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Biggest Market Sell Off In Months Coincides With Largest Domestic Equity Inflow In Years (Both Of Which Aren't Saying Much)

Tyler Durden's picture


It is only fitting that the biggest equity sell off in stocks in almost 2 months should coincide with the biggest equity inflow in years (which is not saying much: it is still in a net outflow position for the year). In the week ended January 12, domestic equity funds per ICI saw an inflow of $3,765 million following last week's outflow of $4,229. Yet this still makes it the largest inflow going back to 2009. And with everything now happening in real time, with the market having an attention span measured not in milli but nano-seconds, it will be funny if, should this sell off actually persist into the close (never underestimate the NYU business school students in charge of POMO) flows imply become a tracker of the concurrent week's market move. And yes, bond fund flows in everything but Munis were positive. Non-taxables saw another whopper of an outflow, this time for a total of $2.4 billion. Perhaps it is time for the propaganda crew to give stocks a breather and get the lemmings into the doomed municipals space (where at most recent check Illinois CDS at 280 bps were trading 100 bps wider of mutinous Tunisia at 180).


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Wed, 01/19/2011 - 16:56 | 888140 Caviar Emptor
Caviar Emptor's picture

Send in the clowns

Wed, 01/19/2011 - 18:08 | 888484 RaymondKHessel
RaymondKHessel's picture

Exactly. Time to sell as they are finally luring the suckers in.

Wed, 01/19/2011 - 16:57 | 888146 plocequ1
plocequ1's picture

im listening

Wed, 01/19/2011 - 16:58 | 888149 Cleanclog
Cleanclog's picture

TPTB have been waiting for "retail" to come in.  They can bail now.

Wed, 01/19/2011 - 17:02 | 888168 jus_lite_reading
jus_lite_reading's picture

Shhhhh! Don't tell them! We need the retail suckers to buy so this can finally tank!

Wed, 01/19/2011 - 16:59 | 888155 Cleanclog
Cleanclog's picture

IBM "saves" the  Dow.

Wed, 01/19/2011 - 16:59 | 888157 Caviar Emptor
Caviar Emptor's picture

Wow! Down 11 points! Where was the Ben put? Don't we get paid if the Dow dips?

Wed, 01/19/2011 - 17:03 | 888172 HarryWanger
HarryWanger's picture

AAPL caught a really nice bid in the final two minutes that helped bring SPX off its lows. We have some good data tomorrow which I would expect to be strong enough to regain some of today's losses. But not before we test 1275 level at the open tomorrow. 

Wed, 01/19/2011 - 17:05 | 888185 Caviar Emptor
Caviar Emptor's picture

But wait a minute: isn't that lower then the market closed today? What the hell is going on here! We're not supposed to be Losing money! I want my Congressman on this now!

Wed, 01/19/2011 - 17:07 | 888196 SheepDog-One
SheepDog-One's picture

LOL, Harry back prognosticatin' about 1275 when 2 hours ago he said 1284 would be savagely bid up by the BTFD clowns. Ol 'Slidin Scale' Harry!

Wed, 01/19/2011 - 17:12 | 888216 Sophist Economicus
Sophist Economicus's picture

Distribution is ON.   Now the bulls buy the Slope of Hope all the way down the 10 to 15% decline.   Of course, none will admit it.  All will have sold on Friday....

Wed, 01/19/2011 - 18:10 | 888493 fiddler_on_the_roof
fiddler_on_the_roof's picture

Yes this is what I expect. Let's watch and see.

Wed, 01/19/2011 - 21:14 | 888895 Pure Evil
Pure Evil's picture

Is it possible to have real time charts showing the bloggers with the most junks?

Wed, 01/19/2011 - 17:11 | 888212 Robot Traders Mom
Robot Traders Mom's picture

Serious Question: When was the last time the S&P lost more than 10 points and the total point loss was greater than the point loss on the Dow? Has it ever happened? Fucking weird.

Wed, 01/19/2011 - 17:16 | 888244 Caviar Emptor
Caviar Emptor's picture

Can't speak to the digit, but we've had crazy distortions like this in 09. Don't forget, to the Fed, the Dow is America Inc's headline number. Kinda like a vital sign of the US economy and a reflection of how they're doing their job. So it's more a point of stubborn pride with them than the S&P and Naz which they assume foreigners are too stupid to check

Wed, 01/19/2011 - 17:22 | 888270 Robot Traders Mom
Robot Traders Mom's picture

Agreed completely, but I just don't remember something this weird ever happening. I would bet it has only happened once or twice, if ever. Either way, it's all bullshit.

