Biotech-Buying Spree Helps Stocks Shrug Off China Crash, Commodity Collapse, & Credit Crunch
By Tyler Durden
There is some serious turmoil going on in credit, commodities, and FX.. but stocks shurugged it all off because jobs were shitty enough to warrant a bid??
China stocks crashed…
China Commodities collapsed….With Iron Ore now down 22% from the meltup highs, entering a bear market…
And Steel Rebar down 25%, extending losses in the US session…
Stocks were caught between a rallying JPY carry trade and a tumbling crude correlation…
And traded in a very narrow range around VWAP all day…
Dow ended the day red and Trannies cluing to unch at the close…Seems like the momnent Europe closed everything was awesome…
And VIX was slammed to keep S&P off the redline for 2016…VIX selling has been non-stop since Payrolls dats
Credit markets continue to weaken (HYG down 6 days in a row), decoupling from stocks once again…
Investors sought the safe haven of Biotech stocks…best day in a month…
As LendingClubbed like a baby seal…
Treasury yields dropped, decoupling lower from stocks…
The USD Index rose for the day in a row, driven by JPY's tumble (3rd biggest drop of the year)…
Despite the modest USD gains, commodities were monkey-hammered as China contagion spreads…
- Gold's worst day in 6 weeks
- Silver's worst day in 6 weeks
- Copper's worst day in 4 weeks (down 6 days in a row)
- Crude's worst day in 4 weeks
Finally, crude gave back all its Saudi headlines gains and stalled at what appears a key band of support…
Charts: Bloomberg
Bonus Chart: US remains the most expensive equity market by at least 1.7x turns…
Source: Biotech-Buying Spree Helps Stocks Shrug Off China Crash, Commodity Collapse, & Credit Crunch
