Crude Carnage Kills Equity Dead-Cat-Bounce, Bond Yields Tumble

Chatter of a commodity fund liquidation did nothing to help what everyone hoped would be an excited dip-buying opportunity in stocks today…

 

China stocks extended Monday’s buying panic with CHINEXT now up over 5% in two days…

 

European stocks were higher on the day (though markets closed a long time before the Italian budget headlines hit)…

 

Quite a significant China outperformance in the last week…

 

With everyone primed for a bounce (pre-market futures signaled it after China’s exuberance and trade headlines), it didn’t happen…

 

Trannies managed to get back to even on the week briefly before fading fast after Europe closed…

 

The liquidation in crude certainly did not help stocks…

 

Small Caps suffered a ‘death cross’ today… (the last death cross was Sept 2015, which did not end well for the bulls)…

 

The Dow managed to cling on above its 200DMA, but all the other major US indices are below that key technical level…

 

AAPL tumbled back below its 200DMA…

 

GE stock had its best day in 9 years today… but GE bonds did not…

 

FANG Stocks bounced off the opening drop but ended unch…

 

Having taken the day off to remember Veterans yesterday, bond traders were back and they were buying… The belly of the curve outperformed…

 

10Y Yield tumbled to two-week lows…non-stop slide since The Fed

 

Inflation Breakevens collapsed further, catching down to WTI…

 

The dollar drifted lower on the day…breaking a 3-day winning streak

 

Cable popped and dropped as hopes for a Brexit deal once again crashed on the shores of reality…

 

Offshore Yuan squeezed higher on the day after tagging 6.97 and headlines of big banks dumping dollars (under orders of PBOC)…

 

Spot the odd one out in commodity-land…

As UBS points out:

“There are also speculations that the move lower could have been caused by redemption ahead of the year-end cut off of the 15th November and that a large hedge fund had about 50k lots to liquidate. Considering that the sell off resumes as I write, it might have just be the product of someone’s imagination.”

WTI Crude collapsed for the 12th day in a row – another new record – crashing on Saudi production data (biggest daily drop since Jan 2015)…

Brent is down 24% from October highs…

Bloodbath…

In case $54.75 (lows today) is too rich still for your blood – how about some Western Canada Select Crude – which traded at a $15 handle today…

 

And notably WTI priced in silver has tumbled at key resistance…

 

And Silver at its cheapest to gold since 1993…

 

In case you’re thinking of buying the dip in WTI? It has never, ever, been more oversold…

And oil vol has exploded…

 

And finally, in case you missed it last night, Japan has managed to break another record for extreme monetary policy malarkey – with the BoJ balance sheet now bigger than the country’s GDP…

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