Bank Bloodbath Batters Stocks Below Key Support As Yield Curve Crashes

Yeah that happened...

China was ugly overnight (after The National Team tried to save things on Tuesday)...

European stocks rebounded (along with US stocks early) on the heels of soothing White House comments - but remember they closed before the collapse in US had got going...

But that dead-cat-bounce died again as Larry Kudlow assured investors that Trump was not backing away from China at all... The Dow ended down ove 450 points from its highs of the day...

 

Small Caps are clinging to their June gains still...

 

This is now the 3rd day in a row the The Dow has closed below its 200DMA - something that hasn't happened since March 2016

 

Banks bloodbath'd

Remember the 'fortress balance sheet' banks - "no brainers" in a rising rate, lower regulation environment? Yeah how's that working out for you? S&P Financials index is down 13 days in a row - a record losing streak - and has seen 10 days in a row of fund outflows (also a record).

“What we see here is the market taking a glass-half-empty type of view of potential risks,” Sandler O’Neill & Partners analyst Jeff Harte said on Bloomberg TV. “The really big investing-centric banks have taken it on the chin even more because I think people are rightly concerned about trade wars. They’re truly international companies so the extent that trade wars were to break out, it would be worse news for them.”

And while US financials were lower, the collapse of Deutsche Bank once again today, sent GSIBs (Global Systemically Important Banks) down to 14-month lows...down 22% from the highs.

Time for US Stocks to catch down...

 

VIX topped 18...

 

Emerging Markets were massacred today after a few days of respite. The surge in the dollar crushed EM stocks (blue) which are catching down to the early warning signals from EM FX and EM Debt...

 

Treasury yields tumbled across the curve with the long-end outperforming...

 

30Y dropped back below 3.00%...

 

And the yield curve flattened to a new cycle low...collapsing since The Fed hiked rates

 

The Dollar Index surged again today - the biggest 2-day spike in over 2 months...

 

Yuan is in freefall... smashing above 6.62/USD today and down over 6% in the last few weeks...

 

Makes you wonder...this 10-day losing streak is the longest ever

 

And the inversion of the Yuan vol term structure is eerily reminiscent of the collapse in February..

 

Just when you thought the worst was over for Emerging Market FX... it collapses...

 

Dollar strength weighed broadly on commodities with silver underperforming but WTI exploded higher on the back of solid inventory data...

 

WTI tagged $73 and last month's highs and then faded..

 

Crude is now at its most expensive in terms of silver since Nov 2014...

 

Gold/Silver surged...

 

Finally we noted that as the dollar spiked, so did WTI - competing against each other to see who break the most correlation algos...

Comments

Jtrillian DiotheDog Wed, 06/27/2018 - 16:41 Permalink

The taper is underway.  Central banks giveth, central banks taketh away. 

What comes next will lead humanity to great suffering.  We are already being programmed for a civil war.  What comes after THAT is the surveillance/police state (problem/reaction/solution) - and the masses will welcome it.  Ruling class globalists will blame the market crash on the populist movement and for sure, Trump deserves at least some of the credit for what is coming - he took credit when the market made new highs after all. 

From the ashes, we will take the next step towards the new world order, with the police state fully implemented, and the dismantling of the Bill of Rights completely gutted.  For many, freedom will be considered a word that is overrated... in the face of promised security following the massive bloodshed that is to come. 

Along with the resurgence of the globalist agenda, we can expect either 1) another round of massive inflation via Central Banking "stimulus" or 2) a transition away from fiat to a new global currency like the SDR (Jim Rickards predicted this not me), or both in that order. 

Regardless, as long as we fall for the left/right paradigm that the MSM programs us to believe, we are blinded to the fact that both parties answer to the same masters and and continue to fight among ourselves (divide and conquer) rather than realize who the real enemy is (the deep state). 

"For we are opposed around the world by a monolithic and ruthless conspiracy that relies on covert means for expanding its sphere of influence--on infiltration instead of invasion, on subversion instead of elections, on intimidation instead of free choice, on guerrillas by night instead of armies by day. It is a system which has conscripted vast human and material resources into the building of a tightly knit, highly efficient machine that combines military, diplomatic, intelligence, economic, scientific and political operations.

Its preparations are concealed, not published. Its mistakes are buried not headlined. Its dissenters are silenced, not praised. No expenditure is questioned, no rumor is printed, no secret is revealed." - John F. Kennedy

Humanity, you give me so very little hope.

In reply to by DiotheDog

Superlat Jtrillian Wed, 06/27/2018 - 16:53 Permalink

Blah blah blah. The police state can't win in a country this large, with the huge distances in between. The USA will fragment, guaranteed. Hunger, however, will be a huge issue, especially with so many marshmallow people who can barely walk, let alone do death marches.

Former police and military will band into certain areas to secure themselves. Childless people will be culled, maybe eaten as always. No point in guessing what will happen, because anyone over 40 will be blamed and shot.

