Tech Wrecks, Credit Crashes, & VIX Goes Vertical - "Probably Nothing"

"Pause that refreshes"

 

Well that escalated quickly... From the open on Tuesday, the "fire and fury" dump, the ubiquitous BTFD ramp dead cat bounce... and today's flush...

"Not Off The Lows"

 

Summary:

  • Nasdaq, Dow, S&P, Small Caps worst day in 3 months (to one month lows)
  • S&P Tech Sector worst day in 2 months
  • Financials worst day in 3 months
  • HYG (HY Bond) worst 3-day move in 5 months (to lowest since March)
  • VIX biggest 3-day spike since Aug 2015 China deval.
  • Gold's best 3-day rally in 3 months
  • Yuan biggest 3-day gain in 2 months

Year-to-Date, Small Caps and Trannies are not doing so hot...

 

FANG Stocks plunged over 2.5% - worst day in two months - erasing all the NFLX earnings gains...

 

S&P VIX pushed up to 16, smashing through its 200DMA...this will be the highest close since the election

 

Nasdaq broke and closed below its 50DMA...

 

Nasdaq VIX topped 19 - its highest since June...

 

XIV (inverse VIX ETF) plunged to its 100DMA...

 

Black & Blue Apron...

 

Credit markets have suddenly woken up with HY spreads blowing out by the most in 5 months...

 

With HY Corporate bond prices broke below their 200DMA...

 

Treasury yields tumbled - bond prices erased all the losses post-payrolls...

 

With 30Y back to its lowest since June...

 

The Dollar Index slide for much of the day but accelerated lower after Trump's late-day comments...5th day in a row that the dollar has rallied overnight and into the European close and dumped after...

 

Yuan and Yen strength are dominating the downward pressure on the dollar...

 

Gold continued to surge - hitting two-month highs...

 

And WTI was clubbed on OPEC production headlines and chatter on Russian output increases...after the machines had run the $50 stops...

 

Stock markets starting to catch down to reality?

 

Long way to go yet...

Comments

Overleveraged_… Thu, 08/10/2017 - 16:04 Permalink

Well I don't know what to say except this is just another bump in the road on the way to S&P 3000 by year end. For the longest time bearish investors have been calling the top and being wrong. Why would this time be different? This is the new Economy. The new Paradigm. Nothing has changed.Janet Yellen still has our back. Donald Trump is allowing this drop to happen. This is all a typical plot to crush more bears and short sellers. Folks, I'm here to tell you that I'm staying on track. I am holding on tightly to my 3x Long Leveraged S&P 500 positions. Infact, I may be buying more tomorrow morning. I am still up massively on the year and think this is absolutely the position to hold.Central banks are still injecting, they can change their mind in an instant. This interview its "oh, I think we'll hold off on the asset purchases" then next meeting it's "well upon further review we will now have to do MORE asset purchases." It's all a big game at this point, and those who have advantage at the game want the Stock Market to rise continuously. So that is what will happen.You think a "crash" is coming up? You think this is really the start of the "Big One?" LMAO. Don't get me started. If necessary, the powers that be can and will use the nuclear option to keep the stock market at all time highs. In fact, go ahead. Short the market. I dare you. You already know what's going to happen. I've tried it,  and it never ends well. Tomorrow will probably see us come right back to to normal levels. Shorters will be squashed like bugs per usual.They can clear up the NK drama in no time. Yellen can and will get right back on the mic and set this market straight again. S&P 500 at 3000 by year end, and 4500 by Q1 2019.

OverTheHedge D.r. Funk Thu, 08/10/2017 - 17:00 Permalink

I fully agree to your logic, but it presupposes that assets are owned by private market participants. Given that the SNB is on a buying spree, and the plunge protection team is an actual thing, it is theoretically possible that markets may never fall again.I am still working on the theory that significant inflation (currency depreciation) is the only way out, and significant asset appreciation is part of that. Markets up 50% would not be out of the question, except it would really mean $ down by a proportionate amount.

In reply to by D.r. Funk

D.r. Funk T.Gracchus Thu, 08/10/2017 - 16:40 Permalink

It's not faith. You realize it could be a "madeup" assertion, right? You realize it may not actually really be an authenticly positioned trader? (Which I have contended highly, as such)How do you so many of you Not question information being presented to you? UnrealAt least, cogitate the scenario that it is a henchman, of those in charge (or ptb) giving you pleasantries on the surface (lol). You know like purposefully trying to keep you playing the game?...

