Stocks Wipe Out Post-Fed Gains As Deutsche Dread Batters US Banks

"Contained"...

 

VIX spiked to 14.5, its 100-day moving average, ahead of tonight's debate...

 

As Deutsche Bank contagion concerns...

 

Spark spike in European bank counterparty risk...

 

and Germany CDS is starting to show signs of concern...

 

Sent US bank stocks tumbling... (among the worst days for Financials since Brexit...

 

But financials have a long way to catch down to the yield curve...

 

Goldman and JPMorgan weighed on The Dow but S&P and Nasdaq also tumbled to pre-Fed levels..

 

Dow closed below its 100DMA...

 

But Post-fed Bonds & Bullion are stil green...

 

TWTR spiked above 2015 close levels, crushing shorts, on DIS rumors...

 

Bonds extended their post-Fed gains with the entire curve dropping 2-4bps today (small flattening)...10Y yield broke back below 1.60%. 5th streight down down in yields.

 

The USD Index slipped lower on Yen strength (helped by CAD weakness - despite oil gains)...

 

Gold was flat on the day and Silver slipped BUT crude kneejerked higher on Saudi cut hopes...

 

The machines ramped oil on Saudi headlines to take out stops from Iran headlines... oil faded aftwer NYMEX close...

 

Notably, heavy protection buying is evident in the crude complex...

 

Charts: Bloomberg

Bonus Chart: Treasury positioning remains extremely short...

Bonus Bonus Chart: "Contained"

 

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