Dollar Jumps, Stocks Dump As Crude Carnage Continues

RIP Stan Lee...

China had an extremely exuberant session overnight with CHINEXT (China's small cap/tech index) exploding almost 3.5% higher...

But don't get too excited about CHINEXT...

 

Ugly day in Europe with DAX leading the way lower even as Italy and Brexit anxiety is back in the headlines...

European banks were ugly as Carige was bailed out...

 

US equity futures extended Friday's late-bounce gains in the overnight session but started to fade quickly ahead of the cash open and extended those losses as AAPL, GS, and trade headlines sparked notable selling...

 

With no bond market for the algos to pivot off, stocks dropped, stabilized after the European close, then dumped into the last few minutes - Nasdaq was worst on the day

Weakness in stock indices started off driven by Tech but was dragged lower into the close by Oil...

 

The Dow broke back below its 100DMA and the rest of the majors all broke back below their 200DMA (after the machines ramped to close them on Friday)...

 

Stocks were dropped on lower than average volumes (around 20% below avg - though higher than during last week's rally), and liquidity remains terrible...

 

And as we warned yesterday, with gamma imbalanced, selling is begetting selling...

VIX is back above 20 as it has erased its post-Midterms uncertainty drop... (and VIX term structure is inverted once again)

 

Stocks have erased post-Midterms gains...

 

AAPL was hit hard on demand headlines from a supplier (LITE), testing down to its 200DMA (AAPL knocked 60 points off the Dow)

 

Goldman was battered... biggest 2-day drop since April 2010. (GS knocked over 100 points alone off the Dow)

 

GE was a bloodbath...despite the CEO's best efforts...dropping to a $7 handle for the first time since its crash lows in March 2009...

 

FANG was FUBAR...

 

California Utilities were burned...

 

Energy stocks rolled over - starting to catch down to the ugliness in the oil complex...

 

The cash bond market was closed for Veterans Day but Treasury futures imply a 3bps compression in 10Y yields on the day...

 

The Dollar was up for the 3rd day in a row to the highest since May 2017 (this 3-day jump is the biggest since April_

 

Offshore Yuan weakened for the 5th day in the 6, almost erasing last week's short-squeeze surge... (hints at another squeeze coming soon from fwd points action)

 

Cable was ugly as Brexit headlines dominated the flow once again...

 

Cryptos mixed with Bitcoin unch, Bitcoin Cash down and Ripple up...

 

Dollar gains sent commodities lower across the board...

 

Oil rebounded modestly on the day on Saudi production cut headlines but as Trump tweeted against OPEC cuts and WTI crashed back into the red to a $58 handle for the first time since Feb... (11th day in a row - another record losing streak)

 

Gold in Yuan has erased 50% of its recent re-valuation (Yuan strengthening)...

 

Finally we remind some who question why would anyone sell the "no brainer" stocks like Apple and Goldman? Simple - they are forced to as redemption deadlines loom.