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Yesterday was the first day of trading in 2016. It wasn't pretty. In case you missed it, there was a broad selloff in global equity markets.

INSTANT INSIGHT | Central Planning, China, & the Russell 2000  - China cartoon 01.05.2015

First up on our red data radar screen, China's Shanghai Composite Casino. It dropped as much as 7% on the day. In response, the Communist politburo responded with a full-court press. Here's what Hedgeye CEO Keith McCullough had to say about it in a note to subscribers this morning:

"The communists did everything they could to centrally plan China’s markets overnight – stopped the Yuan at 6.516 and the State bought stocks! Lol – that went over as well as it did in AUG didn’t it? #GrowthSlowing and #Deflation remain the gravity point."

Oh, and let's toss in the Russell 2000... 

"Liquidity-traps and US domestics slowing remain great reasons to be out of or underweight small caps – RUT -2.3% yesterday (vs. SPX -1.5%) and is now -14.4% from the all-time #Bubble high we called in July. We're reiterating sell on bounces." 


INSTANT INSIGHT | Central Planning, China, & the Russell 2000  - Russell cartoon 12.02.2014

We'll conclude with a parting thought to Wall Street consensus which was screaming "buy the dip!" yesterday:

"Buying the dip" has only worked in a narrow group of momentum stocks. The rest of the market is crashing.