For some of the major US equity indices today's plunge was the worst day since August 27th.
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All indices are now negative year-to-date once again as the outperforming Dow Transports were smacked over 1.8% from its intraday highs. NASDAQ once again touched green year-to-date early on in the day, then tumbled aggressively. Some of the best post-Taper performing sectors were slammed hard today with builders, financials, and discretionary spanked. USDJPY 103 was defended heavily but stocks had already lost any connection as correlations broke rather notably. As we noted earlier, short-term bills were in heavy demand (and yields turned negative); Treasury notes and bonds rallied 3-4bps. Early weakness in gold and silver were rapidly dismissed with as PMs surged to fresh one-month highs ($1255 gold) and 2-month highs ($20.47 silver). VIX, after dropping below 12% early on smashed higher to close at 13.6% (following Friday's extreme steep close).
Whether this is all Lockhart's fault is questionable - as it seems now that Friday's late ramp was merely the chance for the big boys to exit on the piss poor employment data... it's definitely time for the deer!
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Today's equity market action saws 3 shifts - US open rally, EU Close turning point, Lockhart downtrend...
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As Stocks and JPY crosses lost their correlation (103 USDJPY was defended aggressively - like 104 Friday)...
Post-Taper, equity sectors have massively retraced...
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As year-to-date equity indices have rapidly deteriorated...
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VIX dropped back below 12% briefly before being banged back higher...
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It seems bonds have been on this from the beginning of the year... and today's strength merely extended Friday's gains (drops in yields)...
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Gold and Silver had their normal slamdown start to the day but by the close were in heavy demand as safe havens were sought...
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Stocks caught down to credit weakness...
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Charts: Bloomberg
Bonus Chart: Nikkei is down 1000 points from its 2013 close highs...
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Bonus Bonus Chart: Why you should be worried about USDJPY (not earnings)... (h/t @Not_Jim_Cramer)
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