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Stocks Slump, Dollar Jumps After China Sends Message To Fed

But but but Tim Cook said AAPL was "optimistic" about China!!!

 

China started the shenanigans by devaluing the Yuan fix by the most since the August collapse...sending a loud and clear message to The Fed - if you normalize rates (and strengthen the USD) we will unleash 'wealth-destroying' volatility...

 

The message is being heard among the pajama traders...

 

European stocks stumbled once again as Italian bank risks surge...

 

"Most Shorted" stocks fell for the 2nd day in a row - the biggest 2-day drop in 3 months...

 

Trannies & Small caps bearing the brunt of the most shorted weakness...

 

With Nasdaq leading the way (down over 6% year-to-date), S&P 500's 2-day tumble has plunged it back to the verge of red for 2016 (joining Small Caps yesterday). Gold (up 20.7%) and the Long Bond (Up 7.8%) remain the best performers year-to-date as The Fed rate-hike appears to have sparked a flight to safety not a rush to recovery...

 

Just as S&P 500 cash nears 2043.94 (remember 2100?), VIX was smashed lower to save the world...

 

But Bonds & Bullion remain 2016's biggest gainers...

 

As perhaps fear of the "W" remains...

 

It seems we better get Tim Cook on CNBC again tonight...

 

Financials continue to slide and Energy stocks ended notably lower despite a small green close in crude...

 

HYG (high Yield bonds) broke back below their 200DMA..

 

Treasury yields ended the day lower by in a very narrow range

 

The US Dollar rose again (2nd day on a row after 6 straight days lower) led by commodity currency collapse (CAD/AUD down over 2% on the week)..

 

Crude managed a panic-bid into the NYMEX close to end green but in general commodities weakened with the stronger USD (copper, iron ore, rebar were hammered)

 

Charts: Bloomberg