There is one major problem when the entire market is a rigged casino, favoring degenerate gamblers over traditional investors: at the first whiff of trouble everyone bails.
In the past week,over the past week or so investors got a whiff of trouble, and the degenerate gamblers, loaded up to the gills with record margin debt hightailed it out of the casino, leading to the largest weekly equity fund outflow in over two years! Add some record leverage to the equity withdrawal, continued EM turbulence, ongoing Japanese deflation exports, oh and of course the ongoing Fed taper which has been solely responsible for all S&P gains since 666, and suddenly you have all the ingredients for a broad market crash.
In Europe, Germany is down 0.7%. Italy is off 0.3%. UK stocks are down 0.18%.
Japan fell 0.48% and Hong Kong fell 0.62%.
US futures are much lower.
The wild volatility continues, with markets set to open well in the negative wiping out all of yesterday's gains and then some, only this time the catalyst is not emerging market crashing and burning but European inflation, where the CPI printed at 0.70%, dropping once again from 0.8%, remaining under 1% for the fourth straight month and missing estimates. Perhaps only economists are surprised at this reading considering last night Japan reported its highest (energy and food-driven) inflation print in years: so to explain it- Japan is exporting its "deflation monster", Europe is importing it.
Japanese stocks are back at fresh 2-month lows with the Nikkei 225 under 15,000 (down over 400 points from day-session highs) and testing debt-ceiling lows.
With China about to go dark for a week for the lunar new year, this could get interesting real quick.