Dow Futures -600Pts, Hong Kong Down 6%, Bitcoin Tests $6000

Update 1100ET: As Asia resumes trading after the lunch break, things have gone from worst to worst-er.

Dow Futures are down 600 points from the close...

The Dow is now down 3600 points from its highs - Dow 22,687 is the next target to the downside (200DMA)

With Nasdaq and S&P following...

Asian equities are a bloodbath with Hang Seng China down 6.1% - its biggest drop since 2011...

And Bitcoin's bounce into the US equity close has evaporated...

And may have further to fall...

Rate-hike expectations are plummeting...

Time for a rate-cut?

*  *  *

Playing catch-up, or worse, appears to be the opening scenario for Asian equities which are down from around 2% (Malaysia) to 5% (Japan) but perhaps more importantly, Treasury yields continue to tumble.

US Equity futures are continuing to tumble in overnight trading - all entering the 10% technical correction...

On the bright side, Japanese stocks are not down as much as Nikkei futures were in the US session...

 

But the loss of faith in Fed rate hikes continues as 2Y yields tumble back below 2.00%...

 

Asian FX is also extending its drop against the dollar...

And while the dollar is stronger, gold is also bid...

Comments

NoDebt directaction Mon, 02/05/2018 - 21:21 Permalink

From our brand spanking new Fed Head earlier today:

"our financial system is now far stronger and more resilient than it was before the financial crisis that began about a decade ago. We intend to keep it that way."

Do you think he's kidding?  Do you think a 10% correction won't put rate increases PERMANENTLY off the table?  Do you think a 20% correction wouldn't instantly usher in the next round of QE and stealth (or not so stealth) bailouts of "systemically important" financial institutions?

Do you think the Fed is going to stand idly by while everything slides off the edge of the motherfucking table (including the debt of the Feral Government)?

If necessary, the Fed will buy the entire stock market starting tomorrow morning at 9:30 am as well as every outstanding TSY on the planet.  

 

In reply to by directaction

38BWD22 J S Bach Mon, 02/05/2018 - 22:10 Permalink

 

Hmm, it does have the look now of a massive purge, no?

If this is indeed the New Big Bad Bear, I hope that those with substantial stock holdings took some profits they made on paper over the past year or so.

But, it does look very scary, yikes!  Maybe they (the Fed) can stop the swoon now, but I doubt they could for more than a day or two.

 

Got gold?

In reply to by J S Bach

lookslikecraptome Nature_Boy_Wooooo Tue, 02/06/2018 - 00:36 Permalink

I think you are a tad optimistic about cryptos recovering. The sentiment  outside the crypto world is becoming so negative about cryptos.

https://cryptowat.ch/gdax/btcusd   do u have any idea what it will take to drive coin back up again???

 

The idea of people rolling cash into cryptos cause the markets are bad is ridiculous. 

 

There are numerous well researched articles about coin that differ greatly from the pumpers of coin. 

 

You need to look up some of the research about who is determining that BTC et al. is not functional. 

 

I doubt if this will hurt people in the markets as badly as you think it will. 

In reply to by Nature_Boy_Wooooo

ACP zorba THE GREEK Mon, 02/05/2018 - 23:32 Permalink

Bitcoin is selling off because the owners are getting margin calls from their equity portfolios.

This is the Fed working in concert with the deep state to destroy the economy.

Interesting how the waterfall happened when "the memo" came out.

So the only question is, will the Fed tank this market straight up, or allow a lower high then tank the market in "traditional" style?

In reply to by zorba THE GREEK

SirBarksAlot ACP Mon, 02/05/2018 - 23:44 Permalink

So, when Christine La Garde gave her hail-Mary pass over Bitcoin not so long ago, you think that was, uh, planned?

And you think maybe the fact that it was hacked, China and South Korea regulated it and India banned it, all in a week's time, may also have been planned?

No shit?

In reply to by ACP

Mementoil JimmyJones Mon, 02/05/2018 - 21:43 Permalink

Have you noticed how the Crypto space goes on collapsing, as stocks are headed down?
Well, that should prove once and for all that Crypto-currencies are not "the new gold" and most certainly aren't "a safe haven asset", as some crypto-gurus had the audacity to claim.

Right now Gold and Silver are practically the only assets rising in a sea of red.

In reply to by JimmyJones

38BWD22 Mementoil Mon, 02/05/2018 - 22:07 Permalink

 

Mementoil, this ought to show everyone that cryptos and precious metals are indeed separate asset classes.  It's now so obvious.

