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Remember the trade war shots fired yesterday that prompted a panic buying episode after a brief dip overnight, well the same thing happened again today...

China was a bloodbath...

But, once again the smart American investing public bought Small Caps with both hands and feet (because hey, small caps are more domestically-biased and will therefore be immune to trade wars with China... right?) but The Dow ended down for the 6th day in a row - the longest losing streak since March 2017...

Futures show the selling bouts overnight as first US then China retaliated...

 

As yet another massive short squeeze sparked a buying scramble after Europe closed...

 

But even with the manic BTFD, The Dow ended red for 2018...

 

 

Forget FANG, FAANG, its all about NFLX...

 

Netflix shares crossed $400 for the first time ever today... (prices have been accelerating faster than exponential in the last 6 months)

Nothing to see here... just the most overbought ever...

 

And while NFLX soared, NYSE FANG+ index tumbled... (this was still the worst day in a month for FANGs)

 

And Tech underperformed financials...

 

But the biggest banks are in trouble... SIFIs now in bear market territory...

 

Emerging Market stocks were monkeyhammered today

 

Treasury yields tumbled overnight and rebounded modestly from the European open...

 

10Y Yield touched 2.85% overnight...

Yield curve largely traded sideways today with 2s30s down very modestly.

 

The Dollar Index rallied to new cycle highs overnight as Yuan tumbled

 

 

Cryptos extended their gains from yesterday with Ethereum now up almost 8% from Friday's close...

 

Copper was clubbed like a baby seal after the trade war talk ramped up, but dollar strength and global growth concerns dragged all commodities lower...

 

WTI slipped a little further today (ahead of API data tonight) not helped by OPEC reports of a 147% 'compliance' with production cuts...WTI was unable to break above $65...

 

PMs were lower on the day, legging down around 730ET...

 

And finally, we note that 'systemic risk' is rising as cross-asset correlations are surging once again...