While attention was focused on the #winning (TWTR) and #failing (NASDAQ and TSLA and so on)... the fact is that the S&P 500 futures market saw its largest collapse from high to low intraday since June 24th. While the told-you-so dance seems so inappropriate, equity markets' dump - seemingly triggered by more than one levered JPY carry trader getting a tap on the shoulder after Draghi's surprise - merely catches down to credit market's lack of exberance for the last 2 weeks (though there is still more room to drop). Stocks are at 12-day lows by the close with very litle BFTATH'ers stepping in as VIX broke back above 14.00% (highest close in over 3 weeks). FX markets were insanely volatile with early USD strength obliterated by JPY and EUR strength in the afternoon. Commodities slid lower on the day and bonds rallied - with 30Y outperformance unwinding some of the week's steepening. Stocks closed on their lows with the best volume in a month.
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While we realize the irony of pulling out the deer on a day when the market is down barely over 1%, this is what happens when a deranged Princeton academic is let loose and left in control of the capital markets...
Trannies are the most off their highs but NASDAQ is now the worst performer off the debt-ceiling lows...
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And Homebuilders and Financials are underperforming (though discretionary was ugly today)...
Equity markets playing catch down to credit...
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FX markets were bananas...
and Treasuries saw 30Y outperforming - flattening much of the week's steepening...
and as an example of the disaster in momo - TSLA is down almost 30% from its highs...
Well..
Charts: Bloomberg
Bonus Chart: TWTR Closees at all-time low...
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