Thu, 01/20/2011 - 05:42 | 889433 sockcutter moto...
sockcutter motorforker's picture

off topic, "robot trader's mom", but i think he did died

Wed, 01/19/2011 - 18:14 | 888504 El Hosel
El Hosel's picture

  IBM was the reason the INDU held today.... Buy DOG, its a value stock.

Wed, 01/19/2011 - 17:28 | 888303 razorthin
razorthin's picture

when are you assclowns gonna stop playing with fire

Wed, 01/19/2011 - 22:04 | 889027 cclaeys
cclaeys's picture

For once, I agree with you - let them load up all the shitbag leveraged inverse etf's with chumps and then pull the rug...need more mullet in the net before this one tanks, who the fak else they going to sell em to? They will chop this bitch up for awhile - volatility doesn't necessarily equate to tanking - lots of option premium money to be made. 

Wed, 01/19/2011 - 17:00 | 888159 Jason T
Jason T's picture

Now we can call it a top.  Done. Market is done for.

Wed, 01/19/2011 - 17:14 | 888187 plocequ1
plocequ1's picture

If thats the case, I will end my phoney bullish sarcasm. Not that anyones cares.

Wed, 01/19/2011 - 17:15 | 888235 Sudden Debt
Sudden Debt's picture

I'm doing a little checkup for the "market sentiment" numbers.

Can I concluded that your answer is UBERBULLISH?


Thank you, we'll use your answer for the next 20 issues.

Wed, 01/19/2011 - 17:00 | 888160 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

For any free thinking human, this is a living nightmare. Anyone else feel it?

Wed, 01/19/2011 - 17:01 | 888165 jus_lite_reading
jus_lite_reading's picture

Everyday I wake up and feel as if I am living the Twilight Zone. Please, pass me a pair of vice grips! I WANT TO WAKE UP!

Wed, 01/19/2011 - 17:08 | 888199 Non Passaran
Non Passaran's picture

I think I need a drink... Make that two.

Gold held up (good), but what the heck happened to PM miners?


Wed, 01/19/2011 - 18:42 | 888601 El Hosel
El Hosel's picture

 "but what the heck happened to PM miners?"

   They have been down for weeks already... GDX down ( since Dec 7 ) $64 then, $55 now.


Wed, 01/19/2011 - 17:32 | 888327 Chump
Chump's picture


Wed, 01/19/2011 - 21:18 | 888903 Pure Evil
Pure Evil's picture

Nope, I've been drinking the Banana Ben hopium koolaid and the hallucinations are just spectacular!

Wed, 01/19/2011 - 17:00 | 888161 Id fight Gandhi
Id fight Gandhi's picture

We will get a shitty claims number tomorrow and up it will go.

Who gives a shit. Most don't have any shit in which to give.

Wed, 01/19/2011 - 17:47 | 888405 Strider52
Strider52's picture

They could announce a massive asteroid hit in NY, and the stock market would go up.

Wed, 01/19/2011 - 17:00 | 888162 jus_lite_reading
jus_lite_reading's picture

We all know in order for the ponzi to continue, the greater fool must believe he is getting a deal, before prices go HIGHER. So buy now (so the big boys can finally dump!) and pay no attention to the insiders... after all, they are still selling for end of year tax purposes!

Wed, 01/19/2011 - 17:03 | 888177 Caviar Emptor
Caviar Emptor's picture

Why does it feel like the end of the world, the beginning of the apocalypse when the market drops 12 points? 

On CNBS the mood is like a someone died

Wed, 01/19/2011 - 18:51 | 888635 El Hosel
El Hosel's picture


"Why does it feel like the end of the world, the beginning of the apocalypse when the market drops 12 points?"

    WTF!     Well, CNBS is selling "Timmy and Ben fixed it"  the market only goes up. A down day might make some people wonder if the markets really are fixed. Fucking bankers bonuses are secure 400,000 each at Goldman, 330,000 each at JPM... Why in the world would stocks continue higher now?



