DeFANG’d: Dow Dumps Into Red For 2018 As Techs Tumble

It was hard for asset-gathering, commission-takers to argue this was “nothing”…

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While all the attention was on Facebook, Bloomberg notes there was a little more going on that spooked markets…

“In addition to FB, FANG & Trump/Mueller, Wednesday’s FOMC raises possibility of four rate hikes. AAPL threatening supply chain if going w/ their own screens. To a lesser extent, Japanese polls showing Abe’s popularity flagging in light of patronage scandal.”

The day started off poorly with European stocks triggering a death cross…

 

But futures show that US equities got whacked on Facebook and Digital Taxation headlines… (and of course the standard late-day ramp)

 

Cash indices were all ugly…

 

The Dow Industrials and Transports are both back in the red for 2018… (NOTE by the close, Trannies managed to scramble back barely green but Industrials did not)

 

Nasdaq suffers its biggest drop since the Feb crash (the week after the biggest retail fund inflow into Nasdaq ETFs since the peak in 2000)…

 

Some not able ‘breaks’ today…

  • Nasdaq 100 broke its 50DMA

  • Dow broke its 100DMA (and broke below its Fib 38.2% retrace lows)

  • S&P broke its 50DMA and tested down to its 100DMA

  • VIX broke above its 50DMA

  • Small Caps (Russell 2000) broke below its 50DMA

  • Facebook broke its 200DMA

Faceplant! – first close below 200DMA since 1/5/17…

 

deFANG’d….

 

Dow broke a key support level…

 

FANGMAN Stocks were taken out back and shot…

 

With Facebook the stand-out for the monkey-hammering…FB now down 3% YTD (but don’t worry, NFLX is still up over 60%!)

 

Bank stocks have erased all the post-Payrolls spike…

 

VIX surged up to almost 22 before being hit back below 20…

 

And The VIX term structure inverted once again…

 

Nasdaq’s ‘VIX’ was the biggest jumper among the majors..

 

Bonds were bid from just before the US open, but reversed after Europe closed to end the day slightly higher in yield (extremely modest moves given the dump in stocks)…

 

 

The Dollar Index slid from the moment Europe opened (pushed their by ECB-comments driving EUR higher and Brexit comments on Cable)…

 

Cable managed a notable jump on hopeful Brexit transition deal…

 

Gold managed to make gains on the day as the dollar dipped. Silver was unch but crude and copper were lower…

 

Cryptos ended lower than their Friday close after Bitcoin briefly ramped back into the green after G-20 relief, but Trump’s executive order on Venezuela’s Petro sparked more concerns…

 

S&P tumbled back to meet gold as equal best performing asset class this year…

 

As a gentle reminder, one wonders if this sudden stock smackdown is a little warning message to Powell not to be too hawkish this week?



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DeFANG’d: Dow Dumps Into Red For 2018 As Techs Tumble