Americans Stunned As Stocks... Fall

Seemed appropriate...

As Ryan Detrick (@RyanDetrick) noted, The Dow is up nine straight days. Going back 20 years this has happened only twice. Both times it was up day 10... So today is a historic #fail... Leaving Dow Futs at crucial support... with VIX surging back to a shocking 13 level before it was quickly squelched into the close... "off the lows"

 

Stocks had their worst day since Brexit today... Trannies were clubbed like a baby-seal out of the gate and no bounce (SouthWest)...and when Europe closed things got worse...

 

Leaving The Dow, S&P, and Small Caps unchanged-ish for the day...

 

Of course this is merely "the pause that refreshes" or the "healthy correction" that leads to the next leg higher. Although we note that the S&P is at record richness to The Fed balance sheet...

 

But global central banks saved the world (for US stock investors) - but note the last 2 weeks have seen central bank balance sheets shrink in USD terms...

And S&P valuations are at 14 year highs... "it's probably nothing"

 

Elon Musk is losing his touch...

 

Bank stocks have recovered mightily off the Brexit lows BUT...Citi and JPM are unch from Brexit

 

But financials remain full of exuberance relative to the yield curve...

 

Energy stocks began to catch down to crude..

 

Post-Brexit, Gold remains the biggest winner and bonds overtook stocks again today...

 

And off the Brexit bounce..

 

The decoupling continues in credit land as HY spreads are nowhere near record lows as stocks push ever higher...(note the break began when The Fed started to taper QE3)...

 

Treasury yields tumbled from the US open... 4th day in a row of Treasury selling into the US open, but notable bond buying after Draghi disappointed... the belly of the curve is at Turkey coup low yields...

 

FX markets were volatile with the USD index drifting lower amid Kuroda and Draghi comments...

 

As USDJPY dropped 1% -  the most in a month... (after Kuroda spoiled the helicopter money party)

 

Commodities were mixed today with PMs rallying after Draghi and Kuroda disappointed, crude weaker and copper flat to modestly higher...

 

Slamming WTI to 3-month lows...

 

As 2015 analogs move to top of mind...

 

And finally, yesterday's PM plunge was entirely reversed today...

 

Charts: Bloomberg

Bonus Chart: Fool me once, shame on you; Fool me twice, shame on me, Fool me a third time, I must be a bloody idiot...