Well that escalated quickly...
The big story of the day - as long as you don't watch CNBC - was the bloodbath in currencies. China's devaluation to 4 year lows overnight...
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Appears to have acccelerated a shift away from the USDollar across all the majors... (biggest USD drop ex-ECB since the post-China devaluation collapse) - the only thing saving the USD modestly was weakness in commodity currencies (AUD and CAD)...
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Slamming the USD to 6-week lows... with the biggest 5-day drop since China devalued
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Some context for that move are evident in the world's most used carry currency - USDJPY crashed...
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And in EURUSD, which had its biggest (ex ECB) jump since the China devaluation....
In case you were wondering what "fundamentals" were weighing on stocks...
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Focusing on stocks, futures provides the cleearest view of the last few days/weeks...
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On the day, it was extremely volatile... with stocks ending up back to pre-payrolls levels...
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Nasdaq was the worst on the day... Dow was saved by DuPont which added 50 points...
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S&P broke below its 50- and 200-DMA...
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As FANGs faded...
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With Trannies worst on the week...
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Leaving all the major indices back in the red for 2015 (apart from Nasdaq)...
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Since The ECB let the world down (and implicitly left The Fed set to remove up to $800 bn of liquidity next week)... Gold and EUR are the winners, stocks and Crude the losers...
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Stocks played nicely with crude all day...
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What happens next?
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Treasury yields were mixed today with the short-end rallying, long-end flat (dragging yields below pre-ECB levels...
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Commodities ignored the USD dump as once again the 8ET to 12ET period saw dramatic volatility across all...
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The post-DOE data ramp perfectly tagged $39 stops and then dumped back below $37 finding support there again...
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Charts: Bloomberg
Bonus Chart: What happens next?
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