Credit Crashes, VIX Tops 14 As Stocks Open Lower For 7th Straight Day

Tyler Durden's picture

Something changed...

Futures were weaker overnight but dumped at the cash open...


As the collapse in HY credit accelerated... worst day for HYG in 3 months


HYG is now negative year-to-date...


With spreads crashing back abopve 400bps...


USDJPY was unable to save stocks and VIX is now topping 14...


VIX is starting to catch up to credit...


Equity markets are down at the open for the 7th straight day... Trannies (blue) and Small Caps (dark red) are the worst performers but Nasdaq (green) is plunging today...


It seems like the Saudi debacle broke something...


Or is this why?

Did the buyer of first and last resort just disappear?

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SoilMyselfRotten's picture

....and goild got an unscheduled rectal exam

FreeShitter's picture

The cb's have us in a safe space from any harm.

ParkAveFlasher's picture

Can we have a Gartman daily overlay on these charts?  It's relevant.

Ron_Mexico's picture

hey, he says we're in a bear market. Well, at least this morning he does.

tocointhephrase's picture

Research Virgin Galactic vs Sputnik 

GUS100CORRINA's picture

Credit Crashes, VIX Tops 14 As Stocks Open Lower For 7th Straight Day

My response: This cycle of VIX, Credit and Stock Valution interactions can become a vicious DEATH SPIRAL from which there is NO END. Why: LEVERAGE IS OFF THE CHARTS!!!! What we have is LTCM on STEROIDS.


The CENTRAL BANKERS know exactly what they have done to fuel this out of control equity/bond mania.

All we can see is DEBT as far as the eye can see. Very sad.

Serfs Up's picture

Indeed.  Nothing has fucking changed.  As I type the ""markets"" are being frog-marched back to green.

Put a godamned ruler under them when they want to.

Meanwhile, the middle class is being destroyed.  

When the time comes, I whope to be on the tribunal meting out punishment.  The central bankers will be at the top of the docket.  An example that will never be forgotten by future generations must be made of them.

LawsofPhysics's picture

LOL!!  Equities are still within 1% of the all time high.

runningman18's picture

That's not the point.  The behavior of equities has changed the past week.  We'll see if the change continues or not, but it's certainly worth pointing it out. 

LawsofPhysics's picture

Wake me when it is down 30% or more.  In the meantime I'll keep collecting dividends asshat on the equities I hold. Many of us already went to cash positions, but there are still dividends to collect from good companies that actually do provide real products of real value. Most of my selling was in banking or healthcare related stocks. There is still a lot to sort out in these sectors of the eCONomy.  Keep the war stocks folks, always a winner when power and control is being "renegotiated" (as it is now).


gatorengineer's picture

They just needed some shorts to spank to fuel the next wave higher.

DEMIZEN's picture

very well put. if there is no market or price discovery mech there is no limit other than money supply. btfd.

runningman18's picture

Again, you miss the point.  A drop of 30% is not going to happen without warning.  There will be signals of a change in the bull market bubble.  This may be a signal of a greater drop.  Watch the next bounce.  If it fails to impress, the trend may be shifting.  No bubble lasts forever, even in a manipulated market.   

DEMIZEN's picture

if it fails to impress the fed will turn the pumps to 11. we passed the "crash rubicon" long time ago. no sane policy maker  pulls sticks out if this pile of shit mikado.

runningman18's picture

The Fed will crash stocks deliberately and blame Trump.  They are already pulling the plug on stimulus.

LawsofPhysics's picture

"No bubble lasts forever, even in a manipulated market" -- said my father in 1971 and my grandfather in 1913.

LMFAO!!! NO YOU still miss the point!!!! This time is different in so much as this time we are dealing with a GLOBAL CURRENCY COLLAPSE/CRISIS!!!

ALL fiat currencies will die, the "markets" they are "pricing" will go to the fucking moon!!!

runningman18's picture

Your father and grandfather were right.  How many equity bubble collapses have happened since then, lol!  If you think the current bull market bubble is going to continue much longer you are delusional. 

LawsofPhysics's picture

Again, LMFAO!!!

hold tight to all those paper/digital promises moron!

"Full Faith and Credit"

same as it ever was!!!!


runningman18's picture

What are you talking about?  You seem to be having a secret argument with yourself rather than addressing my point. 

Erwin643's picture

He's just one of those frustrated old farts, who have missed-out on these markets, because he's been listening to Harry Dent, Jim Rickards, etc. on the internet.

"It's all gonna collapse tomorra', god damn. Buy gold and silver !!!!"

Except gold and silver haven't made shit for the last several years.

runningman18's picture

Well, gold has done relatively well over the past couple years.  Silver not so much.  I agree that stocks are in a bubble, it's the contention that the bubble goes on forever that I disagree with, considering no bubble in history has gone on forever.  This bubble is way past due for a major correcton, which is why watching changes in trends, like the changes over the past week, is important.   

FreeNewEnergy's picture

If you're talking about the Dow and using Common Core math, maybe.

Using real math, it's down 1.42% from ATH.

Not my downvote, even though you deserve it.

BTW, at the start of the GFC in 2008, gold and silver were whacked harder than stocks, so, except liquidation sale, buying opportunity, then higher, maybe all over a 6-9 month span, or, maybe a long period of deflation/depression (3-7 years).

