Stocks Suffer Worst Week Of Year Amid Biotech Bloodbath, Commodity Carnage And Bond Buying

Stocks Suffer Worst Week Of Year Amid Biotech Bloodbath, Commodity Carnage And Bond Buying

But “everything was awesome”?

Russell 2000 -3.1%

– worst week since Oct 2014 (Bullard)

Dow -2.8%

– worst week since Dec 2014

S&P -2.1%

– worst week since Jan 2015

Trannies -2.8%

– worst week since Mar 2015

Nasdaq -2.2%

– worst week since Mar 2015

Who is to blame for all this?

Leaving The Dow comfortably red year-to-date…

This is notable;

VIX was pressed notably lower into the close and stocks went nowhere

, either Kevin Henry just lost his mojo OR traders are unwinding hedges and underlying exposures at the same time. In other words, derisking in size!


The Nasdaq tumbled to its 50DMA, Small Caps broke below 50DMA & 100DMA, pressing 200DMA, S&P broke its 50DM And 100DMA, pushing towards its 200DMA, Dow smashed below its 200DMA, Trannies back near 9 month lows.

Ugly day…


Biotechs worst week/day in 3 months

Buggered; 50 Biotech names (1/3rd) dropped over 4%…

After Biogen was battered, down 22% (worst day since July 2008)…

Treasury yields plunged on the week (except 2Y which inched higher);

30Y yield’s biggest drop since March

The massive flattening in the yield curve (2s30s -27bps) is the biggest 2-week flattening since Sept 2011 (and biggest weekly drop since The Taper Tantrum)…

The Dollar has been relatively quiet for the last 3 days as AUD plunges and EUR strengthens…

Commodities were whacked all week but Friday afternoon saw gold & silver bid as Crude tumbled to 4-month lows…

Crude crashes for 4th week in a row (down 20%)…

Commodity carnage, year-to-date (except higher gas prices!!)…


On the week: Bonds good, Stocks bad, Gold ugly

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Stocks Suffer Worst Week Of Year Amid Biotech Bloodbath, Commodity Carnage And Bond Buying

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