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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Fri, 01/08/2016 - 17:33 | 7019174 Herd Redirectio...
Herd Redirection Committee's picture

Stash cash?  Is that French for "Keep Stackin', Bitchez"?

Fri, 01/08/2016 - 16:31 | 7018881 thismarketisrigged
thismarketisrigged's picture

FUCKING LOVE THIS RANT!!!

 

WELL DONE

Fri, 01/08/2016 - 16:42 | 7018938 Paint By Number
Paint By Number's picture

"That man liked to use the 'F' word..."
---Forrest Gump

Fri, 01/08/2016 - 16:51 | 7018989 dogfish
dogfish's picture

Nice rant Kaiser.

Fri, 01/08/2016 - 16:55 | 7019011 Chupacabra-322
Chupacabra-322's picture

@ Kaiser,

Who are the mystery buyers?

The Scum Fucks at the Fed. That's who.

Fri, 01/08/2016 - 16:59 | 7019036 Kaiser Sousa
Kaiser Sousa's picture

yep...

and the Exchange Stabalization Fund located in the anus of the N Y Fed.

scumbag sociopaths...

Fri, 01/08/2016 - 18:11 | 7019320 Greenie
Greenie's picture

KS, please fix your cap lock. It gets old looking at it day after day

Fri, 01/08/2016 - 18:49 | 7019453 Kaiser Sousa
Kaiser Sousa's picture

FUCK OFF.

Fri, 01/08/2016 - 18:20 | 7019363 messystateofaffairs
messystateofaffairs's picture

Jesus Christ man you are watching the shit show too much. The language. Give up that shit and stay home with the kids or grand kids and try to relax.

Fri, 01/08/2016 - 18:50 | 7019457 Kaiser Sousa
Kaiser Sousa's picture

thanks..

not.

Fri, 01/08/2016 - 16:05 | 7018710 dimwitted economist
dimwitted economist's picture

FUCK!

IS REALITY Setting in yet?

Fri, 01/08/2016 - 16:05 | 7018714 Newbie lurker
Newbie lurker's picture

Shit eating grin

Fri, 01/08/2016 - 16:08 | 7018737 NoVa
NoVa's picture

Yup  -  especially being long SPXU and TLT for about a month.

Whew Hew !!!  Party on Wayne !

Fri, 01/08/2016 - 16:18 | 7018792 BadLibertarian
BadLibertarian's picture

I put a big slab of Bitcoin between a couple slices of TVIX, and the results went something like this: 

https://www.youtube.com/watch?v=ecc0nbg9m-8&t=6s

Fri, 01/08/2016 - 16:30 | 7018877 herkomilchen
herkomilchen's picture

LOL

Fri, 01/08/2016 - 16:39 | 7018918 BadLibertarian
BadLibertarian's picture

And anyone who creates a hardware wallet with "Bad Motherfucker" printed on it, that I can put the proceeds into, can pretty much name their price AFAIC.

Fri, 01/08/2016 - 16:47 | 7018965 Herd Redirectio...
Herd Redirection Committee's picture

You know, when I was young I thought the rappers with gold grills were idiots.  It took me a while to realize that it was EVERYTHING else the rappers wasted their money on.  If Mr. T actually owns all those necklaces, he actually did pretty well for himself.

Fri, 01/08/2016 - 16:08 | 7018715 curbjob
curbjob's picture

Always funny looking at cnbc's  pics of traders faces at the end of a big down day ... collectively it appears as tho every trader was forced at gun point to eat a 5# wheel of manchego cheese and the equivalent weight  of prunes and now, in the aftermath, contemplate miles of a asphalt desert landscape armed with nothing but a yeyo spoon and a copy of the WSJ.

Fri, 01/08/2016 - 16:20 | 7018829 Osmium
Osmium's picture

It has to be a shock for them.  Wait, markets can go DOWN?  WTF?

Fri, 01/08/2016 - 16:52 | 7018994 FreedomGuy
FreedomGuy's picture

I always like that trading can be suspended when markets are down but never suspended when they are rocketing up.

Sat, 01/09/2016 - 00:14 | 7020583 r3phl0x
r3phl0x's picture

Only when the Fed voluntarily cuts off the CTRL-P.

Fri, 01/08/2016 - 16:06 | 7018718 Squid Viscous
Squid Viscous's picture

yes! the deer! finally!

Fri, 01/08/2016 - 16:11 | 7018761 Paint By Number
Paint By Number's picture

'Da deeer, baaasss, da deeer....!

Fri, 01/08/2016 - 16:19 | 7018811 xrxs
xrxs's picture

Had a good laugh.  Well played, ZH.

Fri, 01/08/2016 - 16:21 | 7018833 Xscream
Xscream's picture

100 % deer even ..............it's the best day of my life. fing a buba 

Fri, 01/08/2016 - 16:23 | 7018840 e_goldstein
e_goldstein's picture

Still waiting for Donkey Kong to show up, cause, you know, it seems like it's on.

