Plunge Protection Team Saves Stocks But Credit, Crude, Cryptos Collapse

800 Dow points - !!!! Remain calm! No wonder The PPT was called in...

But, but, but... the US economy is extremely strong (ignore the 4.4% crash in durable goods orders and collapse in housing), this weakness in stocks (remember the stock market is not the economy - when the former goes down) is all exogenous - blame them!:

Blame China - Huawei exec arrested at a particularly inopportune time for the trade truce

Blame Russia - Not acquiescing to OPEC's or Trump's demands to cut crude production

Blame Britain - Just get it done Theresa!! Forget what the people want!

Blame Italy - Why don't the democratically-elected leaders just fold, slash their deficits, and maintain their nation's march into oblivion?

But definitely don't blame The Fed for tightening financial conditions into a slowdown (as they desperately tried to keep the delusional shell game of "well they wouldn't be hiking rates if everything wasn't awesome").

 

China stocks did not like US arrest of Huawei exec...

 

And while initially slow on the uptake, Offshore yuan tumbled too...

 

Europe was a bloodbath...

 

DAX tumbled back below 11,000 - its lowest in two years (erasing the post-Trump gains)...

 

And Italian bond yields surged...

 

US Equities crashed at the re-open (after the Bush funeral holiday) last night and saw no bid at the cash market open... but once Europe closed, algos went vertical... and reaccelerated into the close... (from Tuesday's cash close)

 

Stocks ended well "Off The Lows" thanks to a well-placed WSJ article suggesting The Fed could hold in December.

 

A 1600 points swing in Dow futures

Nasdaq was the only index which manage to get green however...

 

Did not hear many people screaming about the algos panic-buying stocks into the close?

S&P and Dow ramped back into the green for 2018...

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