Dow Dumps 1200 Points From Holiday Highs, Nasdaq In Correction As Steeper Yuan Collapse Lies Ahead

Tyler Durden's picture




 

Remember 'The Santa Claus Rally' that Bob Pisani said "we should expect" - well The Dow is now down over 1200 points from the highs just before the end of the year and extending those losses as Reuters reports, PBOC advisors are said to call for steeper yuan depreciation, pressuring the government to depreciate by 10-15%.

Dow collapse...

 

As all major US equity indices are in free-fall since the start of December...

 

As reuters reports, China's move to devalue its currency reflects a growing clamor within government circles for a weaker yuan to help struggling exporters, ensuring the central bank remains under pressure to drag it down further in the months ahead, sources said.

 

The yuan has fallen almost 4 percent in two days since the central bank announced the devaluation on Tuesday, but sources involved in the policy-making process said powerful voices inside the government were pushing for it to go still lower.

 

Their comments, which offer a rare insight into the argument going on behind the scenes in Beijing, suggest there is pressure for an overall devaluation of almost 10 percent.

 

"There have been internal calls for the exchange rate to be more flexible, or depreciated appropriately, to help stabilize external demand and growth," said a senior economist at a government think-tank that advises policy-makers in Beijing.

 

"I think yuan deprecation within 10 percent will be manageable. There should be enough depreciation, otherwise it won't be able to stimulate exports."

 

The Commerce Ministry, which on Wednesday publicly welcomed the devaluation as an export stimulus, had led the push for Beijing to abandon its previous strong-yuan policy.

Offshore Yuan is tumbling on the news despite overnight Yuantervention...

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Thu, 01/07/2016 - 13:40 | 7012299 two hoots
two hoots's picture

 

Stuff has been triggered.

 

Thu, 01/07/2016 - 13:43 | 7012309 Soul Glow
Soul Glow's picture

This is what happens when you try to print your way out of a structure fire bitchez.

Thu, 01/07/2016 - 13:46 | 7012339 Ralph Spoilsport
Ralph Spoilsport's picture

She's a rollin' over. 

Thu, 01/07/2016 - 13:47 | 7012344 Hitlery_4_Dictator
Thu, 01/07/2016 - 13:50 | 7012369 Soul Glow
Soul Glow's picture

+400 Friday?

Thu, 01/07/2016 - 13:58 | 7012422 mtndds
mtndds's picture

Just like the last several days, wait for that 3:30 pm ramp up.  PPT will do its thang.

Thu, 01/07/2016 - 14:03 | 7012453 Pool Shark
Pool Shark's picture

 

 

Silly Market...

It thought it was going to get a Santa Claus rally, when instead it got a Grinch Gangbanging...

 

Thu, 01/07/2016 - 14:06 | 7012473 Tom Servo
Tom Servo's picture

Wow, I was wrong, or this is going to be an  EPIC 3:30 ramp!

 

Thu, 01/07/2016 - 14:17 | 7012559 two hoots
two hoots's picture

When the shoeshine boy is selling.........?

Thu, 01/07/2016 - 15:49 | 7013159 asteroids
asteroids's picture

The Chinese don't believe in Santa.

Thu, 01/07/2016 - 14:07 | 7012481 Soul Glow
Soul Glow's picture

The PPT will throw billions of fiat doelarrs into the fire to soften the blow.  What gentlemen.

Thu, 01/07/2016 - 14:19 | 7012577 redux2redux
redux2redux's picture

Putting out fires with gasoline

Thu, 01/07/2016 - 15:34 | 7013095 AdolfSchicklgruber
AdolfSchicklgruber's picture

Look at that ramp go! I HOPE EVERYONE IS CASHING IN ON THAT FREAKING CLOCKWORK

Thu, 01/07/2016 - 13:42 | 7012314 silverer
silverer's picture

So far this has been a third-hill roller coaster.  Waiting for the real rush.  It's a-commin'.

Thu, 01/07/2016 - 13:49 | 7012359 Soul Glow
Soul Glow's picture

Ok but think about the cost.  We may still be at 16k on the DJ but the central banks printed hundreds of trillions of dollars to do so while the governments of the world indebted themselves at the same rate.

So the currencies inflated - and are still inflating - yet stock markets, the assets that hold wealth and value in the fiat system, drop like flies.

One metric is not enough to value what is happening.  We must describe the situation using all metrics.  Once we do we see the shitstorm for what it is - epic.

Thu, 01/07/2016 - 14:07 | 7012485 mtndds
mtndds's picture

Epic is a great word for it.

