Since we lost the deer yesterday as it was run over by bond sellers, it appears everyone else came to the realization that QE cannot be infinite, that EU event risk never went away, and that China does have a credit bubble and so it is time for the monkey. Where-ever we look today there is carnage. The superlatives are all extreme but are the biggest since Europe collapsed in October/November 2011 (preceding the coordinated global central bank bailout) - 1-day and 2-day drops in stocks the biggest in 19 months, Gold and Silver's second largest 1-day drop in 20 months, investment-grade and high-yield credit's worst 1-day and 2-day widening in 19 months, EM currencies (e.g. MXN) worst day in 19 months, Copper's worst day in 19 months, and the heaviest volume day in S&P futures in 20 months. While stocks closed at the lows of the day, Treasuries did see some buying come in the last hour or so - which appears to be safe-haven scrambling - and EUR weakness (post IMF) was trumped by JPY strength (unwinds) to drag the USD off its highs into the close.
[6]
Stocks are broadly down 3.5% to 4% since the FOMC...
[7]
With the S&P futures down 4.4% from yesterday's highs and having their highest volume in 20 months...
[8]
and housing names the hardest hit (even with today's positive news - since good is now ultimately bad)...
[9]
While stocks (above) closed at their lows, Treasuries were modestly bid in the last hour or so (as the plethora of bond gurus emerged to explain how the Fed will never leave)...
[10]
FX markets were once again on fire (though EM more so than the majors)...
[11]
Gold, Silver, and Copper (China!!) were destroyed... ending at their lows...
[12]
VIX broke above 21% today - up over 4 vols - its highest close of the year...
[13]
We would imagine more than a few margin clerks will be busy tonight...
[14]
(h/t @Not_Jim_Cramer)
Charts: Bloomberg and Capital Context
Bonus Chart: Bonds have 'collapsed' to equities' exuberance but without the support of the Fed - will they both revert (as they always have) to macro-fundamentals?
[15]
Bonus Bonus Chart: Where's The Yield Maria?
[16]