Only one thing seemed appropriate...
* * *
The mainstream media really nailed this move in the past month (here [5] and here [6])
[7]
[8]
- China's worst week since July - closes at 5 month lows
- Global Stocks' worst week since May 2012
- US Stocks' worst week in 4 years
- VIX's biggest weekly rise ever
- Crude's longest losing streak in 29 years
- Gold's best week since January
- 5Y TSY Yield's biggest absolute drop in 2 years
* * *
Did you get message Fed?
[9]
THE CLEAR MESSAGE FROM THE MARKETS IS - HIKE RATES AND YOU'RE DONE, GIVE US QE4 OR IT'S ALL OVER!!!
So let's start with stocks...
Bloodbathery... This was the worst week for global stocks (MSCI World) since May 2012
[10]
And the worst week for US equities since Nov 2011...
[11]
Futures show the pain started with China PMI, then dumped as Europe collapsed, then there was no help from the machines as gamma was so imbalanced...
[12]
Of course we saw The BoJ in da house to help squeeze stocks with some USDJPY crushing...but that only worked for the small caps (easiest to squeeze)... and then it all collapsed...
[13]
Putting these moves in context, the red lines show how long since the US Majors are unchanged...
[14]
Dow enters correction... this was the 9th largest point drop in the history of The Dow...
[15]
Financials and Energy were monkeyhammered this week (as both were completely decoupled from their credit markets)...
[16]
Financials crash...
[17]
And Surprise!!! Energy stocks collapse to credit...
[18]
Who could have seen that coming?
No brainer: short energy stocks, long credit pic.twitter.com/rC05G32OkS [19]
— zerohedge (@zerohedge) August 11, 2015 [20]
Carnage in AAPL slammed the Nasdaq...
[21]
Since QE3, all but The Nasdaq are now red... (and Nasdaq is collapsing fast)...Trannies down almost 10% since the end of QE3!!
[22]
VIX exploded this week with the biggest jump ever...
[23]
And The VIX ETF saw its biggest 2-day rise since 2011 (no wonder with 61.7mm shares short agaionst just 60.6mm outstanding)
[24]
As VIX catches up to credit risk...
[25]
and before we leave stock-land, her is perhaps the 'spookiest' chart... a Fibonnaci 61.8% extension of the 2007 high to 2009 lows 'nails the top' for now... (h/t @allstarcharts )
[26]
* * *
OK... so let's look at bond-land. Treasury yields collapsed this week with 10Y nearing a 1 handle... 5y yield down over 17bps is the bigest absolute drop since Sept 2013
[27]
Leaving the entire bond complex lower in yield on the year...
[28]
And stocks finally caught down to credot's reality...
[29]
FX Markets have seen some serious carnage this week...
The US Dollar index futures contract was down 2.7% on the week - its biggest drop since June 2013...
EM FX was a disaster...
[30]
Finally - the commodity space...
Very mixed picture with PMs holding gains (despite Silver's slam today) as industrial commodities were clobbered...
[31]
Bloomberg's Commodity Index is at its lowest since 1999...
[32]
Crude oil fell to a 3 handle -
[33]
Dropping for 8 straight weeks for the first time since 1986...
[34]
Note that gold reversed today early on after touching its 100DMA... and silver revsed today to its 50DMA
[35]
And finally, because we suspect the mainstream media will be looking for an excuse to explain all this carnage... here is the culprit...
This mornings culprit for the nasty sell-off pic.twitter.com/OYbBFQyYvI [36]
— Stalingrad & Poorski (@Stalingrad_Poor) August 21, 2015 [37]
Charts: Bloomberg
Bonus Chart: Today...
@BarbarianCap [38] not what I'm seeing pic.twitter.com/YkvyBArsgX [39]
— 3:30 Ramp Capital™ (@RampCapitalLLC) August 21, 2015 [40]