Wed, 01/06/2016 - 17:52 | 7007190 Countrybunkererd
Countrybunkererd's picture

absolutely anything as long as it is BEFORE 3:30 it appears

Wed, 01/06/2016 - 16:12 | 7006579 Free_Spirit
Free_Spirit's picture

i don 't see the problem for China with devaluing - the cost of ore, commodities and oil are very low so there's no risk of inflationary pressures.  Surely this deval will just increase their exports wwith very little downside ?? 

Wed, 01/06/2016 - 16:36 | 7006593 Insurrexion
Insurrexion's picture

 

 

You beat me to the same questions Kaiser Sousa.

So, I'll finish it.

 

If you market manipulating muther fuckers happen to be carbon based, read this:

We will find you. We are coming for you. We will eat you.

Update your fucking life insurance policies for death by cruel and unsual punishment.

We want a better world for your children than you do.

Now go home, and drink heavily.

Then pull out your gun and stick it in your mouth.

Think about the consequence of selling your soul to the Evil One. 

Taste the end ....... then pull the trigger.

 

My boyfriend thinks I'm fucking crazy...

 

Wed, 01/06/2016 - 16:36 | 7006753 Kaiser Sousa
Kaiser Sousa's picture

u aint crazy...ur awake and rightfully fucking pissed.

Wed, 01/06/2016 - 17:04 | 7006923 Jstanley011
Jstanley011's picture

Somehow I don't think TPTB are quaking in their boots, much less suicidal. People talk about the terrorists engaging in asymetrical warfare, an individual fighting against TPTB is the ultimate in asymetrical warfare. It's the United States against YOU. Not good odds.

Thu, 01/07/2016 - 05:46 | 7009679 August
August's picture

I like the dinosaur - mammal analogy:

All we have to do is survive... eat as many of their eggs as possible,

and try not to stand out too much...

This sucker IS going down.

Wed, 01/06/2016 - 17:25 | 7007033 Two Theives and...
Two Theives and a Liar's picture

Crazy??!! I wish I could DATE someone like you. I only seem to find Libtard women here ...and the normalcy bias is 100 miles thick...

Thu, 01/07/2016 - 06:04 | 7009698 agstacks
agstacks's picture

She had me at "Mother Fuckers"...

Wed, 01/06/2016 - 16:16 | 7006598 Squid Viscous
Squid Viscous's picture

Netflix announced they are losing money in 130 countries... bullish!

Wed, 01/06/2016 - 16:26 | 7006662 EdSav
EdSav's picture

I know right? Overseas exposure... Super duper bullash. Apparently the short bus crew are still active in bidding up this absolute shit. 

Wed, 01/06/2016 - 17:05 | 7006934 R19
R19's picture

Profitable countries are right around the corner.

Wed, 01/06/2016 - 18:22 | 7007336 Mentaliusanything
Mentaliusanything's picture

If they  are losing money in 130 countries they must make up for it by opening in the remaining lands. Faukland Islands needs your shit shows bad.

Now if they streamed excellent porn......

Wed, 01/06/2016 - 21:30 | 7008299 GotGalt
GotGalt's picture

I just about barfed when I saw NFLX was up 8% on the news.  Total crap. 

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