It is the 19th of October 2018

Shocktober Day 2: Stock Rout Accelerates As Bonds, Bullion Surge

It was all going so well...

China was ugly overnight with about 1000 companies halted 10% limit-down...

AsiaPac was a bloodbath... (down 10 days in a row and 27% from the highs)

Europe plunged (led by Italy)...

 

US Futures show the chaos and hopeful rebounds that just kept failing today...

 

Nasdaq flip-flopped desperately around unchanged for much of the day before margin calls hit...

 

Since October began, Trannies, Nasdaq, and Small Caps are down 9%!.

 

S&P is down 6 days in a row - still the longest losing streak since Nov 2016's run into Hillary's victory (which was 9 straight losing days)... and below its 200DMA (first close below since April)...

The Dow was down almost 700 points at its worst and then a headline about a Trump-Xi meeting sparked panic-buying...back above its 200DMA...

 

The Dow ended down 545 points today - Double Top much? The Dow is down 1950 points from its highs last week

 

Nasdaq remains below its 200DMA...

 

Nasdaq 100 on track for its worst month since November 2008...

“There is a tipping point where higher rates start to have potentially a negative impact on growth and on equity valuations,” said Toby Gibb, client portfolio manager at Fidelity International in London. “People have started to get concerned that we may be approaching that level.”

Small Caps are well below their 200DMA and went red for 2018 today...

YTD gains are evaporating...

And Healthcare Sector is now best YTD -outperforming Tech...

S&P Tech closed below the 200DMA - first time since Brexit...

Only 1.5% of S&P Tech stocks are above their 50DMA...

 

VIX reached almost 29 intraday...

 

With the term structure now massively inverted...

 

As Stocks were slammed, bonds and bullion saw safe haven bids...

 

Bonds were bid as stocks skidded...

 

The yield curve flattened notably on the day...

 

The Dollar Index continued to slide to one-week lows...

 

Yuan soared today - interestingly following Mnuchin's face-to-face with the PBOC...biggest spike since August - WTF did Mnuchin say?

 

Cryptos were dumped too as Asia markets opened...

 

WTI Crude tumbled to a $70 handle on inventories and OPEC demand downgrades, but PMs were the big winner...

 

WTI had its worst 2-day drop since March 2017...

 

Gold futures spiked to $1230 today, highest since July (jumping by the most since Brexit), breaking above its 50DMA and the $1200 Maginot Line...

 

Since The Fed hiked rates in September, there's only one asset class in the green...

 

Finally, we ask, are US markets about to start the Great Rotation back into sync with the rest of the world...

==> Source: https://www.zerohedge.com/sites/default/files/inline-images/2018-10-11_12-27-02.jpg?itok=Ai1Dqwu0

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