Market Massacre: Worst Ever First Week Of Trading

Tyler Durden's picture

What better analogy than this...

 

This was the worst first week of the year for US equities... ever!

Dow... (even worse than 2008)

 

S&P...

 

Europe was a disaster...

 

And epic for China...

 

And while only Trannies are in a bear market (down 20%) in the US, these 7 developed world markets are already there...(h/t SocGen's Andrew Laphthorne)

 

*  *  *

So let's look at the week in stocks...

It was all looking so awesome last night...

 

Futures show the swings better (with China weakness as an early week driver and US as late-week driver)...

 

Small Caps and Trannies are down around 7% this week, S&P best but still down over 5% (and down 6 of the last 7 days)

  • S&P down 5.3% - worst week since Black Monday
  • Dow Industrials down 5.6% - worst week since Black Monday
  • Small Caps down 6.9% - worst week since Nov 2011 - Russell 2000 lowest close since since Oct 2014
  • Dow Transports down 7.1% - worst week since Sept 2011 - lowest close since Nov 2013

The Dow is down 1400 points in a week (from 17,660 to 16,250)

 

Utes managed to end the week unchanged but Homebuilders collapsed... Financials and Materials were next worst...

  • Financials down 6.6% - worst week since May 2012
  • Materials down 7.4% - worst week since Sept 2011
  • Homebuilders down 8.6% - worst since Aug 2011

VIX broke back above 25... (VIX up 60% in 2 weeks - biggest jump since Black Monday)

 

What did Janet do? Post Fed rate-hike - S&P down 6.5%, Gold up 3%, 30Y Bonds up 1.6%

 

 

Stocks are about half-way there...

 

Since the end of QE3, Trannies are down 20% and only Nasdaq is holding any gains...

 

The FANTAsy stocks are all red since the end of 2015 (with TSLA and AMZN worst)...

 

Energy Stocks finally woke up to reality in the credit underlying commodity...

 

US financials have started to plunge back to credit/yield curve reality...

 

With MS and GS back below Tangible Book Value for first time in 2 years...

 

 

 

Away from stocks...

 

Treasury Yields tumbled, closing at their low yields of the year with the belly of the curve outperforming... 10Y yields dropped 14bps this week - the biggest drop in 3 months.

 

FX markets were volatile but by the end The Dollar Index closed unchanged (against the majors)...

 

But the USDollar surged 1.5% against Asian FX - its best week in 5 months... (Asian FX is its weakest since April 2009 against the USD)

 

But AUDJPY - probably the world's most-levered carry trades - collapsed 6.7% this week!! It's worst week since May 2010...

 

Commodities were very mixed this week...

 

Gold rallied 4% this week - its best 'first week of the year' since 2008... (best week in 5 months) - breaking 2 key technical levels...

 

Crude down 5 days in a row touching a $32 handle at the lows... biggest weekly drop since Nov 2014

In Summary - Sell The Dips!

See you all Sunday night!

Charts: Bloomberg

Bonus Chart: Investors seeking safety are greatly rotating from Triple AAA stocks to Gold stocks (h/t SocGen's Andrew Laphthorne)

 

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PoliceThePolice's picture

 Alcohol may be man's worst enemy, but the bible says love your enemy.
~Frank Sinatra~

Better than expected Jobs number and this is the best they could do.
I think Janet Yellon is gonna need a drink after this week.

Soul Glow's picture

Bear Stearns is fine.  They're fiine!

Squid Viscous's picture

"I think this sell off in GoPro is way overdone...they have an amazing product"

Croesus's picture

I'm going Old School....

"Jump, You Fuckers"!

WTFRLY's picture

SMFH, can't wait to start hearing people mention "de-leveraging" again.

highandwired's picture

Bitcoin is having a good week. 

"In 2015, with the exception of people that held Bitcoins,

the performance of all asset classes has been poor."  Marc Faber, January 2016 

https://youtu.be/6Oq_Ze8LG-Q?t=3m5s

r00t61's picture

The deer in the headlights are back!

I hope this doesn't cause a +1000 bounce in the Dow next week.

Herd Redirection Committee's picture

Quick, get me the 'tear stick' so I can cry like Obama.

WonderDawg's picture

I had a great week. I had IWM and QQQ puts, so it's steak and lobster for me tonight!

The9thDoctor's picture

Robert Kiyosaki hit an absolute bullseye dead on!

He wrote "Rich Dad's Prophecy: Why the Biggest Stock Market Crash in History Is Still Coming...And How You Can Prepare Yourself and Profit from It!" in 2002 predicting that in 2016 the stock market would crash and boomers will lose everything and be unable to retire.