Wed, 01/19/2011 - 17:23 | 888213 SheepDog-One
SheepDog-One's picture

He's probably thinking of later tonite when Bernanke and Sack come over for another evening of S&M gay partying!

Wed, 01/19/2011 - 17:05 | 888181 Lucius Corneliu...
Lucius Cornelius Sulla's picture

The lemmings have arrived.

Wed, 01/19/2011 - 17:06 | 888184 What_Me_Worry
What_Me_Worry's picture

This may be the first time I actually BTFD.  So, obviously we move lower from here. 

I feel dirty, now.

Wed, 01/19/2011 - 17:07 | 888195 HarryWanger
HarryWanger's picture

Depends on what you bought - Index ETF? AAPL? Max pain for SPX is 1250. If we drop to that level, it will pull in big buyers. Pretty impenetrable floor IMO.

Wed, 01/19/2011 - 17:09 | 888206 SheepDog-One
SheepDog-One's picture

Harry get back in the store room and pack more dildo's for shipment, dip buyers wives dependin on it Harry!

Wed, 01/19/2011 - 17:32 | 888326 razorthin
razorthin's picture


a doodad people actually need

Wed, 01/19/2011 - 17:14 | 888227 mynhair
mynhair's picture

MTU.  Fuk this Amerikan junk.

Wed, 01/19/2011 - 17:43 | 888378 bob_dabolina
bob_dabolina's picture

Let us postulate Harry that your impregnable 1250 gets broken. Than what? Would that turn Harry into a seller or are you one of those guys thatvdoesn't know when to sell?

Wed, 01/19/2011 - 21:21 | 888912 Pure Evil
Pure Evil's picture

Naw, he just find a new SPX floor limit which was unbreakable.

Wed, 01/19/2011 - 18:15 | 888507 fiddler_on_the_roof
fiddler_on_the_roof's picture

Harry is going to get toasted right here in ZH. Atleast RoboTrader started sounding negative on S&P now.

Wed, 01/19/2011 - 23:40 | 889197 onlymyopinion
onlymyopinion's picture

Harry, I hope you're right about 1250.  I will back up the truck (margin included) a load it up.  IMO, 1250 will be the buying opportunity of 2011.  So far, earnings have been outstanding.  Guidance has been much better than expected too. 

Wed, 01/19/2011 - 17:07 | 888197 Caviar Emptor
Caviar Emptor's picture

Misere mei, Deus!

Wed, 01/19/2011 - 17:08 | 888198 Caviar Emptor
Caviar Emptor's picture


Wed, 01/19/2011 - 17:10 | 888207 Ferg .
Ferg .'s picture

Wow . The S&P actually closed down near the lows after a significant intraday decline . The fantastic run of the " buy the intraday dip " strategy finally comes to an end . I'm actually surprised . This market has shown on a consistent basis that it cares little about bad news .

Wed, 01/19/2011 - 17:13 | 888220 SheepDog-One
SheepDog-One's picture

Everyones surprised when the 'bulletproof illusion' starts showing some cracks.

Wed, 01/19/2011 - 17:15 | 888234 mynhair
mynhair's picture

OpEx horsehockey.

Wed, 01/19/2011 - 17:10 | 888208 dabullify
dabullify's picture

FFIV top line light stock down $25

Wed, 01/19/2011 - 17:12 | 888214 HarryWanger
HarryWanger's picture

Was sporting a ridiculous p/e of 78. Getting punished now down 18%.

Wed, 01/19/2011 - 17:14 | 888228 goldmiddelfinger
Wed, 01/19/2011 - 17:15 | 888238 mynhair
mynhair's picture

Habla NFLX?

Wed, 01/19/2011 - 17:10 | 888209 irishlink
irishlink's picture

Watch, China will rally tonight on this big lovein. Then we will rally tomorrow until someone finds another story to scare us all to happiness again! What earnings are up next that might be significant?

Wed, 01/19/2011 - 17:16 | 888242 mynhair
mynhair's picture

TAP reported yet?

Wed, 01/19/2011 - 17:22 | 888273 Maos Dog
Maos Dog's picture


Wed, 01/19/2011 - 21:24 | 888916 Pure Evil
Pure Evil's picture

Didn't you hear, GE just got insider deals with China.

