Aaaaaand, it's gone!

Global capital markets are down five weeks in a row, losing just under $9 trillion - the biggest, fastest drop since Lehman (around $8.2 trillion from global equity markets).

Chinese stocks managed to end the week green thanks to numerous National Team interventions.

European stocks ended the week red (down 4 of the last 5 weeks) to the lowest level since December 2016... with DAX worst of all (worse than Italy).

European banks were ugly led by Deutsche Bank.

US Equity markets closed the week in the red for the year (but the rest of the world also continued to collapse).

Buy the dip and sell the rip...all major US equity indices were red on the week.

Another ugly open, immediate ramp fest and puke...

Futures show the complete picture of chaotic lower highs and lower lows...Octoberfest... was full of dead cats

The S&P 500 had dropped 15 times this month. That was the most for a full month since October 2008, when the world's biggest central banks cut interest rates and U.S. money-market funds got a bailout.

It's been ugly:

• Dow down 9% from record high (down 4 of last 5 weeks)

• S&P down 10.1% from record high (down 4 of last 5 weeks)

• Nasdaq down 13% from record high (down 4 weeks in a row)

• Dow Transports down 15.2% from record high (down 6 weeks in a row)

• Small Caps down 15.8% from record high (down 6 weeks in a row)

With all the major US equity indices languishing below their 200DMA...

Only the Nasdaq remains green for 2018...

The VIX term structure remains inverted for the 15th day and unusually has re-accelerated without normalizing).

Global systemically important banks had their worst week since March, tumbling for the 5th week in a row to the lowest since Nov 2016...down 30% from their highs.

FANG Stocks were hammered,  for their worst week since March (down 4 weeks in a row) and down 20% from their highs.

• FB -33% from highs (well below 200DMA)

• AMZN -19.75% from highs (closing below its 200DMA)

• NFLX -28.8% from highs (closing below its 200DMA)

• GOOGL -16.4% from highs (closing below its 200DMA)

Financials are decimated...erasing all the gains since Trump was elected.

The biotech bust continued with the worst week since April 2016 (down 4 weeks in a row) and down 15.4% from the highs.

Semis slumped 6% on the week (5th weekly drop in a row) to lowest since Sept 2017 and are down 21% from their highs.

Homebuilders hemorrhaged.

We note that the tech/financials relationship with Treasuries remains broken.

Treasury yields tumbled today (led the belly again) as there has been a notable decoupling between the long-end (underperforming) and the belly (5s and 7s).

This dramatically steepened the yield curve (5s30s steepest since April 2018).

HY Bonds puked this week.

The dollar surged for the 4th week in the last 5 (despite a big reversal today), closing at its highest since May 2017.

PMs managed modest gains on the week, despite dollar's gains, as copper and crude slumped.

Gold rose for the 4th week in a row.

Finally, we leave you with this little beauty from Deutsche Bank.

Let's hope it's different this time.

However, the last word goes to Glusdkin Sheff's David Rosenberg...

Go ahead, blame Powell. Don't tell anyone that foreign buying of Treasury debt has been cut in half this year and keep it a secret that the dollar share of world FX reserves has shrunk to a 5-year low of 62.5%. The USD role as the reserve currency is on its last legs.

— David Rosenberg (@EconguyRosie) October 24, 2018