Market Massacre: Worst Ever First Week Of Trading

What better analogy than this...

 

This was the worst first week of the year for US equities... ever!

Dow... (even worse than 2008)

 

S&P...

 

Europe was a disaster...

 

And epic for China...

 

And while only Trannies are in a bear market (down 20%) in the US, these 7 developed world markets are already there...(h/t SocGen's Andrew Laphthorne)

 

*  *  *

So let's look at the week in stocks...

It was all looking so awesome last night...

 

Futures show the swings better (with China weakness as an early week driver and US as late-week driver)...

 

Small Caps and Trannies are down around 7% this week, S&P best but still down over 5% (and down 6 of the last 7 days)

  • S&P down 5.3% - worst week since Black Monday
  • Dow Industrials down 5.6% - worst week since Black Monday
  • Small Caps down 6.9% - worst week since Nov 2011 - Russell 2000 lowest close since since Oct 2014
  • Dow Transports down 7.1% - worst week since Sept 2011 - lowest close since Nov 2013

The Dow is down 1400 points in a week (from 17,660 to 16,250)

 

Utes managed to end the week unchanged but Homebuilders collapsed... Financials and Materials were next worst...

  • Financials down 6.6% - worst week since May 2012
  • Materials down 7.4% - worst week since Sept 2011
  • Homebuilders down 8.6% - worst since Aug 2011

VIX broke back above 25... (VIX up 60% in 2 weeks - biggest jump since Black Monday)

 

What did Janet do? Post Fed rate-hike - S&P down 6.5%, Gold up 3%, 30Y Bonds up 1.6%

 

 

Stocks are about half-way there...

 

Since the end of QE3, Trannies are down 20% and only Nasdaq is holding any gains...

 

The FANTAsy stocks are all red since the end of 2015 (with TSLA and AMZN worst)...

 

Energy Stocks finally woke up to reality in the credit underlying commodity...

 

US financials have started to plunge back to credit/yield curve reality...

 

With MS and GS back below Tangible Book Value for first time in 2 years...

 

 

 

Away from stocks...

 

Treasury Yields tumbled, closing at their low yields of the year with the belly of the curve outperforming... 10Y yields dropped 14bps this week - the biggest drop in 3 months.

 

FX markets were volatile but by the end The Dollar Index closed unchanged (against the majors)...

 

But the USDollar surged 1.5% against Asian FX - its best week in 5 months... (Asian FX is its weakest since April 2009 against the USD)

 

But AUDJPY - probably the world's most-levered carry trades - collapsed 6.7% this week!! It's worst week since May 2010...

 

Commodities were very mixed this week...

 

Gold rallied 4% this week - its best 'first week of the year' since 2008... (best week in 5 months) - breaking 2 key technical levels...

 

Crude down 5 days in a row touching a $32 handle at the lows... biggest weekly drop since Nov 2014

In Summary - Sell The Dips!

See you all Sunday night!

Charts: Bloomberg

Bonus Chart: Investors seeking safety are greatly rotating from Triple AAA stocks to Gold stocks (h/t SocGen's Andrew Laphthorne)

 

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