Cromnibust! Hindenburg Cluster Grows As Crude, Credit, & US Government Credibility Crash

Because everyone knows…

 

Yet another Hindenburg Omen today… (note yesterday's very late crash in stocks managed to invalidate one of the indicators factors but the cluster remains unviolated overall)…

 

With America's politicians apparently unable to agree on the Cromnibus Bill and government shutdown looming, weakness in crude oil, contagion in high-yield credit, and an extremely aggessive 30Y bond auction trumped the retail sales headlines (massively seasonally-adjusted as they were).

 

There was very significant volume in the Dec S&P 500 e-mini contract today…

 

The key for today's markets was to ensure The Lending Club IPO broke for trading successfully… once that was achieved, this happened…

 

As WTI broke below $60…

 

VIX broke 20…

 

And Energy stocks pumped-and-dumped back down to energy credit… as HY Energy hit 950bps

 

Stocks did their usual bounce in the last hour but even that failed as even spurious Japanese headlines juicing JPY, stocks sold off…

 

On the week, Energy continues to lag with only utilities green…

 

Treasury yields rose on the day at the short-end but gave a lot back when the 30Y auction was so well bid ex dealers…

 

 

The USDollar gained ground after 3 days of weakness but remains down around 1% on the week. JPY was a big mover today as it tried to rescue stocks…

 

Copper, Gold, and Silver pretty much flatlined on the day as crude dead-cat-bounced off $60 early but broke late…

 

 

Quite a day across asset classes…

 

Charts: Bloomberg




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