Markets Turmoiled As 5th Hindenburg Looms

Summing today up in 7 seconds...

 

 

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5th Hindenburg Omen in the last 6 days... Breadth todasy was horrible...

 

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Wherever you look today there was dramatic moves in markets - Treasury yields plunged, credit spreads blew wider (especially HY and more especially energy), VIX jumped notably higher, USDJPY collapsed, gold and silver surged, oil rallied modestly...

But then - shortly after Europe closed... someone (cough BoJ cough) decided to catch USDJPY at 117.95 and lift it miraculously 170 pips to save risk assets from a serious day...

 

 

Mission NOT!! Accomplished...

The entire equity complex ripped higher led by "most shorted" stocks being squeezed and driving small caps to a big day... the Nasdaq avoids its first 2-day losing streak since the Bullard lows. But despite the best efforts the S&P could not hold green

 

Energy stocks were today's best performers...

 

Despite the panic-buying v-shaped recovery - on par with the bounce at the Bullard lows, stocks remain red post-Payrolls...

 

Volume faded away on the upswing as one would expect...

 

Notably while VIX helped it did not ramp like stocks...

 

Treasury yields bounced but 30Y remains down 9bps on the week, flattening significantly...

 

Crushing the yield curve to iots flattest since 2009

 

The USD slid for the 2nd day in a row... but bounced hard after Europe closed...

 

But gold and silver surged (and did not lose much as everything ripped) and oil gained modestly...

 

 

While the broad HY market is indeed widening, the following chart should give some context (albeit comparing a CDS spread to an OAS is not perfect) on just how totally screwed the energy sector is...

 

Charts: Bloomberg

Bonus Chart: Who Do You Believe?