Markets In Freefall: Stocks Extend Worst Ever Start To Year

Tyler Durden's picture

Today's business media summarized...


Today's actual market summarized...


Let's start with this - The market has now reduced March rate-hike odds back to pre-December rate-hike levels (at just 35%)...


Two words - Policy... Error...


This remains the worst start to a year... ever...


Across the major US equity markets, it's a bloodbath...



With the Nasdaq about to be the lasty major index to give up its post-QE3 gains...


Year to Date - it's just as ugly...


And since The Fed hiked rates...


VIX term structure inverted but we are a long way from an August-like panic-bottom...


There is at least some rationality resumiong as weak balance sheet stocks underperform strong balance sheet firms...


With selling out of the gate and only a small bounce in the last hour, equity markets carnaged...


FANGs entered a correction...


And FANTAsy stocks were smashed today...


Lots of head-scratching at how this is possible... except for anyone who pays attention to credit markets...


As HYG plunges to its lowest close since July 2009... Today was worst day in 4 weeks


US Energy credit risk is soaring back to near 2008 crisis highs...

h/t @JavierBlas2


While High yield bonds were crashing, Treasuries were aggressively bid (despite the Inbev issuance), on the verge of flash-crashing a few times after a stronmg 10Y auction...


The USDollar Index ended the day unchanged as early strength was sold - but it remains up on the week... CAD was smashed to new 12 yeasr lows


Gold ansd Silver rallied as Crude and Copper crumbled...


As stocks plunged at the US open so PMs ripped...


As if by magic, WTI's NYMEX close was adjusted very slightly higher to enable a tiny green print... but the trend was clear...


Charts: Bloomberg

Bonus Chart: Some food for thought...

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nink's picture

Why didn't you warn us Tyler

Soul Glow's picture


Buy the Fucking Freefall!

walküre's picture

catch that falling knife (again and again), I dare ya!

Newbie lurker's picture

I have never been more excited to see the China opening bell....

NoDebt's picture

At the suggestion of a ZH article I went and bought everyone Stock Gift Cards in GPRO for Christmas.  Now my whole family hates me.  

nmewn's picture

I just don't understand it, O'Tard said just last night the economy was strong! 

AsinineBovineFeces's picture

Who you gonna believe, Obama or your lying eyes?

glenlloyd's picture

omg it's a barfing bonanza!!!!

TeamDepends's picture

Good thing we have The Fed to- hey, wait a minute!

Nutsack's picture

BTFD is prudent because we know there must be near record shorts, and a rally is in order.

Proctologist's picture

What was strong was the plunge protection teams odor as they were cleaning their underwear.

ThirteenthFloor's picture

Come on Tyler, was hoping for the "blood squirting carnage headlines"

Thank you

mt paul's picture

blood squirting cabbages...

two hoots's picture

This could be many Americans:  (not me)

So I have my Christmas bills, gift cards spent, taxes coming due and am sure I have the start of the flu.  I get home from work, turn on the TV and here the market tanked another 300+ points.

At what point do I say enough of this BS and have my 401K/IRA go to the sidelines or do something (which will accerbate the problem) .

SuperRay's picture

Two hoots, you're giving Americans too much credit.  It's going to be deer-in-the-headlights time for most people who don't have a financial clue, and when they come out of their frozen state they're going to be looking the Unfrozen Caveman Lawyer to sue somebody. 


Damn, Have been holding BIS, sold most of it at 3:50. Regreting it already.

J Jason Djfmam's picture

Should have sidelined when Old Yellen raised rates.

Also, avoid excess exacerbating.

NoDebt's picture

hoots-  I don't know how much more clear I could be with the recommendation I have been making on ZH since JULY OF LAST YEAR:

Stay the hell outta the market until the Fed announces QE4.  And it better be twice the size of the last one.

I think I need to make one of those "buy the fucking dip" cartoons or something.  Somehow my message just doesn't seem to be getting through to everyone.  

And stop exacerbating- you'll go blind.

general ambivalent's picture

Why not go all in on twitter and bitcoin. Usage will skyrocket when the EMP drops.

two hoots's picture

ND, that would be a capital idea.  Or the trading baby thing.  Surely someone on here could help collaborate the idea?   Don't think" Buy the Fucking Ramp" would catch on, it is a short term fading phenomenon.  I do worry about all the money that is/will set on the sidelines (albeit safer).  There are always consequences.


