High-Growth Hope Stocks Hammered

30Y yields are now over 10bps below post-Yellen spike highs as growth-hope-driven US equities were monkey-hammered in another pump-and-dump deja vu day - with one difference - no late-day bounce to provide solace for the bulls. The Nasdaq and Russell 2000 are down over 3.5% from Yellen; Biotechs broke to new lows (down over 14% and below the 100DMA); momo names were slammed (FB) as King IPO's and lost over 15% on the day. The Nasdaq and Russell have joined the Dow in the red year-to-date, S&P and Trannies barely positive. The USD lost ground on the day after early strength. Gold, silver, and copper fell notably. VIX jumped from 2-month lows to back over 15%. USDJPY was sin charge all day - and broke below the key 102 level into the close.

Reasons? take your pick...

  • Ugly durable goods data - bad news is good news?
  • Good Markit PMI Services data - good news is bad news?
  • French jobseekers record high
  • 5Y auction big demand

Or simply put - carry unwinds on the heels of China's weakness


Dragging everything to unch YTD (or worse)


30Y yields dropped back to near 2014 lows back to July 2013 levels...

with 10s and 30s trading back under pre-Yellen levels



Biotechs battered


Indices slammed post Yellen led by the high-beta names...


As momos are crushed...


Gold, silver, and copper sold in US session...(again)


All sectors are now red post-Yellen (including the new leaders that everyone cheered - financials)


As Financial stocks tumble back to credit...


Charts: Bloomberg

Bonus Chart: The King is dead...


No comments yet! Be the first to add yours.