Thu, 01/07/2016 - 20:25 | 7014649 Dethrone The Ba...
Dethrone The Banksters's picture

yup exactly; all metrics

Thu, 01/07/2016 - 13:42 | 7012319 KnuckleDragger-X
KnuckleDragger-X's picture

Pesky reality, it should be outlawed for the safety and general good of the proletariat........

Thu, 01/07/2016 - 13:47 | 7012325 skm
skm's picture

bob reminds me of aha song ----- piss - on - me

Thu, 01/07/2016 - 13:44 | 7012328 screw face
screw face's picture

......i love ZH chart porn

...moar popcorn please

...bitchez

Thu, 01/07/2016 - 13:56 | 7012403 mayhem_korner
mayhem_korner's picture

 

 

I smell venison.  Can we get Mr. Banzai to cook up a Cramer-headed deer in the headlights?

Thu, 01/07/2016 - 13:45 | 7012335 Mark Mywords
Mark Mywords's picture

We sold out some folks.

STFR!

Thu, 01/07/2016 - 13:45 | 7012336 offwirenews
offwirenews's picture

bout f***** time. I was losing my hard-on during the first half of the day.

Thu, 01/07/2016 - 13:46 | 7012340 RadioFlyer
RadioFlyer's picture

https://www.youtube.com/watch?v=Wp_K8prLfso

 

"I have come here to chew bubblegum and kick ass...and I'm all out of bubblegum."

-Ad libbed by Roddy "The Rod" Piper (played Nada) in "They Live"

Thu, 01/07/2016 - 14:24 | 7012602 skinwalker
skinwalker's picture

Isn't that from Duke Nukem? 

Thu, 01/07/2016 - 20:26 | 7014653 Dethrone The Ba...
Dethrone The Banksters's picture

both lol (Rowdy 1st)

Thu, 01/07/2016 - 13:46 | 7012342 Max Steel
Max Steel's picture

 Chinese deval and plunging Chinese equity market spooked market big time. Funny thing is that falling RMB is actually good for Chinese growth,the only growth engine in earth.. Also, we are perhaps reaching the limits of monetary policy, it lends - it does not give.

Thu, 01/07/2016 - 13:48 | 7012355 franzpick
franzpick's picture

The monthlies show how much farther equities have to fall from fed-promoted bubble highs:   

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

Thu, 01/07/2016 - 13:55 | 7012361 Keltner Channel Surf
Keltner Channel Surf's picture

Key weekly moving avg (200) just hit on IWM, not seen since the Fall of 2011, expect machines to try and bounce rather sharply here for awhile, if not 103.50 could be the next algo train stop (yikes!), 'twould be quite stunning if they could manage it by week's end, but of course the pre-JOBS algos will be in the mix as well ...

Thu, 01/07/2016 - 13:58 | 7012419 herkomilchen
herkomilchen's picture

Curious why you trade Russell 2000 rather than S&P 500 or something else.

Thu, 01/07/2016 - 14:07 | 7012488 Keltner Channel Surf
Keltner Channel Surf's picture

It has all the advantages of a major index (its own volatility index, tons of ETFs including leveraged, high volume trading vehicles with good liqiudity and tight spreads), with greater intraday volatility (which makes trading it potentially both trickier and more rewarding), but seems to lack the annoying level of machine control that often affects SPY and QQQ, VWAP-hugging, etc.   Don't get me wrong, it's definitely managed by machines, but ones with a bit more verve and panache, with a goal of producing tradable moves, rather than having tons of hedged constipation big pension funds lend to its bigger index brethren. 

Simply the finest index in the land, but takes much longer to learn its quirks, not for the faint-hearted.  (For example, though it can lag a bit on days like this, on other big down days it's common for it to retrace a 1.5% down open alll the way to Unch then end at the lows).  However, big DOW moves based on dollar fears can make for frustrating IWM days, as pensions move funds from large caps (not today).

Sports fans can think of RUT as the Kyrie Irving of indices -- just a marvel to watch.

Thu, 01/07/2016 - 14:15 | 7012543 herkomilchen
herkomilchen's picture

Sounds intriguing.  Many thanks.

 

Thu, 01/07/2016 - 13:50 | 7012367 Spungo
Spungo's picture

Buy the falling knife!

Thu, 01/07/2016 - 13:51 | 7012373 Chupacabra-322
Chupacabra-322's picture

It's 3:30. Do you know where your Ponzi is?

