Credit Crashes, VIX Tops 14 As Stocks Open Lower For 7th Straight Day

Something changed...

Futures were weaker overnight but dumped at the cash open...


As the collapse in HY credit accelerated... worst day for HYG in 3 months


HYG is now negative year-to-date...


With spreads crashing back abopve 400bps...


USDJPY was unable to save stocks and VIX is now topping 14...


VIX is starting to catch up to credit...


Equity markets are down at the open for the 7th straight day... Trannies (blue) and Small Caps (dark red) are the worst performers but Nasdaq (green) is plunging today...


It seems like the Saudi debacle broke something...


Or is this why?

Did the buyer of first and last resort just disappear?


GUS100CORRINA tocointhephrase Wed, 11/15/2017 - 10:33 Permalink

Credit Crashes, VIX Tops 14 As Stocks Open Lower For 7th Straight DayMy response: This cycle of VIX, Credit and Stock Valution interactions can become a vicious DEATH SPIRAL from which there is NO END. Why: LEVERAGE IS OFF THE CHARTS!!!! What we have is LTCM on STEROIDS.This LADIES and GENTLEMEN of ZH is the GREATEST FEAR OF EVERY CENTRAL BANKER IN THE WORLD.The CENTRAL BANKERS know exactly what they have done to fuel this out of control equity/bond mania.All we can see is DEBT as far as the eye can see. Very sad.

In reply to by tocointhephrase

Serfs Up FreeShitter Wed, 11/15/2017 - 11:26 Permalink

Indeed.  Nothing has fucking changed.  As I type the ""markets"" are being frog-marched back to green.Put a godamned ruler under them when they want to.Meanwhile, the middle class is being destroyed.  When the time comes, I whope to be on the tribunal meting out punishment.  The central bankers will be at the top of the docket.  An example that will never be forgotten by future generations must be made of them.

In reply to by FreeShitter

LawsofPhysics runningman18 Wed, 11/15/2017 - 10:10 Permalink

Wake me when it is down 30% or more.  In the meantime I'll keep collecting dividends asshat on the equities I hold. Many of us already went to cash positions, but there are still dividends to collect from good companies that actually do provide real products of real value. Most of my selling was in banking or healthcare related stocks. There is still a lot to sort out in these sectors of the eCONomy.  Keep the war stocks folks, always a winner when power and control is being "renegotiated" (as it is now).The point is in fact that there is NO MECHANISM FOR TRUE PRICE DISCOVERY, AND HENCE NO "MARKET".

In reply to by runningman18

runningman18 Erwin643 Wed, 11/15/2017 - 14:13 Permalink

Well, gold has done relatively well over the past couple years.  Silver not so much.  I agree that stocks are in a bubble, it's the contention that the bubble goes on forever that I disagree with, considering no bubble in history has gone on forever.  This bubble is way past due for a major correcton, which is why watching changes in trends, like the changes over the past week, is important.   

In reply to by Erwin643

FreeNewEnergy LawsofPhysics Wed, 11/15/2017 - 10:14 Permalink

If you're talking about the Dow and using Common Core math, maybe.Using real math, it's down 1.42% from ATH.Not my downvote, even though you deserve it.BTW, at the start of the GFC in 2008, gold and silver were whacked harder than stocks, so, except liquidation sale, buying opportunity, then higher, maybe all over a 6-9 month span, or, maybe a long period of deflation/depression (3-7 years).Sorry to be so optimistic.

In reply to by LawsofPhysics

FreeNewEnergy Wed, 11/15/2017 - 09:57 Permalink

I welcome the coming carnage.The major averages are up enormously since the Trump election. Now, since the elite aren't happy with Trump, and he's been boasting about stock market performance, they've got him where they want him.Prepare for impeachment proceedings, recession, and other ass-reamings.BTW: in case anybody noticed, volume on the major exchanges was the highest in 5 months. Probably going to beat that handily today. The crash has begun.More popcorn for everybody, at 1-1.25% interest, of course.Go ahead, FOMC, raise those rates some more, trigger recession right in the middle of holiday season.Merry Christmas to all...

. . . _ _ _ . . . Wed, 11/15/2017 - 10:07 Permalink

When VIX and Vietnam are the only two major global markets up, things are not good.Things will stabilize by noon and start to reverse.But BTC way up and silver hammered?Strange days.

Yen Cross Wed, 11/15/2017 - 10:02 Permalink

     The party is just getting started. Three carriers pack hunting.  I'm layering in AMZN puts. There's massive sellers that are going to unload.

artvandalai Wed, 11/15/2017 - 10:03 Permalink


0valueleft Wed, 11/15/2017 - 10:08 Permalink

The 9th floor  at Liberty street  are having an early xmas party. They'll return to their desks this afternoon and control the bleeding to 30 70 pts down by 4:00, or maybe even call in a fed dove to speak action it to 30-70 in the green. 

fulliautomatix Wed, 11/15/2017 - 10:28 Permalink

"It seems like the Suadi debacle broke something." Yup - that there is your black swan. $800 billion looking for a place to hide, quickly. It'll end up going to the lawyers in fees. 

Dilluminati ludwigvmises Wed, 11/15/2017 - 10:47 Permalink

It is crashing in deliquent accounts: autos, college payments, credit cards.   Inversely: you are seeing cord cutting increase as the consumer is squeezed.  It was almost laughable listening to CSPAN yesterday and hearing touting of the tax cut that was being proposed and then the corresponding argument that taxable healthcare was REQUIRED to keep the young and healthy in the pool.  Meanwhile the ability to buy things in the real economy erodes, home ownership falling because the young and healthy must pay for the parents who could no nothing more than selfishly demand moaar from their children.  I listen to people call into CSPAN and demand that someone pay for their healthcare.  They should call their children and tell them what they are really advocating.

In reply to by ludwigvmises

Dilluminati Wed, 11/15/2017 - 10:41 Permalink

hmmm real economy isn't that great.  All the macro economics illustrate one fact: that the inequality in wealth distribution will erase allot of any perceived forward progress of any economy and the reality of bubble in a stage of ongoing debt-deflation is occuring.  You just cannot explain the facts irrespective of the wealth affect with the compensation and growth in wages (real economy) and the disproportinate wealth to the 1% and the result when those dollars are wiped from ledger.  Ergo the sum is less dollars in the economy as a consequence of tbe wealth destuction of debt.Now I don't care about being right, or any short term position, I anchored to non-callable 10 year FDIC insured in retirement and that is going to make me happy for some time to come, beyond the next reckoning.  However when I look at the tax debate the best comment I heard was that the inability of this so called globalism to self regulate, where the corporations were unnacountable to any taxation will be identified as a historical failure of the era.  The 1% irresponsible as they are will be clearly identified as the culprits.the coinbase is the last telltale sign that this is a bubble, it's not going to end well. 

Turin Turambar Wed, 11/15/2017 - 10:56 Permalink

LOL, sure.  Something has changed until 10:30am when the PPT has to get up and go to work.  The economy is booming.  The PPT has doubled the number of people it employs because it now has to work in two shifts.  There's the 10:30 am team and the 3:30pm team.  :-O