Bloodbath

Tyler Durden's picture




 

You know it's bad when...

But, but, but... Fed... FANGs... Decoupled... Services... Netflix... Unicorns... Cramer...

 

The day started badly (as China devaluation stress crushed carry trades and sucked liquidity out of the world, slamming USDJPY, US stocks, bond yields, credit, crude, and copper lower)...no late-day rally today!

 

*CANADA STOCKS ENTER BEAR MARKET AFTER 20% DROP FROM SEPT. 2014

 

All that hope as China lifted its circuit-breaker rule and crude briefly rallied... but stocks carnaged back to overnight lows late in the day... Another bounce into the European close then SELL MORTIMER SELL into NYMEX close

 

Since the start of December, it's ugly...

 

The NASDAQ is rapidly losing its post-QE3-End gains...

 

"Policy Error" Much?

 

"No Brainer" is down 28% from its highs...*APPLE CLOSES AT $96.45; FIRST CLOSE BELOW $100 SINCE OCT. 2014

 

FANTAsy stocks tumbled deep into the red for the year (yes even NFLX!!) Facebook, Amazon, Netflix, Tesla, and Alphabet... all red...

 

Financials caught down to credit...But just keep talking up NIM and their "no brainer"-ness

 

VIX pushed above 25...

 

VIX term structure inverted...

 

Credit suggests more to come..

 

Stocks are "getting there"...

 

Catching down to breadth...

 

Away from the excitement of stocks...

Treasury yields tumbled further (some selling pressure as CNH defense suggested China selling)...

 

The USD Index tumbled back into the red for the week as JPY strength continued...

 

USDJPY closes at 11 month lows...

 

Commodities split between growth and safety as PMs rallied and crude, copper crumbled...

 

as Gold and Silver Surged...

 

Charts: Bloomberg

Bonus Chart: What did you think would happen?

4.90909
Your rating: None Average: 4.9 (33 votes)
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 01/07/2016 - 16:42 | 7013504 Yen Cross
Yen Cross's picture

 Maybe the assclown on CNBS would like to discuss how Chinese markets are vested VIA 3'rd parties? [pooled money]

 loan sharks...ect

Thu, 01/07/2016 - 16:42 | 7013507 Dre4dwolf
Dre4dwolf's picture

Eeeh old system is on its death bed, crypto free market finance is entering stage right as old world monetary system exiting stage left.

Thu, 01/07/2016 - 16:46 | 7013529 J Jason Djfmam
J Jason Djfmam's picture

Great until we learn Satoshi is George Soros.

Thu, 01/07/2016 - 17:49 | 7013906 conraddobler
conraddobler's picture

I'd go with Lucifer aka the dark lord errr maybe the Red Dragon?

In short I am thinking Soros is like a mid level minion type.

Thu, 01/07/2016 - 23:10 | 7015379 techpriest
techpriest's picture

He's the secretary of the deception department. Screwtape works for him:

http://www.amazon.com/The-Screwtape-Letters-C-Lewis/dp/0060652934

Thu, 01/07/2016 - 16:47 | 7013536 R19
R19's picture

Do you posters that say 'Death to the money changers!!!' just follow the markets as a hobby or do you not consider trading and investing money changing?

Thu, 01/07/2016 - 17:20 | 7013737 ToSoft4Truth
ToSoft4Truth's picture

 

Trump will become the first Trillionaire. 

 

Thu, 01/07/2016 - 17:47 | 7013897 conraddobler
conraddobler's picture

Ooops hahaha.

Thu, 01/07/2016 - 16:48 | 7013540 walküre
walküre's picture

Gold miners are having a great week!

Thu, 01/07/2016 - 16:49 | 7013547 ToSoft4Truth
ToSoft4Truth's picture

 

Better get you a paid off house.... or you'll have to fight in my basement or provide 'favors' to the other guests.

 

 

Thu, 01/07/2016 - 16:51 | 7013565 zeroaccountability
zeroaccountability's picture

The BTFD'ers are in the HURT LOCKER now, for sure.

Thu, 01/07/2016 - 17:24 | 7013767 ToSoft4Truth
ToSoft4Truth's picture

 

The wives are going to be bitching all weekend.

 

The husbands reviewing holiday credit statements.

 

Thu, 01/07/2016 - 16:53 | 7013582 E.F. Mutton
E.F. Mutton's picture

If you're walking along Wall Street tomorrow be sure and stay away from windows and under something solid.  Projectile Banker Launchings are imminent.

Thu, 01/07/2016 - 16:58 | 7013612 Skiprrrdog
Skiprrrdog's picture

JUMP YOU FUCKERS, JUMP...

Thu, 01/07/2016 - 17:04 | 7013647 LawsofPhysics
LawsofPhysics's picture

Good to see another optimist.