Sorry to be so optimistic.

LawsofPhysics's picture

eventually that DENOMINATOR is going to ZERO.

But yes, technically you are correct.

"Full Faith and Credit"

FreeNewEnergy's picture

I welcome the coming carnage.

The major averages are up enormously since the Trump election. Now, since the elite aren't happy with Trump, and he's been boasting about stock market performance, they've got him where they want him.

Prepare for impeachment proceedings, recession, and other ass-reamings.

BTW: in case anybody noticed, volume on the major exchanges was the highest in 5 months. Probably going to beat that handily today. The crash has begun.

More popcorn for everybody, at 1-1.25% interest, of course.

Go ahead, FOMC, raise those rates some more, trigger recession right in the middle of holiday season.

Merry Christmas to all...

agstacks's picture

"Worst Chrismas on record" love those.. lol

Consuelo's picture



While I understand your sentiments - and agree with them in principle, be careful what you wish for.

Madolf Sanders Hitler's picture

No he's got them where he wants them. He took credit for stocks so he'll pin bankers with blame for declines. 4dchess

Erwin643's picture

Halelujua (or however it's spelt)!!!

Long UVXY until we hit bottom.

Technicals on SVXY say we're not done yet.

P.S: Is it OK to eat ice cream instead of popcorn, while watching the market drop?

agstacks's picture

Buy the dip!  

Silver Savior's picture

It's going to be a wet Christmas. Oh well. 

. . . _ _ _ . . .'s picture

When VIX and Vietnam are the only two major global markets up, things are not good.
Things will stabilize by noon and start to reverse.

But BTC way up and silver hammered?
Strange days.

Erwin643's picture

Really? SVXY can't get above the 50-line on the 15 min. RSI chart. On the daily chart it broke below the 50-line on Full Stochastic. 

This puppy's going down for at least another day, possibly all the way down to the 20-week MA.

Yen Cross's picture

     The party is just getting started. Three carriers pack hunting. 

 I'm layering in AMZN puts. There's massive sellers that are going to unload.

artvandalai's picture



Big deal.

tocointhephrase's picture

Reasearch:  Virgin Galactic vs Sputnik

0valueleft's picture

The 9th floor  at Liberty street  are having an early xmas party. They'll return to their desks this afternoon and control the bleeding to 30 70 pts down by 4:00, or maybe even call in a fed dove to speak action it to 30-70 in the green.


0valueleft's picture

True, I just didn't know how to spell it.

Seasmoke's picture

Gold over $2000USD yet ???

FreeShitter's picture

Maybe in your next lifetime ;)

Consuelo's picture



If it was, there would likely already be in progress, widespread distribution chain failure for every day necessities, with the attendant chimp-outs in the major metropolitan areas.

A. Boaty's picture

Why does an asset with a stable price have more value than an asset with a volatile price?

fulliautomatix's picture

"It seems like the Suadi debacle broke something."


Yup - that there is your black swan. $800 billion looking for a place to hide, quickly. It'll end up going to the lawyers in fees. 

ludwigvmises's picture

Where is "credit crashing". HYG down 0.25% on my screen.

Dilluminati's picture

It is crashing in deliquent accounts: autos, college payments, credit cards.   Inversely: you are seeing cord cutting increase as the consumer is squeezed.  It was almost laughable listening to CSPAN yesterday and hearing touting of the tax cut that was being proposed and then the corresponding argument that taxable healthcare was REQUIRED to keep the young and healthy in the pool.  Meanwhile the ability to buy things in the real economy erodes, home ownership falling because the young and healthy must pay for the parents who could no nothing more than selfishly demand moaar from their children.  I listen to people call into CSPAN and demand that someone pay for their healthcare.  They should call their children and tell them what they are really advocating.

Thethingreenline's picture

“A collapsing yield-curve is the cornerstone of Obama Economic its purest form”


shankster's picture

Hurry get the controllers back to their work stations..'fix' this up before the sheeple start scurrying in their pens.

Thethingreenline's picture

Green by heard it here!


Dilluminati's picture

hmmm real economy isn't that great.  All the macro economics illustrate one fact: that the inequality in wealth distribution will erase allot of any perceived forward progress of any economy and the reality of bubble in a stage of ongoing debt-deflation is occuring.  You just cannot explain the facts irrespective of the wealth affect with the compensation and growth in wages (real economy) and the disproportinate wealth to the 1% and the result when those dollars are wiped from ledger.  Ergo the sum is less dollars in the economy as a consequence of tbe wealth destuction of debt.

Now I don't care about being right, or any short term position, I anchored to non-callable 10 year FDIC insured in retirement and that is going to make me happy for some time to come, beyond the next reckoning.  However when I look at the tax debate the best comment I heard was that the inability of this so called globalism to self regulate, where the corporations were unnacountable to any taxation will be identified as a historical failure of the era.  The 1% irresponsible as they are will be clearly identified as the culprits.

the coinbase is the last telltale sign that this is a bubble, it's not going to end well.


Turin Turambar's picture

LOL, sure.  Something has changed until 10:30am when the PPT has to get up and go to work.  The economy is booming.  The PPT has doubled the number of people it employs because it now has to work in two shifts.  There's the 10:30 am team and the 3:30pm team.  :-O