Swissnado Stuns Stocks, Bonds & Bullion Bid

Lagarde seemed to admit there is a problem... Overheard at The SNB building earlier...

 

 

And as a bonus, we thought this was appropriate...

 

Stocks initially jerked higher on the SNB news (as didbond yields and crude oil) as the removal of the EURCHF ceiling prompted belief in ECB QE being imminent... but that quickly reverted - not helped by Christine Lagarde's clear discontent with the SNB decision and investors realized that for the first time in years, a central bank surprised traders...

 

Stocks are down 5 days in a row (Dow hasn't seen that since Jim Bullard saved the world in Mid-October)

 

And the S&P 500 hasn't fallen 5 days in a row since Dec 2013... and closed below its 100DMA

 

S&P could not get back above 2,000...

 

Quite a ride the last few days... Year-to-date - Trannies and Small Caps losing

 

Futures show today's swing better... "NOT OFF THE LOWS"

 

as stocks slump back to pre-FOMC levels...

 

Homebuilders were hammered today again as hope from Monday has been crushed...

 

Financials continue to get whacked - playing catch down to credit... US Majors Credit risk surges to 10 months highs

 

Energy credit spreads hit a new record high today (1056bps) and stocks cauight down to it...

 

Treasury yields collapsed 8-12bps today with 10Y below 1.75% and 30Y at 2.38%!!! Not closing off the lows!!

 

Stocks just keep BTFD-ing and then dumping back to bonds' reality...

 

For fun - here is the Swissy move in context this week... 

 

Note the USD strengthened significantly on the day as EUR collapsed (despite the CHF strength)

 

Despite the USD strength, gold surged...

 

And WTI Crude totally roundtripped both the OPEX ramp and the SNB ramp for a massive +/-10% swing...

 

Charts: Bloomberg