In reply to by T.Gracchus

awarebulldog Overleveraged_… Thu, 08/10/2017 - 16:37 Permalink

You are either right or your are wrong.  It really has to be one or the other and if your are wrong sooner is better.  I am still uncertain what it will be.  I think it should go back to where price valuations can be meaured and we can make informed decisions and buy things we know have value.  The reason I think this is important is for millenials and the younger generations.  If the inflated stock market goes on for a longer time the younger people are having to pay huge prices and get screwed some time in the future when it ever reverts.  Thier 401Ks are stuck with this same stock market.  Or, you might be right and the CBs keep it inflated forever and that is the new normal.  ZH has shown the economy hard data is not doing well and the rediculous stock prices do not reflect the real situation.  My prefernce would be to get back to rational prices now and get it over with but I can see it going either way.  

In reply to by Overleveraged_…

trgfunds Overleveraged_… Thu, 08/10/2017 - 16:54 Permalink

This whole thing is staged to harvest more capital. Pre-planned, scripted. I also have a serious issue with the "Pentagon releases plans for pre-emptive strike" bullshit. None of this passes the smell test. And the herd just EATS IT UP. There are so many degenerate low IQ cave men just buying into the "USA good guy / Norko bad guy" mainstream it isn't even funny, and the best part is, the whole god damned thing is manufactured. They're all repeating something they heard on the TV! The new economy is: Seed the masses with fake info, get them to react to fake info, scare them into a corner and rob them. There is nothing real left. And this is the fear game is the total mechanism by which they do it. They don't need a war. They need the constant threat of a war. They don't need a depression, they need the constant threat of a depression, etc. etc. There is actually some evidence to suggest that North Korea is a fake state used specifically for this purpose. Kim Jong Un went to heavy duty western intelligence agency schools in Switzerland with CIA and MI6 kids. Kim Jong Un uses an iPhone. I mean wtf. Talk about THAT for a second. Not the first time that a major power set up an frenemy to preserve their status. This is old hat shit guys.

In reply to by Overleveraged_…

creeko trgfunds Thu, 08/10/2017 - 21:21 Permalink

You deserve an award for the clarity and insight you presented in one paragraph.  It should be copied and pasted it into every ZH article about NK and war and nukes and so on and so on.  Blah blah blah... all fake shit, all the time.  And yes, I'm starting to think that economic collapse is also fake shit.  Maybe the game is up for THEM, but not for anyone else.  Could be.

In reply to by trgfunds

RawPawg Thu, 08/10/2017 - 16:07 Permalink

When the days of not being able to see ZH per Internet OutageI'll still have Memories of the first Time I saw the "Deer In the Headlights" memeit will give me reasoning and hope while tilling the backyard gardens

Clock Crasher Thu, 08/10/2017 - 16:12 Permalink

October 2014 I thought the top was inAugust 2015 I thought the top was inFebruary 2016 I thought the top was inToday in 2017 I'm not so sure the top is inAs soon as we come down to the 45% uptrending slope line we should absolutely explode higher for another decade. The 1982 bull market didn't really stop until 2001.Gold/Silver/Vix/Bitcoin, for what its worth -Give em hell!

Clock Crasher SheepRevolution Thu, 08/10/2017 - 16:29 Permalink

Nah, I am in maximum capitulation mode.  I'm starting to think a stock market decline is a matter of national security.  If anything, higher stock prices are better for the gold bull thesis if you believe in Dow:Gold normalization. The stock market would need to 1- decline 25% or more then 2- Rally but fail to come close to its former all time high then 3- take out the previous declines on massive volume.. and no ZIRP no QE4.Chances of that happening are... well I'll let you calculate that.

In reply to by SheepRevolution

QE4MeASAP Thu, 08/10/2017 - 16:08 Permalink

Fucking A, "not off the lows!"  How many times did we see "off the lows" yesterday?Bomb the living bejeepers out of those forces.  Fuck'em up MacArthur style.  As long as we all die, who really cares?

LawsofPhysics Thu, 08/10/2017 - 16:12 Permalink

If you want to see something funny, pretty much the last weak ass pulse of real trading in the market, chart the FAZ from from inception to today to view the BERNANKE BOMB... Let me know when to BTFD!! "Full Faith and Credit"