"Shit's Starting To Break" - Stock Slide Escalates Amid Copper, Credit, & Crude Carnage

Tyler Durden's picture

One veteran macro trader summed up the markets perfectly "Shit's starting to break" - noting that 'real' macro data decoupled from stocks at the start of the year, VIX decoupled from stocks three weeks ago, EM broke over a week ago, Copper snapped last week, and now High Yield credit is breaking - stocks are always the last to catch on...

 

Russell 2000 down 4 days in a row - longest losing streak in 3 months; S&P's 4-day decline is worst since right before the election; Trannies down 3% in the last 4 days...

As Ryan Detrick (@RyanDetrick) notes, this is the first back to back loss for the S&P in 25 days. The previous 3 times it got to 25, the streak ended also.

Bloomberg's Andrew Cinko tallied up the drop from peak to trough for the five multi-day retreats in Nasdaq since election day:

  • March 1 peak: -1.4%
  • February 21 peak: -1.2%
  • January 26 peak: -1.7%
  • December 27 peak: -2.6%
  • November 29 peak: -3.1%

Small Caps are the worst performers of the last 4 days - biggest drop since before the election - testing key technical levels

 

Another day, another desperate attempt to crush VIX and drive momentum back into stocks... (VIX LoD 11.04)

 

Bonds and Stocks both sold off together again - 3rd day in a row - (as Risk-Parity funds contonued their biggest slide of the year)

 

Treasury yields rose modestly today (weak 3Y auction), with modest steepening in 2s30s...

 

HY Bonds have broken below key technical resistance (Uptrend line and 50-dma) with the biggest drop in price in almost 3 months...

 

The last 4 days are the worst for HY Credit since before the election...

 

And HY's breakdown follows Emerging Markets decoupling last week...

 

And Dr.Copper's not buying it either...

 

And stocks gave up their grip on macro data reality a while back...

 

2s10s Breakevens curve has collapsed to its lowest since June 2008

As RBC's Mark Orsely points out, the 2s10s breakeven curve has inverted - meaning the market expectes higher inflation in the short-run than long-run.

 

The USD Index managed a modest gain for the second day in a row but remains well below Friday's highs...

 

Gold dropped to one-month lows (futures down 6 days in a row - longest losing streak since election) - Gold futs broke below the 100-DMA today

 

Silver was also hit hard - biggest 4-day drop in 3 months...

 

Copper was clubbed like a baby seal - the biggest 4-day plunge in 10 months sent the economics PhD to two-month lows...

 

Desperate jawboning from the Saudi oil Minister and OPEC's Barkindo failed to sustain any gains in crude...(machines ran the stops but the chatter couldn't sustain it)

 

Finally, this remains the WTF-est chart we know of right now - as The Fed's forecast for GDP collapses, so the odds of a rate hike soar (FF Futs tumble)...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
NDXTrader's picture

The Dow was down 29 points?

Belrev's picture

Looks like Obama will get off the hook for wiretapping of Trump tower.

https://www.youtube.com/watch?v=GHKXjRRbuj4

PT's picture

Yeah, you can do that when you're owned by someone who owns the DoJ and the CIA and MSM.  You even get to change your mind and no-one notices ... or if they do notice, what are they going to do about it?

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) PT Mar 7, 2017 5:19 PM

Bullish.

American Psycho's picture

I would absolutely buy a shirt / hat that said, "Make BTFD Great Again."

silverer's picture

I picture that animated "How The Grinch Stole Christmas" flick, where the sled loaded with copper, stocks, oil, credit default swaps, EFT funds, etc. was teetering on the cliff, just ready to go off...

Paper Boy's picture
Paper Boy (not verified) silverer Mar 7, 2017 6:09 PM

Fuck your mom. Buh Bitcoin!

https://localbitcoins.com

techies-r-us's picture
techies-r-us (not verified) stizazz Mar 7, 2017 6:29 PM
Paper Boy's picture
Paper Boy (not verified) techies-r-us Mar 7, 2017 6:30 PM

Bilblahcizm Institute! I got institutionalized there for 3 years!

Mano-A-Mano's picture
Mano-A-Mano (not verified) techies-r-us Mar 7, 2017 6:31 PM

I don't usually panic, but when I do I run.

Zero_Ledge's picture

Worst of all, the SNAP stock I bought through Trade12.com with 10X leverage is tanking. I hope Mike Tyson doesn't show up for a margin call.

 

Winston Churchill's picture

Still a bitcoin fanboy after todays revelations?

Forest was right, you can't fix stupid.

