The streak is over! US equities suffered their biggest Tuesday loss in over 6 months today. Despite the same valiant attempt to ramp stocks after a weak open (using JPY and VIX) as yesterday, Turbo Tuesday turned out to be tepid tumbling Tuesday as high-beta hopes were dashed amid little to no macro or event risk news. Yesterday's dead cat bounce in yields appears to have been just that and stocks tracked them lower all day (and disconnected from USDJPY mid-afternoon as it was unable to break 101.50). The Russell was the worst performer (along with NASDAQ) as the broad index closed below its 200-day-moving-average for the first time in 18 months (after 7 false alarms in the last 2 weeks). Away from stocks, credit spreads widened, bond yields dropped, the USD sold off 0.5% to 19-month lows, commodities wer generally flat (gold +0.65% on the week), and VIX closed +0.5 vols near 14. Welcome to "Torpedo Tuesday"
The Dow is down 0.9% year-to-date and down 7.12% if it were not for Tuesdays…
Stocks dipped-and-ripped again at the open – but failed this time… and despite best efforts to rally into the close – ended weak
The Russell 2000 closed below its 200DMA for the first time in 18 months… (after 7 false alarms in the last 2 weeks)
Stock tracked the long-bond all day
And mostly clung to USDJPY til it hit 101.50
Notice they tried desperately to ramp stocks with a VIX slam after Europe's close (and failed)…
As the USD Index dropped themost in a month and fell to 19 month lows... as Goldman said "Price action has gone decidedly against us on our strong Dollar call… and blamed China for USD selling"
Twitter was twatted…
And oddly caught down almost perfectly to Pandora's weakness off the Tarullo top…
Charts: Bloomberg
Bonus Chart: "Costs"
Bonus Bonus Chart: The Top 10 Wall of Shame TWTR analysts…
via Zero Hedge http://ift.tt/1jxQsXh Tyler Durden