In reply to by Jtrillian

1033eruth BandGap Wed, 06/27/2018 - 18:04 Permalink

In general terms the trend is baked in.  You need only extrapolate on the trend.  Its the SPEED of the trend which is unpredictable.  I would say that the collapse can NOT begin in earnest until the 2nd amendment is substantially more dismantled.  And in order to do that it will require far more school shootings to gain the support of gun control of women.  A simple majority is required to squash the 2nd amendment.  

HOWEVER, once draconian rules are implemented, gun owners will hide what they have.   Media will make a HUGE propaganda effort and there will be actors making a big show on camera of turning in their weapons because "its the law".  

Its not going to get really ugly until Uncle Fraud starts confiscating or "appropriating" assets from the masses to prop up social security and medicare.  There is not going to be a rebellion from gun owners unless Uncle Fraud does something viciously unexpected.  A major kick the can effort will be made by Uncle Fraud to support failing pension plans and everybody will think everything is swell, until they try to buy something at the grocery store, pay tuition, buy diapers or gas.  

I can predict a great deal of it, just not the time frames.  But I will make my stake on this.  We'll be like Puerto Rico in 10 and Venezuela in 20.

In reply to by BandGap

new game Jtrillian Wed, 06/27/2018 - 17:12 Permalink

i can agree with some of what you say. i've been doom porning now for 30 years and it just never seems to come to fruition.

like cog so eloquently posted: one big crumble!- (of humanity-my add).

might i suggest, too many people on da sphere, or as a scientist would explain: the atoms are colliding moar often in the confined space(s), with the heat rising to a splosion...

 

In reply to by Jtrillian

WhackoWarner new game Wed, 06/27/2018 - 18:26 Permalink

Doom porn?  I think not. 

Many have spoken about the "hidden hand".

curiosity alone leads a mind to understand what that has meant over many decades and many places.

Own the media and you own the lies. Own the educational system and you own the mindset. Own the illegal central banking system and you own the political systems.  Incorporate nations and you own their laws.  Set up central banks and phantom credit and establish the ring that rules them all?  (BIS) and you corner every market and change it at the lift of a finger.

Lay in wait with patience and resolve for centuries and you "own" all property and wealth.

Brilliant actually.

 

 

 

In reply to by new game

D.r. Funk Manthong Wed, 06/27/2018 - 16:11 Permalink

They force-supersurged it 8000 following '16. So that goofs like you would be able to say "Oh, Really" "Wake me up" "When it's down X-thousand" "Oh it's only down but look at since January" MORON-PROPAGANDIZED

You dont see the logic?

The setup scenario that then allows such "gullible" comments?

Where the "avg joe six pack" says w/e it's not down much?

Proving how undiscerning and pathetic they are in time?

In reply to by Manthong

Scipio Africanuz davatankool Wed, 06/27/2018 - 17:10 Permalink

There's one thing that I'll never tell you though it be true. And why should I not tell you? Because it'll immobilize you, no matter how strong you are. However, I'll give you hints of what you may do, doing it however, or not, is your prerogative.

In other news, some may be wondering why I asked that folks pray for Charles Krauthammer's soul and I'll tell you why.

Many believe that conscience is a one way mechanism, in that it acts to prevent crimes or what have you. Well, that's only partially true. Here's how it works: First things first, it REVEALS your nature, or way of thinking to you very clearly, it brings to the light, your most innermost thoughts, your hidden immorality. Now, when this is brought to the fore, out of the darkness of self deceit, it becomes possible to act on them.

When you make the choice to follow your basest instincts, then the preventive part of conscience goes to work, to persuade you to do that which is just, and life affirming. It is then, that your depravity, or nobility is revealed, based on your choices. Whatever choice you make, the core of conscience records it. It's that simple.

Now back to Charles Krauthammer, he was neither the devil's apprentice, nor a wicked man contrary to what you might think. He was the masterful conjurer of your basest instincts to the surface, that if you were moral, you would vanquish. He did a masterful job, and because America was devoid of basic morality, the country succumbed to depravity.

Without Charles Krauthammer bringing the depravity to the surface, there could have been no way for the balancers to understand the moral imbalance afflicting the USA.

He fulfilled his purpose and because of that, I pray for his soul. Even if he suggested immoral actions, he never forced Americans to execute those actions, folks had free agency to do otherwise, and they DIDN'T! Charles Krauthammer, rest in peace.

So now, enter the cleanup crew...

In reply to by davatankool

D.r. Funk gatorengineer Wed, 06/27/2018 - 16:20 Permalink

A ridiculously-manipulated fakeout-first-90-minutes +250 to a valve release red tripledigit close and -purposeful- -programmed- nasdaq bloodletting

is a bloodbath

[so many of you - stop lamefully concluding from numbers only - if you have any ability whatsoever to look at context - a vix that hasn't been allowed to stay under 12/13 whatsoever with the overhead-crack in place months ago and the lifeline of the corrupt power structure hanging by strings, of which they most likely, used the indexes as contingency or preemption scenarios - thank you]

In reply to by gatorengineer

Karlus Wed, 06/27/2018 - 16:08 Permalink

It's funny, no one cared about what Larry "the Drunk" Kudlow said until Trump gave him some juice. I'm amazed that they care now.