Just Buy The Fucking Chinese Dip!

Wed, 01/19/2011 - 17:12 | 888218 goldmiddelfinger
goldmiddelfinger's picture

And just as the bond market selloff screeches to a halt. Municipals look lip smacking for a trade 

Wed, 01/19/2011 - 17:14 | 888232 SheepDog-One
SheepDog-One's picture

Everyone trying to find the least shit covered chair to grab when the music stops. Whatever. Im loaded on silver, guns, and food. Fuk all else.

Wed, 01/19/2011 - 18:00 | 888449 Strider52
Strider52's picture

the least shit-covered chair. Now that's funny, I don't care who you are.

When the dollar reaches  −459.67°F not much will matter. Go home, load up, and wait for hostile targets. Good to have a clip-loader with you.

Wed, 01/19/2011 - 17:13 | 888222 robertocarlos
robertocarlos's picture

eBay numbers in 60 seconds. To the moon Alice.

Wed, 01/19/2011 - 17:17 | 888249 HarryWanger
HarryWanger's picture

Nice call! Up over 5% on strong earnings. May temper some of the gloom AH.

Wed, 01/19/2011 - 17:21 | 888263 SheepDog-One
SheepDog-One's picture

Ebay, LMAO that dump is goin down the tubes.

Wed, 01/19/2011 - 17:24 | 888283 lizzy36
lizzy36's picture


Wed, 01/19/2011 - 17:26 | 888291 goldmiddelfinger
goldmiddelfinger's picture

FFIV down 20% AH on a miss and a warning doesn't fit with his subjective world view.

Wed, 01/19/2011 - 17:27 | 888301 Rogerwilco
Rogerwilco's picture

LOL -- eBay is now a bellwether for market moves?

Thu, 01/20/2011 - 05:06 | 889421 Arkadaba
Wed, 01/19/2011 - 17:23 | 888276 Id fight Gandhi
Id fight Gandhi's picture

Who uses eBay anymore? They've been giving away free listing to get sellers back. Seems you can piss away money and kick the seller community every time for fee increases.

Wed, 01/19/2011 - 18:29 | 888546 long_and_short
long_and_short's picture

eBay owns PayPal, not just an auction house

Wed, 01/19/2011 - 17:16 | 888231 AccreditedEYE
AccreditedEYE's picture

This is what happens when they leave the intern in charge for the afternoon. This will teach them what happens when they step away from their folding table....

Wed, 01/19/2011 - 17:15 | 888237 Waterfallsparkles
Waterfallsparkles's picture

Seems to me that the Stock Market is alive as long as Steve Jobs is also alive.

Wed, 01/19/2011 - 17:17 | 888247 Sudden Debt
Sudden Debt's picture



Wed, 01/19/2011 - 17:16 | 888241 Sudden Debt
Sudden Debt's picture




Wed, 01/19/2011 - 17:22 | 888271 mynhair
mynhair's picture

PUT this!  You crazy potato.

Wed, 01/19/2011 - 20:46 | 888851 unununium
unununium's picture

I do.  Christ, BAC shareholders are facing an existential threat, you bet I got me some lottery tickets. 

After the crash, saying you knew it was inevitable will not make up for all that dough you lost out on making, if you were not short something.

Wed, 01/19/2011 - 17:21 | 888260 delivered
delivered's picture

Fed provides dirt cheap funds to PDs (the chosen primary dealers).

PDs purchase US debt.

Fed buys back US debt from PDs next day (with commissions attached, no less).

With cash, PDs purchase US equities and ramp prices.

TPTB including the press convince the US public to come into the casino as we have new games for you which are guaranteed winners.

US public enters into the equity market (again) and buys overpriced securities from PDs (as they dump).

PDs make money across the board from fees on debt sales and gains on over priced equities.

By mid 2011, when interest rates have increased, QEII completed, YOY corporate earnings beginning to miss (via margin compression from commodity price increases and the fact that comparisons with one of the worst years on record, 2009, will be over), and the European and US Muni debt problems expanding, the market suffers a major correction.

PDs wait and grab assets at dirt cheap prices. The US public suffers as another enormous transfer of wealth occurs right before their eyes. They vow to never invest in the market again, of course until 2012 when their boondoggled again.