Thu, 01/07/2016 - 13:51 | 7012378 R.R.Raskolnikov
R.R.Raskolnikov's picture

It is kind of awkward to watch everything implode and knowing that in the not so distant future hell will break loose. Me, I profit from it because I am sceptic and almost paranoid. However, I know that in my environment a lot of people are convinced that the economy is doing well because they believe in the things what politicians say. I am kind of afraid what the future will bring...

 

Thu, 01/07/2016 - 13:58 | 7012381 Yen Cross
Yen Cross's picture

 Gawd, I'm listening to that NeoCon Larry KuDBlow on the Blowhorn. He's so out of touch with reality!

 Larry, at least do your homework before you disseminate your feel good BS.

 You actually believe after the abysmal q-4 sales numbers that that .5% jump in the Atlanta fed number from last week is accurate?

Thu, 01/07/2016 - 14:06 | 7012476 Consuelo
Consuelo's picture

And to think this was the OMB under Reagan...

Thu, 01/07/2016 - 13:53 | 7012386 Consuelo
Consuelo's picture

QE4 futures...?

 

Gold...?

 

Hat Trick...?

Thu, 01/07/2016 - 13:53 | 7012388 johmack2
johmack2's picture

hrmm we are now at a point where the dow could go higher then crash to below 6000 or just simply crash to below 6000....based on the charts i am reading

 

Thu, 01/07/2016 - 13:54 | 7012392 Kaiser Sousa
Kaiser Sousa's picture

nothing like a full blown curreny war to show mother fuckers a simple fact thats existed for 5,000 fucking years....

"THERE R ONLY 2 FORMS OF REAL MONEY....PHYSICAL GOLD AND SILVER...."

http://www.livecharts.co.uk/MarketCharts/silver.php

they can whack at Silver all they want but its going to continue to be bought....

DEATH TO THE MONEYCHANGERS.

Thu, 01/07/2016 - 13:55 | 7012395 yellensNIRPles
yellensNIRPles's picture

It's interesting to me to watch this. I woke up about finance in late 2008 as the shit was hitting the fan, but it took me too long to educate myself to really take advantage of the February / April 2009 lows and ramp up. At this point I'm not convinced this is 'the big one', but I'm definitely excited, and this time it's for all the right reasons. 

Thu, 01/07/2016 - 13:59 | 7012426 johmack2
johmack2's picture

At this point I'm not convinced this is 'the big one', but I'm definitely excited, and this time it's for all the right reasons.  I definately feel the same way...someday soon all hell is going to break loose....on that that day you will have those freaking out and those with big smiles on their faces

Thu, 01/07/2016 - 14:03 | 7012451 FreeShitter
FreeShitter's picture

This aint the big one....there will be a false flag that precedes war (imo) before "the big one". Today is just a ripple.

Thu, 01/07/2016 - 14:10 | 7012502 Consuelo
Consuelo's picture

Wise man are you.

 

The 'Big One' is when the Fed is forced to monetize (not that they don't already have some sneaky Exchange Stabilization $Fund stuff going on now), but when it becomes obvious that there is no choice but for the $USD to meet the clippers writ large.

Thu, 01/07/2016 - 13:57 | 7012416 Ms No
Ms No's picture

They're probably going to let it correct and then pull a QE4 or NIRP, the crash will come after that.  Unless China can and chooses to pull the rug out.

Then again CNBC is saying no bear market this year.  What is Gartman saying?

Thu, 01/07/2016 - 14:10 | 7012432 OregonGrown
OregonGrown's picture

BOOM BITCHES

 

That top chart looks like the exact tragectory of the "Rod Of God" weapon usa used on china!

 

After the latest round of yuan devaluing, look for another "chemical explosion" at or near one of china's "super computers".

Thu, 01/07/2016 - 14:03 | 7012450 silverer
silverer's picture

The romanticists and dreamers are the last to get on the reality train.  Want to know when everyone realizes that the excrement is definitely on a true path to the rotational air moving instrument?  Watch Elon's outfit, Tesla.  As long as you see any gains posted, the dreamers still don't get it.

Thu, 01/07/2016 - 14:15 | 7012545 FreeNewEnergy
FreeNewEnergy's picture

There's no upside in US equity markets. The Dow, S&P, and the NAZ all hit all-time highs in May, 2015.

NAZ hit correction level today. S&P and Dow aren't far behind.

This is not 2008 all over again. This time is different™. That was a credit/liquidity event. This is an asset depreciation/solvency event. Much more serious.

Thu, 01/07/2016 - 14:17 | 7012557 Sizzurp
Sizzurp's picture

Wake me when we get to 14k

Thu, 01/07/2016 - 14:22 | 7012591 The Longest Call
The Longest Call's picture

PPT ramp up at close?

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