Thu, 01/07/2016 - 17:19 | 7013733 Jethro
Jethro's picture

Perhaps I should go sell nailguns on on a street corner at Wall St?

Thu, 01/07/2016 - 20:46 | 7014764 Buster Cherry
Buster Cherry's picture

Sell those "innoculations" to them for $1000 a pop.

Thu, 01/07/2016 - 16:57 | 7013603 moonmac
moonmac's picture

The pie-in-the-sky gravy train of sunshine and lollypops has been temporarily suspended.

Thu, 01/07/2016 - 16:57 | 7013606 silverer
silverer's picture

They'd better not report any of this on mainstream media.  Maybe they can find some exciting weather phenomenon to put on instead.  That way, the sheeple will stay happy and the Ponzi can collapse more slowly.

Thu, 01/07/2016 - 16:57 | 7013607 yellensNIRPles
yellensNIRPles's picture

Am I the only one who's noticed that the minute the shit hit the fan with the economy, every single article about the Bundy standoff in Oregon just dissapeared?

That's convenient.

Thu, 01/07/2016 - 23:13 | 7015394 techpriest
techpriest's picture

Coverage is a function of newsworthiness. Just like football.

Also, it looks like there might be a peaceful resolution after all, at least until a few people disappear a week later.

Thu, 01/07/2016 - 17:04 | 7013644 Skiprrrdog
Skiprrrdog's picture

I'm loving it, burn baby burn...

Thu, 01/07/2016 - 18:10 | 7014030 Brooks_Orpington
Brooks_Orpington's picture

I don't mean to pick an argument, but the S&P 500 is still 292% higher than the financial crisis lows.  It really isn't burning yet.  So far, it's just the run-of-the-mill consolidation that everyone was used to before money was free.

I'll stipulate the media likes to make it seem more "crisis-like" to gather eyeballs, but I'm not convinced this is the beginning of the necessary washout.

Thu, 01/07/2016 - 17:07 | 7013664 Who was that ma...
Who was that masked man's picture

Buy the dip, dipshit.

Thu, 01/07/2016 - 17:07 | 7013665 TheDanimal
TheDanimal's picture

I did some googling to learn about volatility term structure and found a good one:

"More simply, by taking risks on VIX term structure, one can expect to achieve higher returns than when one is not taking these risks."

http://www.futuresmag.com/2015/04/15/understanding-volatility-term-struc...

Does that really encourage irresponsible risk-taking or am I just too stoned?

Thu, 01/07/2016 - 17:21 | 7013751 Iam_Silverman
Iam_Silverman's picture

"Does that really encourage irresponsible risk-taking or am I just too stoned?"

Well, you can't win the lottery without buying a ticket!

Thu, 01/07/2016 - 17:07 | 7013666 EndOfDayExit
EndOfDayExit's picture

After 8 years of intervention I can't help but think that any market turmoil is no longer just happening... rather it is allowed to happen. And likely for a well-thought through reason. And it will be allowed to happen for a while until... it won't be allowed to happen any longer and will get stabilized and moved to where they want it to be...

This is surreal. I have no fear (being 100% in cash at every close does help though).

Thu, 01/07/2016 - 17:08 | 7013671 Jack Burton
Jack Burton's picture

Negative interest rates are a lock.

Thu, 01/07/2016 - 17:16 | 7013723 LawsofPhysics
LawsofPhysics's picture

Not in FRNs...

SDRs, maybe.

Still need to survive that transition however.

Thu, 01/07/2016 - 17:17 | 7013674 Jstanley011
Jstanley011's picture

Market metaphors, such as "bull" and "bear," are not precise terms. But here's how I think of the ones related to carnage:

"Under the revised rules approved by the SEC in 2012, market-wide circuit breakers kick in when the S&P 500 Index drops 7 percent (Level 1) [a bloodletting], 13 percent (Level 2) [a bloodbath], and 20 percent (Level 3) [wholesale slaughter] from the prior day's close."

By those standards, we haven't even had a good bloodletting yet.

Thu, 01/07/2016 - 17:10 | 7013685 USSLiberty
USSLiberty's picture

Monday, I closed my SPY puts too early. I'm used to the BTFD stealing my earnings, so I sold with just a tidy 30% profit, expecting a PPT meltup. Oh well, I'll wait to STFP (sell the fucking peak) later on, maybe.

Today, silver dissapointed me; I just knew it would ramp to at least $16. I still made money, but not serious money like I had hoped.

Tonight, CNBC is dusting off the 7PM special "Markets in Turmoil" series. I'll have my popcorn ready. I can't wait to hear what the "experts" have to say about all this bullshit. I'm sure I'll crack a rib!

