Two clips for the price of one today...
Official Trailer Release: The Bursting.Coming to a market near you. Rated R.Release date: TBD. pic.twitter.com/jwPNzuLoT4
— Sven Henrich (@NorthmanTrader) March 8, 2017
SPOTTED: Complacency. pic.twitter.com/TMrYGJgfGt
— Sven Henrich (@NorthmanTrader) March 8, 2017
So let's count the breaks - first macro data, then VIX, then Emerging Markets, then Copper, then High Yield Credit, and now Crude - all snapped in the last month as stocks kept rising.
The last few days have seen everything sold as it seems a major tightening/derisking is occurring...
The post-Trump-Speech panic-bid in stocks, smashing The Dow through 21,000 (and 21,100) and proving how awesome the world is.. is almost gone.
Small Caps and Trannies gave up their gains on Monday, and now the S&P has erased the exuberance (thanks to oil's plunge)... 3 day losing streak in S&P and Dow and weakness into the close - not 'normal' - longest losing streak since right before the election
This 5-day decline - as small as it is - is the largest since right before the election.
Notably this decline is not being accompanied a major surge in shorts - i.e. its not building ammo for a squeeze
Energy stocks tanked today and along with Utes remain the biggest losers post-Trump-Speech...
CAT stumbled hard after being accused of cheating to maintain its stock price... what gave regulators that idea?
Risk Parity funds continue to delever (4th day in a row) - the worst drop of the year...
Which is driving bonds and stocks lower in price...
REITs are down for the 7th day in a row...
Notably something is snapping in the VIX complex...
VIX has been decoupled from equity exuberance for a month...
VIX Call (bearish stocks) volume has soared...
VIX Futures Open Interest reached a new record high...
And while hegies have swung back to near record short VIX (bullish stocks) positioning, Asset Managers have torn up their record short VIX positions...
Overnight weakness lifted 10Y yields to 2.58% and 30Y 3.17% (before a solid 10Y auction sent yields lower into the close) - but still higher on the day...
The USD surged on the day back to the seemingly Maginot Line of where the USD was when the Fed hiked in December...
And the Loonie was crushed...to its weakest since 2016
March has been a bloodbath for commodities...
Gold continues to outperform Silver...
WTI and RBOB plunged today after a quick algo ramp after the DOE inventory/production data...April WTI just tested to $50.05...
Gartman did it again...
This is the worst day for USO (Oil ETF) since October. About 220k puts on the U.S. Oil Fund (USO) changed hands, compared with a 20-day average of 47k and 57k calls traded today.
Finally we note that Bitcoin tumbled back below Gold overnight on China trade and Bitcoin ETF anxiety...