Just the way I see it playing out.

Wed, 01/19/2011 - 18:00 | 888450 Logans_Run
Logans_Run's picture

lather, rinse, repeat!

Wed, 01/19/2011 - 18:13 | 888500 EventHorizon
EventHorizon's picture

I thought the same thing but too early to tell. Financials ultimately have to unload this ponzi shitheap on retail so when people start talking about what their 401ks are doing again look out below....

Wed, 01/19/2011 - 17:21 | 888261 Caviar Emptor
Caviar Emptor's picture


Miserere mei, Deus: secundum magnam misericordiam tuam.
Et secundum multitudinem miserationum tuarum, dele iniquitatem meam.

Wed, 01/19/2011 - 17:22 | 888266 HamyWanger
HamyWanger's picture

-0.11%, this is what you call a "sell off"???

I can't believe the disinformation on this site!

Wed, 01/19/2011 - 17:24 | 888284 mynhair
mynhair's picture

Didn't yer Mom teach you to put a decimal where the sun don't shine?

It was a veritable bloodbath, rated R, fer cristsakes!

Wed, 01/19/2011 - 17:37 | 888353 Sudden Debt
Sudden Debt's picture

so eh... how are those investment of ya working out pussy?

Wed, 01/19/2011 - 17:42 | 888362 mynhair
mynhair's picture

Got back into AVL today (5.31).  Hope I can sell it in the morning (5.50?).

Sold TBT yesterday.  Do me a flavor, and bitch slap it, so's I can get back in?

Say 37.70?

Thu, 01/20/2011 - 02:34 | 889348 Hephasteus
Hephasteus's picture

Apple. Apple will be crushed.

Wed, 01/19/2011 - 17:36 | 888345 thepigman
thepigman's picture

Shut up outed yourself

as a maroon yesterday when you claimed

Japan was in a deflationary sweet spot.

Wed, 01/19/2011 - 17:40 | 888367 Sudden Debt
Sudden Debt's picture

I just had pork chops for dinner...




I hope we can still be friends :)

Wed, 01/19/2011 - 17:59 | 888445 Dr. Porkchop
Dr. Porkchop's picture

How can you be 100% certain it was really pork?

Wed, 01/19/2011 - 18:26 | 888539 Rainman
Rainman's picture

......uh, slaughter and butcher the pig yourself ??

Wed, 01/19/2011 - 20:24 | 888830 Village Idiot
Village Idiot's picture

"If I wanted to get a good look at a pork chop I could stick my head up a pigs ass, but I'd rather take the butchers word for it."

Wed, 01/19/2011 - 17:24 | 888285 goldmiddelfinger
goldmiddelfinger's picture

All the trolls and bugs this morning were junking Tom DeMark's correction call as though they know who TD is!! Pfft.

Wed, 01/19/2011 - 17:30 | 888313 robertocarlos
robertocarlos's picture

All I know is Hu's your Daddy.

Wed, 01/19/2011 - 18:10 | 888490 Logans_Run
Logans_Run's picture

and my momma's Au Ho

Wed, 01/19/2011 - 17:33 | 888332 RobotTrader
RobotTrader's picture

FFIV blowtorched....

Unreal destruction....

Wed, 01/19/2011 - 17:35 | 888342 goldmiddelfinger
Wed, 01/19/2011 - 18:19 | 888516 El Hosel
El Hosel's picture

  "Unreal"...   everything post August 30th has been unreal, apparently FFIV is trying to be the first one back to the scene of the crime.

Wed, 01/19/2011 - 17:34 | 888335 Caviar Emptor
Caviar Emptor's picture

CSCO, INTC, MU, MSFT in after hours trading: Most active and down across the board, joining FFIV, NFLX, AMZN, EBAY. 


Amplius lava me ab iniquitate mea: et a peccato meo munda me.
Quoniam iniquitatem meam ego cognosco: et peccatum meum contra me est semper.

Wed, 01/19/2011 - 17:38 | 888346 razorthin
razorthin's picture

Actually, I think it was because king chicom came to town today, and reminded us how owned and fukked we are.  But we'll forget tomorrow in typical american fashion.

