It began with JPY technicals and peripheral European weakness then US Retail earnings started it, Plosser extended it (rate hike sooner), then Dudley slammed it (terminal rate lower than normal)... Turbo Tuesday became Terrible Tuesday - only saved by the apparent BTFWWIII effort after Russia test-fired ICBMs. This was still the worst Tuesday for the Dow in 7 months. Despite the best effort of someone to lift VIX amid the turmoil and rescue stocks, things ended red and ugly for the Russell. USDJPY clung keenly to its 200DMA around 101.25 but stocks were manacled to bond yields on the day. Stocks crumbled back to credit markets un-exuberance from yesterday. Gold and silver recovered from an early slamdown to close higher as the USD trod water... and volume was above average.
Correction: pic.twitter.com/iqepXRkXNM [8]
— Not Jim Cramer (@Not_Jim_Cramer) May 20, 2014 [9]
When everyone knows...
[10]
Turbo Tuesday becomes Terrible Tuesday... Worst Dow Tuesday in 7 months
[11]
The day in stocks...
[12]
Stocks tracked bonds
[13]
and disconnected from USDJPY when it stabilized around its 200DMA
[14]
Yesterday's short squeeze unwound in a hurry...
[15]
Stocks cracked back down to credit's reality...
[16]
VIX tried its best to save the day...
[17]
As someone decided to sell a metric shit-ton of VXX just after Russia launched its ICBM..
[18]
Charts: Bloomberg
Bonus Chart: VIX futures and credit markets are not in agreement...
[19]