Stocks Have Worst Start To Year Since 2008

Despite the best efforts of 330RAMP CAPITAL, US equity indices ended the first trading day of the year with the biggest loss (on that day) since 2008. Led by weakness in the high-beta indices as Trannies tumbled their most in 4 months and the S&P’s biggest daily downswing in over 3 weeks. On a side-note, gas prices have never been this high on the first day of the year. VIX closed higher once again as stocks began to catch down to it’s recent warnings. Bonds rallied from the open this morning (with 10Y 6bps lower in yield from its opening print) with 10Y back under 3%. EUR weakness drove the USD higher (but JPY strength weighed on stocks). The biggest moves appeared in commodities with gold and silver up nicely and WTI crude down hard… on, and TWTR was up over 6%!



Gas prices have never been higher on the first day of the year…


Stocks were spanked from the panic-buying highs of New Year’s Eve…Notably, the major selling pressure ended when Europe closed. Did we really see a rotation from US equities into European bonds?


So buy TWTR you idiot!!!


VIX pushed higher still and stocks began to catch down…


Despite Treasury strength, Utilities are actually the worst performer off the highs of New Year’s Eve…


Which, perhaps most interestingly, means Utilities are now unchanged from the Taper…


Treasuries rallied from the get-go…


But commodities were the most actuve space today with Gold and silver surging and oil plunging… Gold’s best day in 10 weeks; oil’s worst day in 13 months



and FX markets have had quite a week but it seems the EUR repatriation filled its year-end liquidity needs and is now unwinding (on European bond’s best day in over a year!!)


Charts: Bloomberg

Bonus Chart: Since 2000, there has now been 7 years with a negative first day. Of the previous 6, half ended the year with losses (-10.3%, -13%, and -38.5%)… will 2014 be any different? (h/t @Not_Jim_Cramer)


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