It is the 23rd of October 2019

Dead-Cat-Bounce Saves Stocks From Bankmageddon

Are the "fiction peddlers" winning?

 

Since the "great" jobs report, stocks are tanking, the dollar has roundtripped, and bonds & bullion are surging...

 

On the day, Nasdaq was the worst with FANGs FUBAR. Note that Stocks bounced off the European Close and the NYMEX Close...and Trannies made it green

 

Dow Futures dropped almost 500 points from overnight highs before a 250 point ramp in an hour shaved half the losses...

 

The almost standard buying panic was back in the last hour as USDJPY spiked but bonds were not buying it...

 

AAPL was mega-ramped to run friday's VWAP levels...

 

Financials (and homebuilders) are collapsing year-to-date...

 

As US bank risk continues to surge (yes contagiously)...

 

With energy stocks plunging after Chesapeake denied bankruptcy (while its bonds didn't)...

 

As FANGs have crashed over 13% in the last 4 days - worse than August's Black Friday plunge and the most on record...

 

As "Most Shorted" has collapsed since The Fed ended QE3 to 2009 lows...

 

Credit contionues to crumble to 2009 levels and the QE3 overvaluation is being unwound...

 

Treasury yields collapsed today...

 

With 5Y breaking below its 3-year channel... the lowest close in 5Y since June 2013

 

The USD was dumped again led by Swissy (intervention) and JPY strength...

 

Gold and Silver soared today as Copper and Crude faded...

 

With WTI ending back below $30...

 

And Gold pushing above $1200.. to six month highs...Today was gold's biggest single-day rise since Dec 2014...and the biggest 6-day gain since Oct 2011.

 

Finally, for anyone "hoping" that this is nearly over... it's not! There is no signs of capitulation or panic - the S&P 500 SKEW index (tracking bets on extreme outlier moves) has plunged back towards 8-month lows as it is increasingly clear that investors are derisking, unwinding actual exposure as opposed to hedging for a short-term dip (Equity weakness and SKEW collapse implies lifting hedges and reducing exposure overall)..

 

On the other side of the coin Gold 1M skew has flattened significantly in recent weeks due to strong call buying, and skew is now near its most inverted in almost 5-years...

 

 

Charts: Bloomberg

Bonus Chart: It seems US banks have collapsed far more than CAD banks - we suspect this will revert...










==> Source: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2016/02/08/20160208_eod19.jpg

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