Turmoil: Dow's Biggest Point Rout Since Lehman; Bonds, Bitcoin Crash

This week for Bitcoin, Bonds, and Bullish stockholders...

Today, and this week, saw some extremes:

  • This week was the worst for bonds & stocks combined since Feb 2009


  • Dow's biggest single-day drop since Brexit (June 2016)
  • Dow's biggest point drop since Lehman (Oct 2008!)
  • Dow's worst week since Jan 2016
  • VIX's biggest spike since Aug 2015 China Deval / Flash-Crash
  • China's Shanghai Comp worst week since Dec 2016
  • China's Shenzhen Comp worst week since Jan 2016
  • Germany's DAX worst week since Feb 2016
  • 30Y UST Bond's worst weekly drop since the election (Nov 2016)
  • UST Yield Curve (2s30s) biggest steepening week since election (Nov 2016)
  • High Yield Bond's worst week since March 2017
  • Dollar Index first weekly gain in two months
  • Dollar Index biggest daily gain since Jan 2017
  • Gold's worst week in two months
  • Silver's worst week since July 2017
  • Bitcoin's worst week since Jan 2015

Where were the dip-buyers?!

China ugly..


Europe dumped into the red...


And US Stocks were crushed...


Futures show the chaos a little better - Friday's melt-up, numerous v-shaped recoveries this week as dip-buyers crambled back in... and then today!


And today was a bloodbath for stocks...


The Dow ended down 670 Points - the biggest point decline since Lehman in Oct 2008...


Year-to-Date, Trannies and Small Caps have given up most of their gains...


Retailers and Energy stocks were the big laggards but everything was whacked with banks tumbling today despite soaring rates and steepening curves...


VIX spiked to its highest since the election today...



Risk-Parity fund deleveraging was triggered again (with bonds and stocks down hard)...

Risk-Parity funds had their worst day since May 2017 today...


It appears the bond spike has spooked stocks...


In fact this is the worst day for aggregate losses in bonds and stocks since September 2016...

Bonds bloodbath'd on the day and week...


30Y Yields were within a tick or two of 3.10% this week...


The yield curve steepened notably on the week


And debt ceiling anxiety is back as the Bill curve inverts...


The Dollar Index managed its first weekly gain of the year, but remains well below the Trump rescue highs...



In commodity-land, everything was red on the week with silver getting monkey-hammered today...


Silver is back at 6-week lows..


Finally, there was carnage in cryptocurrencies this week, with a modest rescue today.


This was the worst week for Bitcoin since January 2015, back below $9,000...


And finally... remember, you are here...




Endgame Napoleon 52821740 Fri, 02/02/2018 - 21:46 Permalink

The wealth gap is Yuge in this country Thing is, a lot of people lose a ton that they really can’t afford to lose. If those BitCoin investors are really just young people with modest income, putting their bonus money in cryptos, they do not have money to burn. Older people just prior to retirement would be in an even worse situation. But half of America has ZERO in stock...Zero Hedges and Zero Bets. 

In reply to by 52821740

shocktherapy Deep Snorkeler Fri, 02/02/2018 - 16:45 Permalink

This is not a singular case.  In fact it's utterly common for law enforcement at all levels to do exactly this sort of thing -- use an unlawful means to develop a case and then lie, generating a "parallel excuse" that leads them to the arrest.  This is not just an offense against the Constitution it is felony perjury as well when they lie in their pleadings and presentations to the courts of this nation.  While this act is most-common in drug cases it's hardly confined there.  All of this is illegal and yet not one cop has gone to prison -- although a few defendants that uncovered it before sentencing or appeal have had their convictions tossed.

The root problem is that you, America, will not get off your ass.  Where was the demand for everyone involved in that crap in 2013 to be fired and prosecuted?  It's not like I didn't report on that case or try to bury it, you know.  Nor was I the only one -- a local paper ran the story as well and thousands of subscribers read the article.

Suddenly you're outraged that this very same thing was done to a Presidential candidate.

These events happened because you failed to get out your pitchforks, torches and a demand for criminal prosecution and disbandment of all agencies involved in the thousands upon thousands of similar cases aimed at other people over the previous few decades.

It's certainly true that you don't want 100 kilos of heroin flooding your town.  But when you get down to it the process exists to conduct surveillance and obtain warrants legally for a reason -- it prevents perversions of justice and rank abuse exactly as appears happened in this case.  The law forbids intentional concealment as occurred here for that exact reason and it is the American public's refusal to call for prison terms and instant disbandment of all state, local and federal law enforcement agencies that have intentionally, wantonly and with complete disregard for the law engaged in such practices that led to this abuse.

If you are only upset about this because you like Trump then you're no better than they are, in that you're perfectly ok with so-called "law enforcement" committing felonies so long as "the right people" are arrested, charged and prosecuted.

Karl Denninger 

In reply to by Deep Snorkeler

Mikeyyy Deep Snorkeler Fri, 02/02/2018 - 17:25 Permalink

MAGA?  How 'bout we got the tax cuts you wanted, which leads to increasing deficits which have to funded by selling treasuries, which increased supply pushes interest rates higher along with the stimulative effects of the tax cuts in an economy that is already at full capacity which causes the Fed to push interest rates higher as well.  All of which leads to a massive selloff in stocks.


So, you think Trump is gonna take credit for THIS stock market?  


MAGA your ass...

In reply to by Deep Snorkeler

Endgame Napoleon Deep Snorkeler Fri, 02/02/2018 - 21:19 Permalink

I blame

  1. unfair tax welfare that rewards citizens and noncitizens for having sex, reproducing and working part time instead of for hard work;
  2. mass-scale, illegal immigration with the same welfare rewards for the high womb producers;
  3. dual-high-earner couples who concentrate the wealth and benefits from salaried jobs in fewer households without creating jobs who are retained — just like their frequently absentee welfare-momma counterparts in the crony-parent workplaces at the bottom of the food chain — despite often massive amounts of absenteeism; 
  4. low productivity — SHOCK.

In reply to by Deep Snorkeler

Endgame Napoleon two hoots Fri, 02/02/2018 - 21:25 Permalink

What about penny stocks? Some people recommend that route, and pennies are all that many non-womb-productive, non-welfare-eligible and non-child-tax-credit-eligible Americans have, when rent soaks up half of their paychecks. Do people actually make money off of that? It does seem like you could not spend just pennies, getting into stock trading. It seems like there would be fees, costing wayyyyy more than the penny trades.

In reply to by two hoots

Ajax-1 Sir Edge Fri, 02/02/2018 - 18:28 Permalink

I think you might be onto something with your analysis. Is it possible that the "Deep State" minions with their criminal bankster friends decided to send a message to President Trump that they are willing, ready and able to crash the stawk market in reprisal for the release of the FISA memo? Dark forces at play here.

In reply to by Sir Edge