The Aftermath – Surveying The Wreckage From Last Week’s Market-nado
The last two weeks have been unprecedented for any number of reasons – trading ranges, fund blow-ups, basis dislocations, correlation-one regime, no safe harbor – but aside from being the fastest collapse from a peak into bear market in US history…
There are a number of other WTF charts that show what just happened from 30,000 feet…
The bond market’s range this week was the largest ever…
And despite the massive liquidity, the money markets appear extremely stressed…
And market functioning in credit-related bond ETFs broke…
The market has swung from expecting nothing to demanding 100bps of rate-cuts next week by The Fed…
Bonds provided no ‘hedge’ this week as combined bond and stock losses were the worst since Lehman…
And aside from the broken market function, market internals are almost unprecedented (as Dana Lyons shows below)…
NYSE New Lows Hit A New High
CBOE Equity Put:Call Ratio Hits Highest Level Since 2008
After Multi-Decade False Breakout, Value Line Geometric Composite, i.e., the “Median Stock,” Now Down 40% To 7-Year Lows, Retracing 50% Of 2009-2018 Rally
Likewise, 3 Weeks After False Breakout To All-Time Highs, Europe’s Stoxx 600 Now At 7-Year Lows, Retracing 50% Of Post-2009 Rally
Deutsche Bank Hitting New All-Time Low
Muni Bond ETF MUB Hit A 52-Week Low On Thursday…After Hitting 52-Week High On Monday (…same goes for $MBB $LQD $AGG)
Junior Gold Miners 3X Bull ETF $JNUG: 2 Weeks Ago, Printed Multi-Year Highs @ 105; Today, It’s At An All-Time Low @ 7.50
Crude Oil Testing Decade Lows $OIL
S&P 500 9-Day Volatility Index $VIX9D Topped 100, Highest Reading On Record
10-year U.S. Treasury Volatility Index $TYVIX Smashed Its Previous Record High
Crude Oil Volatility Index $OVX Nearly Tripled Its Previous Record High
And finally, if you wanted some even bigger context, the market is starting to reverse the illusion of wealth enabled by central bank largesse over the last five years (during which corporate profits have been flat):
Brace.
Tyler Durden
Sat, 03/14/2020 – 13:30
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