Early hope faded into middle-of-the-day-despair which was rescued (briefly) on a sea of JPY carry (which dragged the S&P all the way to VWAP) then crashed and burned on the shores of dismal reality into the close. USDJPY was in charge and 103 was the magic number that kept the S&P 500 from breaking its 50DMA (for now). The Nasdaq and Russell were ugly as Biotechs' early ripfest gave way. This is the biggest 2-day swing lower in the Nasdaq since Oct2011. Treasuries rallied modestly on the day (-2bps) as the USD weakened 0.25% led by EUR strength. Copper rallied from an overnight dump low but gold (~$1300), silver (~$20), and oil (~$100) all clustered around -0.5%. VIX tested up to 16 intraday but was rammed lower as the 330 ramp too early to hold and merely enabled VWAP sellers out... and we closed near the lows...
As we reminded everyone...
Problem with the 3:15pm frontrunning of the 3;30 pm ramp is it leaves nothing for the NYFed boys
— zerohedge (@zerohedge) April 7, 2014 [6]
USDJPY and stocks glued at the hip...
[7]
VIX was also banged at around 230ET but lost contact...
[8]
The ramp efforts made the S&P 500 rise to VWAP and that was that ...
[9]
And rescued it from the 50DMA (green)...
[10]
The S&P 500 oscillated around unchanged for the year with the Dow, Nasdaq and Russell all notably red...
[11]
Utilities are up around 9% YTD as all the broad QE/growth sectors pulled back to unch...
[12]
The Nasdaq has plunged over 5% from Friday's highs - its biggest 2-day swing since oct 2011
[13]
Biotechs dumped, pumped, dumped and VWAP bounced as the 200DMA ($132 on Bioecth ETF) was crucial...
[14]
BTFD?
- Biotechs -24% (at 200DMA)
- NFLX -27% (at 200DMA)
- TWTR -43% (below every moving average, near all-time lows)
- FB -24% (well below 200DMA)
- P -33% (well below 200DMA)
- TSLA -22% (below 50DMA)
Charts: Bloomberg
Bonus Chart: The smart money is leaving the building in a hurry...
[15]