Market Update: The Denial Unwind

That escalated quickly. Germany's DAX is now negative year-to-date (at 5-month lows), Copper is at 18-month lows, the bid for safety has driven 2Y Swiss rates under -10bps, their lowest in 3 months, and US equity markets are crumbling after yesterday's dead-cat-bounce. There was little to no pre-open ramp this morning, no EUR-levered pump, and VIX is not playing ball with the manipulators. Something changed; the denial is beginning to unwind. Gold and silver are modestly bid as we suspect physical demand bleeds back into paper. Maybe stocks are catching down to the 'WTF' reality (as we discussed here and here).