“Markets In Turmoil” Dow Suffers Worst Streak Since 2011, Yield Curves Collapse

#AceFinanceNews – Featured Report: Nail-biter… or Cliff-hanger? (Stallone is The PPT, the girl is the market, the carabiner is The Fed, the guy in the other chopper is CNBC)

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Post-Payrolls reaction…

Despite reassurances that a) rate-hikes are priced-in, 2) rate-hikes are bullisher for stocks than rate-cuts (why would The Fed raise rates if everything was not awesome?), and thirdly) buy the dip! It appears the rising rate-hike probability is ‘coincidental’ with markets turmoiling…

But don’t forget…

Flashback Friday! http://t.co/KXtCoypZ8Z cc @jtcrombie @zerohedge pic.twitter.com/XMq9jc2ZoO

— Rudolf E. Havenstein (@RudyHavenstein) August 7, 2015

Equity markets in turmoil… Small Caps broke…

And Futures show the big drops…but Europe-based drift higher…

  • Dow down 7 days in a row – first time since Aug 2011
  • Dow down 800 points in 3 weeks – worst run since Aug 2011

Note – Death cross (50DMA crossing below 200DMA) looms…

The S&P was held above its 2014 close and the 200DMA (2073) was very aggressively defended… thanks to a VIX clubbing…VIX ended the day lower!!! bwuahahahah!!!

The ramp effort broke the markets…

NYSE’s direct feed clock just went whack – slowing dropping 10,000 micros over 15 minutes: pic.twitter.com/pTkuSg2kYj

— Eric Scott Hunsader (@nanexllc) August 7, 2015

  • Biotechs down 9.2% – biggest weekly drop since Aug 2011
  • Media down 8.4% – worst week since Aug 2011
  • Energy down 2.7% – down 13 of last 14 weeks
  • AAPL down 5.1% – worst week since Jan 2014; worst 3 weeks (-11%) since Jan 2013

Catching down to credit…

VIX up 19% – biggest weekly jump since Jan 2015 before the gapping effort down at the close to rescue stocks…

In Bond land…

  • 2Y Yield rose 6bps – biggest jump since June 2015 (near 4 year highs)
  • 30Y Yield down 5 of last 6 weeks (40bps biggest drop since Jan 2015)

  • 2s30s Curve down 14bps – biggest weekly flattening since April 2013
  • 5s30s Curve down over 9% – biggest weekly flattening since Sept 2011

The Corporate (IG and HY) Bond market is not happy…

  • HYCDX +40bps in 3 weeks – worst run since Dec 2014, highest risk since Dec 2014

  • HYG down 1.25% to lowest since Nov 2011 (worst 3 week run since Dec 2014)

20150807_EOD1_0.jpg

Commodity Carnaged…

  • Crude down 7.0% – down 6 weeks in a row (28% drop) to 5mo lows
  • Copper down 11 of last 12 weeks – lowest since July 2009
  • Silver Up 0.6% (before post-close slide) – best week in 3 months, breaks 5 week losing streak
  • Gold could not hold green – extends losing streak to 7 weeks

But not everything was down…

Note that Oil and stocks have become highly correlated once again…

As Crude was clubbed back to a $43 handle close…

Ironically, FX markets were actually relatively quiet (at least in the majors)…

Although EM saw some pain (from Ruble to Real…)

Charts: Bloomberg

Bonus Chart: VIX under 14 and CNN Fear-and-Greed Index collapses to 10!!

Original Article: http://www.zerohedge.com/news/2015-08-07/markets-turmoil-dow-suffers-worst-streak-2011-yield-curves-collapse

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