Fed Hike Sparks Biggest Selloff Since Election

This seemed an appropriate place to start... Make sense right?

 

Which made us think this...

 

So, the market's reaction post-Yellen... (banks were bid, puked, and then ramped)

 

Nasdaq almost made it back to unchanged on the ramp...Small Caps and Trannies slammed hardest but this was the market's worst day since October 11th.

 

Small Caps and Trannies have been notably ugly the last few days...

 

Dow 20,000 was on the cards - everyone expected it... but we stalled 35 points shy of it, before tumbling...but then there was the panic bid on JPY carry which ultimately failed...

 

Seems like a big Yen-arb correlation catch up...

 

Also, as we noted earlier, VIX and stocks had been rising together into this...

 

And did again this morning...before chaos was unleashed by The Fed...

 

The biggest reaction was a surge back to the upper end of the recent range in the Dollar Index...(at 14 year highs)

 

Jamming Yuan weaker...

 

And crushing JPY...back above 117.00 for the first time since Feb 8th and EURUSD below 1.05 - lowest since March 2015...

 

Treasury yields spiked across the curve but 30Y notably outperformed, flattenin the curve by 9bps on the day...

 

Crushing the yield curve to 3mo lows...

 

Crude plunged to a $50 handle...

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Finally, let's just remember what happened last time The Fed hiked rates on the Wednesday before a Friday Quad-Witch...

 

Everything was awesome before...

 

Bonds rallied...

 

And crude tumbled...