Fri, 01/08/2016 - 18:59 | 7019487 Taint Boil
Taint Boil's picture

 

 

Holy Shit Batman, deer overload – quick Robin get the bat hunting knife …

 

Fri, 01/08/2016 - 16:06 | 7018719 khnum
khnum's picture

Houston...we have a malfunction

Fri, 01/08/2016 - 16:12 | 7018765 FreeShitter
FreeShitter's picture

Yes we do..we now have a gay negro mayor plus more fucking traffic courtesy of the millions of illegals that have freshly joined the ranks of the rest of the ghetto trash here.

Fri, 01/08/2016 - 17:11 | 7019103 AIfhu
AIfhu's picture

Sylvester Turner = Kwame Kilpatrick

 

Fri, 01/08/2016 - 21:20 | 7020078 e_goldstein
e_goldstein's picture

or Ray Nagan.

Fri, 01/08/2016 - 16:06 | 7018721 stant
stant's picture

Double deer dipping

Fri, 01/08/2016 - 16:08 | 7018732 Dr. Engali
Dr. Engali's picture

We're on an express ride to hell.

Fri, 01/08/2016 - 16:15 | 7018791 Winston Churchill
Winston Churchill's picture

Is that good or bad Doc ?

 

Fri, 01/08/2016 - 16:08 | 7018735 KnuckleDragger-X
KnuckleDragger-X's picture

Tsk, somebody lost the key to the PPT's cage. I expect they'll try a big rip on Monday, and it'll be inteeresting to see if anybody plays.......

Fri, 01/08/2016 - 16:16 | 7018795 jakesdad
jakesdad's picture

they must be on the same cox circuit(s) that took denninger down - I'm sure they'll be back on job monday!  ;-)

Fri, 01/08/2016 - 16:54 | 7019007 Dimons jock
Dimons jock's picture

Nah we're gonna see how the chunky chink handles no circuit breakers on da real, monday. 400-600 point down day coming up for the US & maybe the ppt might step in for 1/2, imo. This sell off been slow & steady no ones scared.

Fri, 01/08/2016 - 16:08 | 7018736 Keltner Channel Surf
Keltner Channel Surf's picture

“Yellen, It Was Really Nothing”      from  “William, It Was Really Nothing”      by  The Smiths

The pain hits hard in this hedge fund town
The Dow has dragged you down
Oh, the blame falls hard as the pensions drown
The Fed has let you down    (Oh, no)

And everybody tried to catch this knife  
And god knows I've bought the declines  
God, now I’ve got to resign

Yellen, Yellen it was really nothing
Yellen, Yellen it was really nothing
...  it was their retirement

How can you stay with a Fed Chair who’ll say
“Oh, would you like some more QE?
And, if you’d like, rates at minus-three
It might start a new upswing”

Would she like to bury me?
Thinks the market’s on a string
I don't believe in anyone … except myself

Oh, Janet, Janet you are really something …

Fri, 01/08/2016 - 16:16 | 7018773 Squid Viscous
Squid Viscous's picture

double dipping on the Smiths...15 yard penalty

i'm sure it's funny though, if i could tolerate their music

happy new year KCS

Fri, 01/08/2016 - 16:23 | 7018842 Midas
Midas's picture

Emo before emo was gay.

Fri, 01/08/2016 - 16:44 | 7018947 Keltner Channel Surf
Keltner Channel Surf's picture

Hard to imagine Morrissey fronting a band like Mineral, but he might have done justice to Sunny Day Real Estate's "Seven".   Replace the snarl with his croon, and it almost sounds like his theatrical style :)

Fri, 01/08/2016 - 17:07 | 7019077 Jethro
Jethro's picture

Emo is upbeat compared to Morrisey. Even his hair is so emo that it cuts itself...

Fri, 01/08/2016 - 16:29 | 7018872 Keltner Channel Surf
Keltner Channel Surf's picture

Aw, c'mon Squid, Smiths parodies were amongst the most fun to create ("Heaven Knows I'm Vulnerable Now", "The More That You Short Me, the Higher I Get", etc) given the clever lyrics.  Follow the link in my profile, click on "Smiths" in the "Labels" section, and try the YouTube links at the top of the parodies, you might change your mind . . .

Fri, 01/08/2016 - 16:54 | 7019001 Aaronson.Jones....
Aaronson.Jones.Rutherford's picture

Checked the site. My gawd; The Night They Drove ol Vixie Down is quality. Best one I've seen, absolute class.

Fri, 01/08/2016 - 16:28 | 7018804 Sorry_about_Dresden
Sorry_about_Dresden's picture

Would you like to marry me? If you like you can buy the rings.....I don't dream about anything.\ ...except myself.

Fri, 01/08/2016 - 17:05 | 7019069 Jethro
Jethro's picture

My favorite tune is "Fed rates in Coma"

Fri, 01/08/2016 - 16:08 | 7018738 wmbz
wmbz's picture

Jack Yellen best get out her commercial grade knee pads.

I have a feeling Jamie & Lloyd will be inviting her over this weekend!

Fri, 01/08/2016 - 16:10 | 7018745 R19
R19's picture

So much value here.

Fri, 01/08/2016 - 16:10 | 7018746 vegas
vegas's picture

BTFD's and sleep with the fish.

 

www.traderzoo.mobi

Fri, 01/08/2016 - 16:10 | 7018749 Yen Cross
Yen Cross's picture

 Companies are hiring foreign slaves... Where's my " Purchasing Power?"

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