Mario, Mnuchin, 'Mao 2.0' & MbS Masscare Markets

But, but, but... everything was awesome on Tuesday?

It started in Mao2.0-land - China markets were carnage...

Despite double-intervention the prior day, Chinese equities plunged...ahead of tonight's macro data dump...

For context, it's a utter bloodbath in China this year - with China's 'Nasdaq' - Shenzhen - down over 35% YTD...

 

Offshore Yuan plunged back to cycle lows after a major drop in the CNY Fix...

 

And then spread to Europe... which got seriously ugly towards the close after Draghi's comments...

 

Which sent Italian bond spreads to their highest since 2013...

 

And US equities desperately clung to some positivity, but Mnuchin and Mario sparked mass derisking...

S&P is down 9 of the last 11 days.

Futures show the real action as today's drop erased the panic-bid from Tuesday...

 

Small Caps are green for the week (short-squeeze)...

 

The biggest short-squeeze since the election... is over!

 

Which sent all the major US equity indices back below critical technical support levels...

 

October continues to be a bloodbath... (Trannies are back in the red YTD)

 

The VIX term structure remains inverted for the 9th day in a row...

 

FANG Stocks were ugly...

 

With NFLX erasing its post-earnings spike...and IBM continuing its freefall since earnings...

 

Homebuilders down 19 of the last 22 days...

 

Treasury yields spiked yesterday to catch up to stocks, recoupled and then fell today with stocks...

 

Bonds were well bid as stocks slumped, erasing all oif yesterday's panic-selling... with the belly of the curve outperforming...

 

10Y yields erased much of Tuesday's crash higher...

 

Gilts, Bunds, and China 10Y all saw yields drop along with UST...

 

The Dollar Index continued to soar higher...back towards the upper-end of its 4-month range...

 

EURUSD tumbled back near 15-month lows...

 

And Cable slumped as Brexit headlines puked on the tape..

 

EM FX dropped the most in 7 weeks led by the Rand, Mexican Peso, Turkish Lira, and Argentine Peso...

 

Cryptocurrencies all fell notably on the day led by Ripple...

 

Bloomberg's broad-based Commodity Index tumbled most in over 2 months...

 

Despite dollar's strength, gold managed gains as copper and crude crumbled...

 

Gold and Crude decoupled at around 8amET on Oct 10th...

 

And finally, the sudden 'regime change' collapse of the yuan relative to gold continues to worry many...