Carnage: Worst Week For Stocks In Years While VIX Soars

Only one thing seemed appropriate...

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The mainstream media nailed this last week or two... (h/t @Stalingrad_Poor)

China's worst week since July - closes at 5 month lows
Global Stocks' worst week since May 2012
US Stocks' worst week in 4 years
VIX's biggest weekly rise ever
Crude's longest losing streak in 29 years
Gold's best week since January
5Y TSY Yield's biggest absolute drop in 2 years

Did you get the message Fed?

THE CLEAR MESSAGE FROM THE MARKETS IS - HIKE RATES AND YOU'RE DONE, GIVE US QE4 OR IT'S ALL OVER!!!

So let's start with stocks...

Bloodbathery... This was the worst week for global stocks (MSCI World) since May 2012.

And the worst week for US equities since November 2011...

Futures show the pain started with China PMI, then dumped as Europe collapsed, then there was no help from the machines as gamma was so imbalanced...

Of course we saw The BoJ in the house to help squeeze stocks with some USDJPY crushing...but that only worked for the small caps (easiest to squeeze)... and then it all collapsed...

Putting these moves in context, the red lines show how long since the US Majors are unchanged...

Dow enters correction... this was the 9th largest point drop in the history of The Dow...

Financials and Energy were monkey hammered this week (as both were completely decoupled from their credit markets)...

Financials crash...

And surprise!!! Energy stocks collapse to credit...

Who could have seen that coming?

No brainer: short energy stocks, long credit pic.twitter.com/rC05G32OkS

— zerohedge (@zerohedge) August 11, 2015

Carnage in AAPL slammed the Nasdaq...

Since QE3, all but The Nasdaq are now red... (and Nasdaq is collapsing fast)...Transports down almost 10% since the end of QE3!!

VIX exploded this week with the biggest jump ever...

And The VIX ETF saw its biggest 2-day rise since 2011 (no wonder with 61.7mm shares short against just 60.6mm outstanding)

As VIX catches up to credit risk...

and before we leave stock-land, here is perhaps the 'spookiest' chart... a Fibonnacci 61.8% extension of the 2007 high to 2009 lows 'nails the top' for now... (h/t @allstarcharts )

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OK... so let's look at bond-land. Treasury yields collapsed this week with 10Y nearing a 1 handle... 5y yield down over 17bps is the biggest absolute drop since September 2013