Wed, 01/19/2011 - 17:53 | 888420 Caviar Emptor
Caviar Emptor's picture

That's a yup. But remember what happens when someone yells fire in a crowded theater: the dip at the end is always fast and furious

Wed, 01/19/2011 - 17:38 | 888356 jeffca
jeffca's picture

Buy the dip

Wed, 01/19/2011 - 17:43 | 888381 mynhair
mynhair's picture

The Wanker ain't for sale.  I've tried....

Wed, 01/19/2011 - 17:39 | 888358 orangedrinkandchips
orangedrinkandchips's picture

Simply LOOK at the chart...I am not rain-man and shit but look how fucking obvious it is...when we have inflows, we peak. We have huge outflows, we bottom.

So wait(white lion style), wait...we ramp like crazy from a bottomish low of 105 in a perfect Fed-Led 45 degree angle upwards, and now. NOW the LT flows are positive.

Such reverse God forbid the crowd gets into it when we are down but they have to wait til we party 25% THEN up to the party at 2am sober! OK!

Now the crowd becomes the designated driver of stocks....

so funny and so obvious.

Wed, 01/19/2011 - 17:45 | 888396 max2205
max2205's picture

The tape felt like it was down 5% today. Lots of down 10% - 20%ers

Wed, 01/19/2011 - 17:47 | 888404 buzzsaw99
buzzsaw99's picture

Dow 36K bitchez!

Wed, 01/19/2011 - 17:48 | 888409 max2205
max2205's picture

Per Drudge , George Lukus the world will end in 2012. Sell now and spend it on silly things. Why not?

Wed, 01/19/2011 - 17:55 | 888428 goldmiddelfinger
goldmiddelfinger's picture

George Lucas' world ended in 1978

Wed, 01/19/2011 - 17:57 | 888440 Logans_Run
Logans_Run's picture

Are we sure that Sack just didn't take an indirect position in APPL just to prop the stock up?

Wed, 01/19/2011 - 18:01 | 888457 Fearless Rick
Fearless Rick's picture

eBay: Net income for the quarter was $559.2 million, or 42 cents per share, compared with $1.36 billion, or $1.02 per share, a year earlier.

They really know how to turn a company around.

Wed, 01/19/2011 - 18:36 | 888579 cramers_tears
cramers_tears's picture

Ebay blows even more lately.  -  Switched to and moved out of paypal to google checkout.  Doubt if I'll ever go back.  Fleabay just got to be too much...  But don't lose heart... their internal admasters/bullshitters are predicting a banner year.

On an aside.  I got a Fortune Magazine Subscription for Christmas'10.  I almost gave it away, before I realized I could use it for contrarian indices.  2011 is the "SUMMER OF GEORGE" - DO THE OPPOSITE of whatever the BERNANK, and the FORTUNE/Bewkes say.

Wed, 01/19/2011 - 18:02 | 888464 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

"The close was red Mr Sack,is there anything else?"

No,just phone my wife and tell her that I have to go away on business for some time........she will understand".

Wed, 01/19/2011 - 19:20 | 888716 Hubbs
Hubbs's picture

Of course the inflows have to increase if the outflows are increasing, just as you have to bail faster if the leak is getting bigger. Fed can not let the stock market, the last bastion of hope for  all mankind, go under.

Wed, 01/19/2011 - 21:58 | 889005 cclaeys
cclaeys's picture

probably the barrons roundtable article, fuckit - everyones doing it.

Wed, 01/19/2011 - 22:22 | 889074 Buck Johnson
Buck Johnson's picture

They are suckering in the retail buyers and the insiders are getting out.  One last horray for the market before it goes down.

Thu, 01/20/2011 - 11:25 | 889952 KevinH
KevinH's picture

I want to float an idea out there. We know that the hard rally since July came amidst of retails leaving the market, which leaves the question, just who is buying? If it's not retail, iit probably is institutions, PDs who got money from the Fed, major banks, large hedge funds, just buying among themselves and pushing the market up. Any buying by these guys need an exit strategy, and it's definitely not to sell back among themselves. Doing so means as a whole collective, this group gets a gain of 0. Their goal is to sell to other parties, aka, retail. When retail was leaving the market, they hold the stocks they bought and continue buying among each other to push the value of their assets higher, when retail returns, they slowly sell to retail and capture profit.

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