Thu, 01/07/2016 - 17:24 | 7013712 Jstanley011
Jstanley011's picture

They've spent over a year loading the boat with shorts, and will be talking their book I imagine. Thanks for the heads-up btw, ought to be interesting. Good trading to you.

Thu, 01/07/2016 - 17:31 | 7013800 optimator
optimator's picture

I had to watch Kraemer pre-open this morning, funny as all heck.  Oh, and I don't put the sound on.

Thu, 01/07/2016 - 17:33 | 7013811 Jstanley011
Jstanley011's picture

lmao!

Thu, 01/07/2016 - 17:43 | 7013844 Farmer Joe in B...
Farmer Joe in Brooklyn's picture

SPY puts massively overpriced.

Been slowly loading the boat on 10-15% out-of-the-money XLF puts to 2016/17 for the last year. Cost a fracton and same bang for the buck. Also, when things get squirrelly and counterparty risk starts bubbling up, the financials will get hardest and first (seeing it now).

Have eaten a 50% loss on premium bleed at the low this past year, but back to even today. Best part.....seems geared about 10-to-1 right now and convexity is ramping it up.

Has my patience finally paid off or will the parasites at the Eccles use my tax dollars to ram it back up my ass with QE4...?

Fri, 01/08/2016 - 00:40 | 7015632 mkkby
mkkby's picture

If it IS a new bear market, there will be wicked rallies that kill a lot of shorts and make people believe it's all over.  You can reload on better prices then.  Sell into panics.  Rinse, repeat.

For now china is trading up 2%.  Might be that rally starts friday or monday.  I imagine a lot of traders will want to be flat over this weekend.

Thu, 01/07/2016 - 17:23 | 7013760 yogibear
yogibear's picture

Tell me when the market goes down 30%. That's a crash.

Thu, 01/07/2016 - 17:23 | 7013761 Berspankme
Berspankme's picture

I love how everything is blamed on China. Yeah right. $19T in debt, deficits for as long as you can possibly see. Look at the transports, a good leading indicator. These fuckers tried to prop this up til Obie left office but it ain't gonna hold

Thu, 01/07/2016 - 17:32 | 7013806 Jstanley011
Jstanley011's picture

In case you missed it: Fisher: The Fed is at Fault

He understates the case of course. In addition, the Fed has wiped out savers (and with them the capital base of the country), blown the biggest bond bubble in the history of planet earth, and made pricing for risk impossible. Not to mention that the Fed has conjured the perfect storm, where a 25 basis point increase in interests rates, with the prospect of three or four more, will crash the equities markets but won't save the dollar.

"Hold onto your butts." -Ray Arnold, Jurassic Park

Thu, 01/07/2016 - 17:33 | 7013810 Kefeer
Kefeer's picture

Looks like the same pre-earning reports set-up to me; we will find out within the next 6 trading days.  I believe we have one more leg up with lower highs before the plug is pulled...we are running very low on time..save God.

Thu, 01/07/2016 - 17:37 | 7013838 Chuckster
Chuckster's picture

I don't know who makes up the picture collages but I love them.

Thu, 01/07/2016 - 17:40 | 7013841 22winmag
22winmag's picture

The FED... snatching defeat from the jaws of victory.

 

I hope you have your stacks in order.

Thu, 01/07/2016 - 17:39 | 7013849 Wahooo
Wahooo's picture

Time to back up

Thu, 01/07/2016 - 17:40 | 7013851 Kefeer
Kefeer's picture

Scott 1000 is going to feel like Charmin; not a good scenario for the pampered.

Thu, 01/07/2016 - 17:43 | 7013867 franzpick
franzpick's picture

Bernanki avoided explaining that following the fed-inspired, 5 year equity bubble wealth-effect comes the 5 year poverty effect. These monthlies reveal the breadth and depth of the upcoming bloodbath, not always evident on Boobberg hourly-daily terminal analysis:

http://finviz.com/futures_charts.ashx?t=INDICES&p=m1

Thu, 01/07/2016 - 17:44 | 7013869 SgtShaftoe
SgtShaftoe's picture

It's sure looking a lot like 2008 right now.  Buckle up, it might get a whole lot more bumpy from here.

Thu, 01/07/2016 - 17:50 | 7013919 stumbLebum
stumbLebum's picture

America is the shining city on the hill!

Every other economy pales next to America's, Zero Hedge naysayers.

Thu, 01/07/2016 - 17:52 | 7013933 brushhog
brushhog's picture

Shining because its up in flames

Thu, 01/07/2016 - 17:51 | 7013927 brushhog
brushhog's picture

Market is still overpriced. Its got another 25% to go before it comes in line with fundamentals

Thu, 01/07/2016 - 17:55 | 7013949 CAPT DRAKE
CAPT DRAKE's picture

Agree.

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