Paper Boy's picture
Paper Boy (not verified) Winston Churchill Mar 7, 2017 7:00 PM

What revelations?

Mustafa Kemal's picture

Hey PP, you ready to buy the dip Mar. 11?

Paper Boy's picture
Paper Boy (not verified) Mustafa Kemal Mar 7, 2017 8:15 PM

I buy more dip than a broccoli stick.

Looks like Bitcoin might fall for the next few days but who cares. We're in this for teh long haul!

roadhazard's picture

No shit Sherlock. Trump just vomited out fake news. I don't need to watch any video.

PT's picture

Must. Distract. From. Vault 7.

Glad you brought that up.  Has anyone found anything interesting in it yet?
What about PizzaGate?  Have we got anything that can stand up in a court of law yet?

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) PT Mar 7, 2017 5:28 PM

A court of law as in the people who decide that the Constitution says that the government can demand, by force of gun, that citizens buy what the government deems "good for them?" Those kinds of courts of law?

roadhazard's picture

WiKi shot their wad long ago.

SILVERGEDDON's picture

Meh, this is a fart in a windstorm. 

Wake me up when China goes all Greece, Europe turns into Refugee Venezuela, and Washington has been hit by a North Korean nuke. 

Then the market will see real change.

And, I still won't give a fuck.

Watching brokers hitting  the pavement like a human ticker tape parade will make for good tee vee - especially the Goldman Sachs crowd.  

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) SILVERGEDDON Mar 7, 2017 5:29 PM

I'm just glad the the North Korean nukes will only make it to CA, if that. CA could get it's separation from the U.S. after all. A win-win of sorts.

Casey Jones's picture

@LowerslowerdelawareLSD
What a fucking ignorant statement. You actually want nuclear bombs to drop on the United States of America? Nice sentiment. I don't even live in California anymore and I still think you're a full blown troglodyte. Or a dick with ears as we used to say.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Casey Jones Mar 7, 2017 6:15 PM

My god you're an overly emotional moron. That pretty much covers it.

Now get off of ZH and go back to your safe space where you will be micro-aggression free. You are being triggered here.

Paper Boy's picture

And you're just some farmer dude. I am NOT a productive member of society.

Food Loaf Junkie's picture

Like we are really surprised by that revelation :)

Casey Jones's picture

I just get tired of people talking about nuclear war like it's some kind of joke. Those things start flying and its game over for everyone. 

We get it: you hate California. How very clever of you.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Casey Jones Mar 7, 2017 10:05 PM

Um... Based on the votes, you don't get it.  Sorry sweetie.

Countrybunkererd's picture

about how i feel too.  Add the 535 "representatives" and the alphabets to the jumping and i would go to ZERO productivity.

Giant Meteor's picture

Tee Hee, I specially selected this short clip for ya!

Shawshank Redemption - Fart In The Wind

Lord Its A miracle!

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

RockRiver's picture

Crude down 36 cents and we call that carnage...LOL!

walküre's picture

"The Dow was down 29 points?"

SNAP is down 10%

but sure, focus on the fucking tape they paint

cash is gonna be King again

Raffie's picture

PM stand for Precious Metals or Physically Manhandled?

order66's picture

Should be good for one more run up.

Pickleton's picture

"Trannies down 3% in the last 4 days..."

 

so what does that mean, only the tip got sucked?

Snaffew's picture

their own tip maybe---if they are acrobatic enough and bare assed in the confines of their bedroom

NugginFuts's picture

I totally need one of those "MAKE BTFD GREAT AGAIN" hats....

 

Quantum Bunk's picture

fuck the USD.

 

King Euro.

 

You closet dollar bulls can chow Yellins dollar muff

Snaffew's picture

ugghhh...nothing but old rolls of $100 dollar bills left in that muff--- used to mop up the menpausal gray juices

Kaiser Sousa's picture

markets....

http://www.marketwatch.com/investing/index/djia

hilarious.

DEATH TO THE MONEYCHANGERS.

Dr. Engali's picture

So, BTFD and wait for sane Trump to sell. Rinse and repeat.

Snaffew's picture

you mean wait for "sane trump" to sell out...to the Deep State

STG5IVE's picture

Been here before

FreeShitter's picture

Weak selloff for awhile till the gov't/bankers raise the debt ceiling and then its off to the moon again..BTFD in the meantime.

BigFatUglyBubble's picture

I hate to have to agree, but...

The writings on the wall, and it says: Ctrl-P 

NugginFuts's picture

But FIRST, must raise rate so we can lower it later. Bet on it. 

debtor of last resort's picture

No worries, spyPhone 8 launch next month.