Can't help it.  Banzi7's pics of Janet, Muddi and Hillary makes me want to touch myself.  0)))))

asteroids's picture

Agreed. I've been out even longer than that. Watching stawks and currencies implode. Next up, will be the bond market, that'll be fun. Might take a few months to get started though.

undermind's picture

I'm curious how many Americans don't have a retirement to worry about?

two hoots's picture

13,000 I read earlier;-)

glenlloyd's picture

The answer to that question is: A lot.

Why do you see progressive congress people wanting the govt to get into the business of managing IRA's / 401K accounts? Because then they could spread around the funds from those who have to those who don't have.

walküre's picture

China won't even open.


- Halted 2x when markets dropped > 7%

- PBOC bought the market and stocks still dropped

- Next is the new rule that they won't open when DOW is down more than 300 points

or until they get enough commitments from billionaires who will buy stocks or else!

LowerSlowerDelaware_LSD's picture

catch that falling knife (again and again), I dare ya!

Problem is that algorithms do it regularly.  Watch the incoming signals and buy/sell before them.  It is no longer trading.  It's a hardware/software optimisation game.

Dollarmedes's picture

I'm a little confused: if the market is in an easy money Fed bubble, then how can deflating it be a policy error?

The same shit happened after 2008, when people kept comparing the current price to the peak. IT WAS A BUBBLE, PEOPLE...THOSE PRICES WEREN'T REAL!

CheapBastard's picture

Housing market is next.


And boy, will there be a lot moar layoffs to fuel this Robust Recovery. Heck, if they fire a few moillion moar people, Barry may get the unemployment rate down to 3% before he leaves office.

Excursionist's picture

Beat me to the punch... was about to say the same.

If a 25 bps hike in the Fed Funds rate is a policy error because of a the downdraft in risk assets, then let's graduate from "error" to "monumental fuckup", so water can finally find its appropriate level.

two hoots's picture

Who really cares how a market starts a year, what it does post State of the Union or after the Packers win the super bowl?   Is this investment advice, watercooller/dinner talk (as in "I'm so market savy") or what?  What does it have to do with fundamentals, with anything? 

JungleCat's picture

How do I buy the fucking war that usually follows statist economic shipwrecks?

And yeah, Tyler, why didn't you warn us, you divisive figure, you.


mandalou's picture

Buy crude if you expect war.

Countrybunkererd's picture

So i need to buy oil then.  Can i get 20,000 gallons delivered to rural america via the house of Saud and can i store it in 2 liter pepsi bottles or how does that work...

autofixer's picture

No, the EPA requires above ground, berm protected storage facilities.  You are screwed - signed Uncle Sam. 

walküre's picture

ISIS delivers in jerry cans and cheaper too.

kill switch's picture



War is fucking rolling over the transom at this point,,,,thanks for the tip....I will....



On another note I remember a bartender that would squeegee money of the bar and wonder why he didn't get any tips. I said I'll give you a tip,,,don't smoke in bed you fucking thief.

I'm not sure that was necessary or relevant but he was a Jew. Why oh Why do they do it?

mandalou's picture

Just be sure to understand future contracts with crude(CL) before you invest. Not saying you do not, just hate to see good folks get themselves in trouble with casino instruments by not understanding how it works with rollovers.

kill switch's picture


Thanks for the volley back,,,,Where are you on peak oil?? Infinite growth on a finite planet. This whole fucking mess is related to energy depletion and the grab for whats left,,,9/11 PNAC

MANvsMACHINE's picture

You must be mistaken. A Jewish bartender? Can't be. Jews raise their children to be bankers, doctors, or lawyers. You should know this.

kill switch's picture

Are you shitting me? all Jews are doc law get a grip....

NoGodsNoMastersNoMotherland's picture

You sound like an Agenda 21 Sustainable Development guy ....


Oil is abiotic, that means it gets produced by the earth non stop new, google that and learn about the peak oil fraud and his inventor.

kill switch's picture

you need to hit the books clathrate gun....