Still there is a role for cryptos for those willing to risk it, in my case having a maximum of 1% of my net in BTC (combined with a little BCH).  Various times during this last massive bull-phase, I traded in BTC for gold.  Three of those times were when BTC was over $15,000, one more when at $11,000 and change.

Today I bought a small amount when BTC was at $6900 or so (plus, alas, the 13.5% premium from the "BTM").  So, yeah, I'm down on today's purchase.

But, BTC has been through many bear markets of between 30% and 80% just since I got in, perhaps this about the fourth one.  Just part of the deal.

In reply to by Mementoil

38BWD22 Pareto Mon, 02/05/2018 - 22:50 Permalink

 

Poorly worded then.

Cryptos (let's limit this to BTC at least for now) have always been extraordinarily volatile.  A 30% drop barely makes crypto people (except brand newbies) even blink.

Yeah, OK, drops of 70% are rarer, but it has happened at least once since I got in (late 2014, when ZH started articles on Bitcoin).

"Just part of the deal" means that you should expect extreme volatility.

In reply to by Pareto

Mementoil 38BWD22 Mon, 02/05/2018 - 23:45 Permalink

No asset can accept extreme volatility, not if it is growing, anyway.
The growth of an asset is predicated on more and more people buying into it.
And once you are done with the hard core fanatics (of which there is bound to be a finite number) you reach the regular folks, the ones who are not educated in crypto-lore, and who don't have the stomch to HODL.
And then extreme volatility becomes terminal volatility, because there are two many people out there who got crushed in the previous collapse, and who will refuse to do that again (and warn all their family and friends).

As I have warned in the past, the extreme volatility will eventually kill Bitcoin.

In reply to by 38BWD22

. . . _ _ _ . . . NoDebt Mon, 02/05/2018 - 21:38 Permalink

Is this where China starts to liquidate its $2T worth of US holdings?

"The more aggressive the Americans are, the sooner they will see the final collapse of the dollar and by getting rid of the dollar this would be the only way for victims of American aggression to stop this onslaught. As soon as we and China dump the dollar, it will be the end of the US’ military might," Sergey Glazyev said in an interview with TASS.

http://tass.com/politics/942643

In reply to by NoDebt

. . . _ _ _ . . . Element Mon, 02/05/2018 - 23:08 Permalink

I am not under the illusion that TASS is rooting for the USA. Truth be told, neither am I. I don't take sides; I seek truth. This typical American binary view of, 'if you're not with us, you're against us' is BS. I am neutral until the facts nudge me to one side.

TASS did not invent what Glazyev said, they simply reported it.
I really don't see what difference it makes who publishes a quote, as long as the quote is accurate.
If they editorialize, that's a different matter, but I only posted a quote, and left a source as a reference.

Yes, I TASS a lot. As a matter of fact, I will read anything from anywhere. I read everything I can get my eyeballs on.
Now if you are trying to imply that I only read/rely on TASS/Russian news to get my information, you couldn't be more wrong.
But not to read TASS and RT and Sputnik and Pravda and Fort Russ etc. means you are not getting the whole story from Russia.
Are you suggesting that this is a better strategy for uncovering the truth?
Is there any mis/disinformation in what I read? Yes, shitloads. But I consider myself discerning enough to be able to separate the wheat from the chaff, and where I cannot, I do some additional research. I sometimes read CNN, Fox, MSNBC, Reuters, CBC, BBC, Ha'aretz, Xinhua, etc etc etc as well. There isn't much from anywhere that I haven't read. I also read lots of blogs and independant news websites, not to mention government sources, religious texts, scientific archives... and have been doing so for decades. Does that mean I believe it all? Not by a longshot. But you know what they say, "Know thine enemy."

So if you are trying to paint me as some sort of communist Russian troll, you're gonna' hafta' do better than that. And if you are trying to discredit the quote by discrediting the publisher, I could give you much better than, 'well, I never trusted the Russians before 1991' as far as TASS goes, but like I said, the point is moot. Glazyev said it, he meant it, and if you don't like it then sticking your fingers in your ears won't help.

FYI, there is more BS in American MS media than in any other media on Earth, just so you know. But the BS is everywhere, and the ONLY way to know the difference is to take it all in, compare and contrast it, test it all out, and see what remains in the end. Sticking to just CNN, or just FOX, or just American media, or just western media is a trap they want you to fall into. What the hell did they go and invent the internet for if you're just gonna' read about the US?

Good luck. You're going to need it. It's over for America.

In reply to by Element