He borrowed the TARDIS so he could write that book!

The very first week of 2016 was the worst week in stocks in history and he predicted this back in 2002!

Read the book reviews on Amazon.

SumTing Wong's picture

I'll go ZH old school.

Got popcorn, bitchez?

WonderDawg's picture

Thanks! I'll check it out, I appreciate the reference.

Barnaby's picture

Man, Asians always have the best tech.

geno-econ's picture

That Deer in the headlights looks like Mike Holland, the mass media China promoter/advocate extrodinaire. 

fockewulf190's picture

I'm expecting that next Friday we"ll be seeing a nice spread of 6 or 7 pictures of Kermit in various poses of horror and gruesomeness.

Realname's picture

Its the Dow(n) Jones...

masrdavy's picture

U bet...!!!!  Dow will somefuckinhow skyrocket by the end of next week...fundamentals mean a shit in this world..

dontgoforit's picture

Good start to a bad ending.

Mr. Universe's picture

Everything is Awesome, when you're part of the Tribe.

ShorTed's picture

All these charts showing bad news nd not one camparison to, "since Lehman"?

CrazyCooter's picture

.

All these charts showing bad news nd not one camparison to, "since Lehman"?

Worst comment since Lehman! :-)

Regards,

Cooter

stormsailor's picture

if i had been short on thursday i would have sold thurday night.  i have been burned so many times that i have scar tissue.  and that was the best comment since lehman

Bastiat's picture

OK, which ZHer was playing Frank?

Bush Baby's picture

I haven't seen that Stallone clip in a while - pretty fucked up

Tom Servo's picture

"Closed WELL off the lows"

 

as heard on CNBS

WayBehind's picture

Congrats! You must be one of the two people still watching that liberal media wall street banksters propaganda shit show channel ... 

Ward cleaver's picture

Yeah since u r only one watching could u post some of the libtards explanations as why the economy is so great. I'm particularly interested in Steve liesman and if they have Fartman on as "special guest"

stormsailor's picture

you left out stinking yankee capitalist lying running dog imperialist vermin

Winston Churchill's picture

Paper tiger yankee caitalist etc.etc

Dead Canary's picture

Look at me: I have a stick, AND DUCT TAPE. Ta-da!

Go.... semi-pro!

ZippyBananaPants's picture

I will never buy a GoPro, I will never Twitter, and I will never Facebook or shop at Gap, but I use the hell out of Amazon!

skinwalker's picture

Me too. I hate stores. That said, many times I will browse amazon to see what's available and then try to get it cheaper from somehwere else. Amazon has by far the best selection of any ecommerce joint. 

RiderOnTheStorm's picture

That's exactly what I do!!!  We could be related.

DetectiveStern's picture

I only use the marketplace on Amazon rather than buying directly from them. I like them to make as little money as possible off me.

Tinky's picture

That's a shame about Twitter, as your economical post fit the under 140 character limit with 17 to spare. 

stormsailor's picture

me neither, but i really like looking at gap

VegasBob's picture

You can buy an unbranded Chinese-made GoPro type camera, identical to the branded model, for $20 wholesale.  Why pay $400 for the branded version?  By the way, that's probably why the stock is down 75% from its 52-week high.  My guess is that it's got another 75% to fall - so it's basically a $4 stock currently trading for $16.

Twitter is utterly useless.  A complete and total waste.

Facebook is basically a useless time-waster too, but if you have extra time on your hands, what the hell.  Most television is worse.

Gap? What the hell is Gap?

Amazon, yeah!!!

Peak Finance's picture

Actually you should get twitter to follow zerohedge & Eric Scott Hunsader worth it for those two guys alone.

debtor of last resort's picture

We'll need GoPro to watch the sell off.

Temporalist's picture

GoPro! For the bankster that can't keep away from 30ft embankments.

Antifaschistische's picture

I completely agree about GoPro....and, after all...it is a camera, and no one will ever be able to make a product that competes with a camera.

Yen Cross's picture

  The Chinese are selling $69.99, water proof Go-Pro's.

 Waterproof Digital Camera | eBay

 chinese go pro | eBay

LooseLee's picture

Translation:

I have a huge long position in GoPro and if this keeps up I'll be in deep S&%$!

nope-1004's picture

"We see no evidence of systemic risk.  In fact, our models show solid growth and price gains in a variety of markets."

- Ben Ber-liar on housing, 2005.

 

If the markets are highly influenced by governments, then these charts indicate the sovereign debt crisis is forging ahead full steam.  Only question is:  Can they stop it?

 

debtor of last resort's picture

Their stops will be triggered.