Stocks Suffer Worst Week Of Year Amid Biotech Bloodbath, Commodity Carnage, & Bond Buying
This seemed appropriate…
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…
AMZN retraced over half its overnight gains…
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…
Charts: Bloomberg
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Stocks Suffer Worst Week Of Year Amid Biotech Bloodbath, Commodity Carnage, & Bond Buying
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