'Goldilocks' Is Dead - Stocks Plunge Most Since Lehman Before Sudden Buying-Panic

By Tyler Durden of ZeroHedge

Friday, February 9, 2018 5:59 PM EDT

Remember January's "Goldilocks" market?

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Well it's gone...

Video length: 00:00:03

The Short-Vol trade implosion has now spread to the rest of the world and all other asset classes.

China had one of its ugliest weeks ever...

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Europe was ugly...

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But US equities were a bloodbath...even wuith the sudden mysterious buyer of last resort who panic-bid stocks up (after the S&P broke below its 200DMA)...

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Dow futures were lifted 100 points off the lows today...

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Also of note is that this panic-bid lifted the major equities out of correction...

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Stocks were on target for their worst week for US equities since Lehman in Oct 2008... (worst 2-week drop since Feb 2009)

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But after the S&P hit its 200DMA, everything bounced miraculously...

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The Dow saw well over 12,000 points worth of intraday swings this week...

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This the worst swing in momentum... ever...

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And the biggest swing in equity flows ever...record inflow 2 weeks ago to record outflow from equity funds this week

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Risk started to spread to other asset classes too...

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The biggest drawdowns so far:

XIV (Inverse VIX ETF) -96.5%
Bitcoin -65% (from Jan highs)
China 'Big Caps' SSE50 -15%
Shanghai Composite -14.6%
WTI Crude -12.9%
Nikkei 225 -12.6%
Dow -12.2%
S&P -11.8%
Nasdaq -11.7%
DAX -11.6%
FANG Stocks -11.1%
EM Debt -9.9%
EU Stocks (BE500) -8.7%
Mexico Stocks -8.1%
30Y UST Futures -7.7%
Brazilian Real -6.3%
Risk Parity Fund proxy -6.2%
HY Bonds (HYG) -4.5%
Gold -4.2%
Euro -2.5%
Offshore Yuan -1.9%

This is the worst 10-day drop for aggregate bond and stocks returns since Feb 2009...

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Credit markets started to scream today as spreads spiked...

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Flashing another big red flag that this is far from over...

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Lots of chatter about how "bonds are blowing out" and driving equities lower... well no! only the 30Y is wider on the week! and the short-end is well lower in yield on the week...

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The key that is crushing stocks is the 2.85% region...

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The Dollar Index was up most in 2 months this week, hovering at pre-Mnuchin Massacre levels...

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Some crazy moves this week in Offshore Yuan...

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Dollar strength sent commodities lower on the week with crude and copper the biggest laggards...

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(NOTE WTI futures were hit every day this week around the US cash open)

WTI dropped below $60 and broke below its 50DMA...

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Cryptos actually rebounded notably in the second half of the week after the US regulatory hearings went better than expected, with Litecoin leading...

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