Just because...
The epicenter of today's earthquake was Biotech and Corporate Bonds...
Biotechs were bloodbath'd - IBB dropped almost 8% today alone - the biggest drop since August 2011 - testing back to Black Monday lows and now unchanged since October 2014...
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This is the longest losing streak for Biotechs since Lehman
Investors should not worry though...
IBB Update pic.twitter.com/S6jQOysMiW [13]
— Stalingrad & Poorski (@Stalingrad_Poor) September 28, 2015 [14]
High yield bond prices have fallen for 12 of the last 13 days and today's decline was the biggest daily drop since Nov 2011, breaking towards Nov 2011 spike lows...
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In context - this means HYG is unchanged since Lehman!!
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All the major US Equity Indices are at or below Black Monday Lows...
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Some context in The Dow futures...
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So what did the major equity indices do?
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Cash indices show Small Caps and Nasdaq were the biggest losers...
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With everything now red post-QE3...
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The decoupling between XIV (inverse VIX ETF) and SPY (S&P ETF) has begun to rapidly converge...
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Financials dropped 2% on the day (with homebuilders, materials, energy and healthcare all battered)...
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More worryingly, US financials made new 2015 lows (below Black Monday lows) as they continue to catch down to credit risk (as Glancore counterparty risks rise)...
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There were some other total collapses in stocks that are widely held by hedge funds today...
SUNE crashed another 17% to 2 year lows... (breaking the Black Monday Lows)
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Not so valiant Valeant after getting a pricing subpoena...
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And of course - Glencore...
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Treasury yields started the day off higher but as data, and fed speak hit along with US Open selling pressure, safe-haven flows flooded into equities... 30Y -9bps is the biggest absolute drop since early July... NOTE: 2s30s has flattened to 4 week lows
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High yield bond spreads crashed wider today (after the CDX roll) - this was the worst day in at least a year for CDX HY...
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as Energy credit risk spiked to near record highs...
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The USDollar was sold after the US Open - having been bid through the Asia, European day...
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Commodities were mugged all day as we suspect commodity group liquidations and counterparty risk reductions weighed on the whole complex...
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Silver had its worst day in a month...6 waterfalls...
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Charts: Bloomberg
Bonus Chart: All The FedSpeak has confused markets even more with 2015 rate hike odds now at record lows...
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Bonus Bonus Chart: It's all priced in...
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