China's National Team Rescues Global Stocks As Yuan Tumbles, Gold Gains

Quite a week where Chinese, European, and US Stocks take huge rollercoaster rides to end unchanged... (with th every visible hand of China's National Team and the magically coincident sudden short-squeeze in the US)...

China was looking seriously ugly on the week but the worst GDP (bar Q1 2009) print in the country's history was just what The National Team needed to start a buying-panic in Chinese stocks...

 

And thanks to that momentum ignition from China, European stocks scrambled back to even on the week... (Italy ended down 1%)

 

But EU Autos were hit after Daimler...

 

But while US equities were aided by the exuberant Chinese momo, selling pressure returned..

 

As Tuesday's panic-bid (biggest short-squeeze since the election) just couldn't sustain gains. In the end, stocks went nowhere...

 

A Big Sell Order hit around 2pmET...

 

All the major US indices are sat right at key technical levels...

 

The midweek short-squeeze was hit hard...

 

VIX ended the week lower but still relatively elevated at 19 - note each time we shifted to positive on the week, vol-sellers appeared...

 

US Autos were just as ugly after Daimler's downgrade...holding just above 2016's lows.

 

US Homebuilders continued their collapse...down 20 of the last 23 days

 

October remains a mess for US markets...

 

Trannies remain red for 2018, and Small Caps have almost erased all their year gains...

 

Bonds also had a rollercoaster week - ending higher in yield led by the short-end (belly outperformed)...

 

But commodity divergences suggest bond yield should be notably lower...

 

The Dollar Index rallied on the week (for the 3rd week in 4) - highest weekly close since June 2017

 

China's offshore yuan tumbled for the 7th week of the last 8 and the lowest weekly close since Dec 2016...

 

Cryptocurrencies were mixed on the week with Ripple best, Bitcoin and Ether with modest gains and Litecoin and Bicoin Cash lower...

 

Despite a strong dollar, Gold and Silver managed to hold on to gains as copper and crude dropped...

 

Crude kept sliding all week (back below $70) but gold outperformed...

 

Finally, we note the regime shift in China's hold on Gold - something snapped...