US Plunge Protection Team Rescues Market As Global Stocks Turn Red For 2018

The message to the bears today...

Global Central Bank balance sheets have never fallen this much (almost one trillion dollars in six months)...

 

No National Team last night in China... did not end well...

 

European stocks extended yesterday's losses...

Saudi Stocks rolled over today after another buying panic at the open...

 

Global equity markets are now negative for the year...

This is the worst start to a year since 2011.

As the US markets start to catch down to the rest of the world...

 

BTFD!!! So last week it was Saudi's Sentiment-Savers, Monday of this week was China's National Team, and today was NYFRB's Plunge Protection Team...Nasdaq even briefly managed to get into the green (after being down 2.75% in early trading!)

 

Futures show the fun and games best...

 

It's been an ugly month that got a lot worse today before the panic-bid...

  • Small Caps lowest since April down 12.5% from highs.

  • Dow Transports lowest since April - down 11.7% from highs.

  • Nasdaq  lowest since May - down 8% from highs.

  • S&P lowest since May- down 7% from highs.

  • Dow lowest since July - down 6.5% from highs.

 

Small Caps went red for 2018 intraday today...

 

After the first hour which saw nothing but selling (no positive TICK until 1030ET), markets began to accelerate with huge positive TICKs in the last hours...before some serious late day selling hit...

 

And in case you wondered - yes it was a giant short-squeeze...

 

VIX was monkeyhammered back down to spark some momentum in stocks (but the VIX term structure inverted further on the day)

 

The Dow ramped all the way back to its 200DMA but none of the other majors did...

 

FANG stocks were miraculously bid back into the green...

 

Tilray - the pot stock - is today's best example of utter idiocy - it was down 18% at the open and ramped all the way green...

 

Materials and Financials are 2018's biggest losers for now (followed closely by Communication Services)... Tech leads....

 

Financials hit 13-month lows today, confirming the massive double-top...

 

Semi stocks massive double-top looks set with SOX hitting a 12-month lows today...

 

And while the fallback excuse that everything is still awesome is that credit markets are still tight - things are starting to crack in the junk bond space with spreads spiking back to 5-month highs...

 

Treasury yields staged a v-shaped recovery on the day but did end lower...

 

5Y yield dropped back below then ripped back above 3.00%..

 

Meanwhile the short-end of the rates curve is starting to price out Fed hikes...

 

The Dollar ended the day lower, fading notably after China closed...

 

Offshore Yuan was modestly lower on the day (after a lower fix)...

 

 

Despite a modest dollar drop oil was pummeled and PMs managed gains...

 

WTI Crude futures crashed today (to a $65 handle at the lows) after OPEC headlines squeezed spec longs...

It tested down to its 200DMA and bounced

 

But Silver and Gold spiked and held gains even as stocks were levitated...

 

Gluskin Sheff's David Rosenberg highlighted the chart of the day showing American firms never having found it so hard to find qualified (or drug-free willing workers who are ready to step off welfare)...

Finally, with President Trump's approval rating at record highs, will that mean another leg higher for the dollar?

And given President Trump's hate of a strong dollar, will be pushing for a lower approval rating?