Tax Tantrum Sparks Stock Slump As Credit Crash Continues

To the middle class...

 

Before we start, don't forget the chaos in Japan overnight...

 

Gold remains the biggest winner in the post-Saudi-chaos world...

 

The Dow's 7-day win streak is broken... Trannies were worst

 

Trannies are now down 6 days in a row, and all indices are red on the week...

 

VIX pushed higher on the Senate tax bill (topping 12), but soon enough the army of vol-selling-machines stepped in and righted the ship...

 

'High Tax' Companies dropped early but rebounded as details came out....

 

Big tumble in FANG stocks at the open but that dip was bid...

 

Financials continued to underperform (even with modest steepening of the curve today)...

 

And homebuilders rallied on the normalization of interest deduction...

 

As stocks catch down to credit's weakness...

 

High Yield Bond prices (HYG) are at 8 month lows...

 

VIX has started to creep higher but has further to go to fit with credit risk...

 

 

Mixed picture in bond land today with the short-end modestly bid (yields lower) and long-end the opposite... (30Y and 10Y remain lower on the week)...

 

The Dollar Index tumbled to its lowest since Oct 26th...

 

Bitcoin slid on the day... as traders rotated back to ETH as the hopes of a fork dividend fade.

 

Copper remains lower on the week - following hotter than expected China inflation - and gold and crude managed modest gains on the day...

Comments

Keltner Channel Surf Farmer Joe in … Thu, 11/09/2017 - 16:59 Permalink

When bored in the past on late August trading days, I used to think of possible alternates for the BTFD acronym:Bulls Test Fed’s DeterminationBury The Freaking DaytradersBuy To Frustrate DisbelieversBear Trap For DummiesBlock Tesla From DecliningBen, Think Faber’s Depressed?Bullies Take Fledglings’ DollarsBreakeven Through Fancy DerivativesBorrowing Thousands For DeploymentBearish Trading Funds DisappearBogus Trades, Feel DirtyBears Truly Feel DeflatedBanks Throw Funds DesultorilyAnd my favorite:  Bungee Tethered, Feet Dangling

In reply to by Farmer Joe in …

Keltner Channel Surf Implied Violins Thu, 11/09/2017 - 17:12 Permalink

As a warning:  don’t start down this path, you won’t be able to stop, e.g.:CNBCChannel Nuzzles Buffett ContinuouslyCan Never Beat CartoonsChrist, Nix Bartiromo’s Chirping!Consequently, Now Bloomberg’s CoolCalled Netflix Bottom (Courageously)Cheerleading Noise Buys Commercials Complete Ninnies Believe CramerCalmly Negating Bearish ConvictionsCauses Numbness By Close

In reply to by Implied Violins

BlueHorseShoeLovesDT Thu, 11/09/2017 - 16:08 Permalink

Big Thanks goes out to Mark Cuban for absolutely pegging the bottom today by going on CNBS and toughting Up AMZN and NFLX.

Gotta love this “market”

It was as if he called me personally and told me to short the crap out of Vix.

D.r. Funk Thu, 11/09/2017 - 16:08 Permalink

Priced for perfection was over 2 years ago
Overpriced for Destruction

SUB 11 VIX STREAK will die, after this round, once and for all
==
1% 3% DRAWDOWN LAPSE closer to ending, they know it
==
ADDITIONAL FORGED LEG closer to ending, they know it
==
RELENTLESS SPATE OF ' CONSECUTIVE ' ATH-CLOSES can't go 'forever'

D.r. Funk Tolomeo Thu, 11/09/2017 - 16:26 Permalink

K. Go 1 step further. There's a person inputting those algos right? Giving them permission to influence downward motion, at a colossal repetitive rate? The algos are deciding on their own? Gtfo anyone mocking talk of Tptb or speculation or exposition on the human element present behind the machinery. You fucking donkeyasses.They are controlling itAs some of us asserted 4.5+ years agoBecause we're "not stupid" and knew what we were seeing

In reply to by Tolomeo

Keltner Channel Surf Thu, 11/09/2017 - 16:09 Permalink

Eclectic MixTape:  Track-of-the-DaySo throw her off the bridgeJust toss her in the drinkShe's coming in between usYou know the girl I mean. . . We both know it's got to be donePerhaps the noisiest entry in the 90s ‘twee’ category (likely because the group was American), infamous not only due to the pithy lyrics and later influence on noise-pop bands such as the Pains of Being Pure at Heart, but perhaps even more from the legendary, repetitive drum riff, an insanely quick, metallic “BAP BAP ba-BAP ba-BAP CRASH !” which I’m always inclined to play along with whenever I’ve had a caffeine overdose.  Unfortunately, as I don’t own a drum kit, I’ve destroyed 4 ½ Black & Decker toasters, as well as the muffler from a 2009 Honda Accord LX, trying to replicate this, rubber mallet in one hand, tree-pruning shears in the other.  In the event this might have a similar effect on you, you may want to completely enclose any nearby delicate objects (Tiffany lamps, wife, children) in a quality, commercial grade bubble wrap before clicking the link below.  Consider yourself warned …(Silver Spring, MD – 1992)     https://www.youtube.com/watch?v=nIunVd_cbHA

yanetjellen Thu, 11/09/2017 - 16:11 Permalink

I BOUGHT BITCOIN BUT DONT KNOW HOW TO USE IT LOL  MY NEPHEW SAYS HE WILL HELP ME BUT THAT BOY IS NOT TO BE TRUSTED.WOULD BE BETTER OFF WITH BEANS AND PLAYBOY MAGS

adolphz Thu, 11/09/2017 - 16:21 Permalink

Thank you zerohedge.com the day to day traders from SHEP WAVE keepso making me money. Just having a hard time swallowing themail precision in time of calls. Just seems rigged somehow. 

Keltner Channel Surf BlueHorseShoeLovesDT Thu, 11/09/2017 - 17:35 Permalink

Could be a mean-revert counter-intuitive special:  IWM, which has a 3-day Daily base at the Channel bottom, today even licking the Weekly front-weighted 20, rebounds to the 20DMA (going against 'tax plan BAD for small-caps' meme), while SPY and COMP end about at today's lows, near the 20DMA, which hadn't been seen in a week.  Quasi-holiday volume, could go against retail trading flows in strict volatility envelope reversion we've seen for nearly a decade.

In reply to by BlueHorseShoeLovesDT

MuffDiver69 Thu, 11/09/2017 - 16:54 Permalink

Hehehehe...Bunch Of Republican Senators said if they don’t pass tax cuts the donors say no money and then market sees plan and takes a dump..These people prove my vote for Trump and against them was spot on..Its a show that deserves ending..

geno-econ Thu, 11/09/2017 - 17:00 Permalink

Saudi's got it right---confiscate from the wealthy because the middle and low class can rise up to depose the Prince's and Billionairres.   Congress will not be spared for their complicity---smart ones getting out now.