The last 2 weeks in markets...
And to all those who took Cramer's advice to buy the dips...
Some big moves this week...
- Dow Industrials lowest weekly close since April 2014
- Dow Transports lowest weekly close since May 2014
- S&P 500 lowest weekly close since Oct 2014's Bullard lows
- Nikkei dumped over 7% this week - worst week since April 2014
- Utilities collapsed 5.1% this week - worst week since March 2009
- Financials lowest weekly close since Oct 2014's Bullard lows
- Biotechs lowest weekly close since Feb 2015
- Investment Grade Corporate Bond Spreads worst since June 2013
- Treasury Curve (2s30s) flattened 6bps today - biggest drop in 2 weeks.
- JPY strengthened 2.4% on week against the USD - strongest week since August 2013 (up 4.5% in 3 weeks) - major carry unwind!
- AUD plunged 3.5% on week against the USD - worst week since January 2015 and worst 4-weeks since Oct 2014 - China proxy
So before we start, Japan was really ugly...
[15]
And some context for the US equity index drops...
[16]
With everything red year-to-date... (and since the end of QE3, only Nasdaq is clinging to the green)
[17]
A quiet Friday before Labor Day weekend provided no juice for momo ignition and apart from a brief algo-driven pop on payrolls, stocks were a one-way-street lower...until the late-day VIX-smash ramp which closed ugly...
[18]
And Futures show an ugly night turned even uglier...
[19]
On the week, evereything is red...
[20]
Dow Futures give us some context for the last 2 week's moves. Bounce dies at Fib61.8% retracement, breaks through 50% and makes lower high as today tested post Black-Monday lows...
[21]
FANG is FUBAR... (post FOMC Minutes)
[22]
Financials continues to get hammered (as investors rushed to the safety of Homebuilders this week!?!) - but the panic-buying in the last hour saved it from being a lot worse...
[23]
Utilities had their worst week since March 2009..
[24]
But financials have further to fall to catch up with counterparty risk...
[25]
Just as we saw lasty Friday, VIX was smashed lower in the last hour... which makes perfect sense given Monday is a holiday and China reopens after 3 days of being closed during extreme moves in EM FX and global equity markets...
[26]
After some VIX complex shenanigans midweek, SPY continues to coverge down to XIV (though the latter is also being squeezed to lows).
[27]
Since the FOMC Minutes, gold and the long bond are modest losers and stocks big losers...
[28]
Investment Grade Credit spreads rose 4bps this week, ending with the widest weekly close since June 2013
[29]
This is why it matters!! Bye Bye Buybacks
[30]
Thank to today's plunge, Treasury yields ended the week lower after China closed... Note that 2Y is unch today, 10Y -3.5bps, 30Y -4.5bps
[31]
with a dramatic 6bps 2s30s curve flattening on the day (post-payrolls)
[32]
The US Dollar ended the week unchanged against the majors... but that hid the stunning moves in JPY (USDJPY dropped 2.4% on the week - its worst since Auguist 2013) and AUD (-3.6% - biggest weekly drop in 8 months, worst 4-week drop in a year)...
[33]
Commodities on the week were a mixed bag with crude up on the week and copper notably lower overnight to negative. Gold & Silver modestly lower... The 8-10ET period remains insanely volatile...
[34]
Crude had a wild week as Monday and Tuesday's idiocy and noite today's pump'n'dump after rig counts unexpectedly declined...
[35]
And finally before everyone points out how crazy the bond yields are relative to stocks etc... and the 'economy' - perhaps it was stocks that were wrong all along!!
[36]
Charts: Bloomberg
Bonus Chart: Nikkei joins SHCOMP and SPX in the red for 2015...
[37]
Bonus Bonus Chart" "Just one wafer thin 25bps rate hike"
h/t @RudyHavenstein