Stocks Suffer Worst Week Of Year Amid Biotech Bloodbath, Commodity Carnage, & Bond Buying

This seemed appropriate...

But "everything was awesome"?

  • Russell 2000 -3.1% - worst week since Oct 2014 (Bullard)
  • Dow -2.8% - worst week since Dec 2014
  • S&P -2.1% - worst week since Jan 2015
  • Trannies -2.8% - worst week since Mar 2015
  • Nasdaq -2.2% - worst week since Mar 2015

 

Who is to blame for all this?

Leaving The Dow comfortably red year-to-date...

 

This is notable.. VIX was pressed notably lower into the close and stocks went nowhere - either Kevin Henry just lost his mojo OR traders are unwinding hedges and underlying exposures at the same time.. in other words - derisking in size!

 

The Nasdaq tumbled to its 50DMA, Small Caps broke below 50DMA & 100DMA, pressing 200DMA, S&P broke its 50DM And 100DMA, pushing towards its 200DMA, Dow smashed below its 200DMA, Trannies back near 9 month lows.

Ugly day...

 

AMZN retraced over half its overnight gains...

 

Biotechs... worst week/day in 3 months

 

Buggered... 50 Biotech names (1/3rd) dropped over 4%

 

After Biogen was battered... down 22% (worst day since July 2008)

 

Treasury yields plunged on the week (except 2Y which inched higher)... 30Y yield's biggest drop since March

 

The massive flattening in the yield curve (2s30s -27bps) is the biggest 2-week flattening since Sept 2011 (and biggest weekly drop since The Taper Tantrum)...

 

The Dollar has been relatively quiet for the last 3 days as AUD plunges and EUR strengthens...

 

Commodities were whacked all week but Friday afternoon saw gold & silver bid as Crude tumbled to 4-month lows...

 

Crude crashes for 4th week in a row... (down 20%)

 

Commodity carnage... year-to-date...(except higher gas prices!!)

 

On the week: Bonds good, Stocks bad, Gold ugly...

 

Charts: Bloomberg