Dow Closes Under 10,000 For First Time Since February 7

Tyler Durden's picture

On a day like today, when the entire CNBC fast momo brigade said it was buying into the close (we would show you the clip of just how worthless intraday trading advice on CNBC is, if only the propaganda station had not pulled the episode), there was just one way for the marker to close: below 10,000. The fight over the 10k barrier, which the traders over at Liberty 33 find important for some reason, was fast and furious, but in the end, reinforced by a deteriorating euro, the bears won, closing at 9974.4, further plunging after hours. The Dow is now at the lowest close of the year, with the only times the Dow has closed under 10k being in a three day brief period between February 5 and 7th. Also, looking at the EUR panel, things are going from bad to worse. Absent China lifting every other offer, which would be confusing in light of SAFE's earlier negative announcement on European bond holdings, we could easily see a 1.20 handle by tomorrow morning, which would solidly push the S&P on its way well into triple digit territory.

The drop from the Dow highs one short month ago is now over 11%.

And this is how the bloodbath after hours is looking like right now:


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Mr Lennon Hendrix's picture

And the Euro is getting its ass handed to it again!

carbonmutant's picture

The night is young. Wait till Asia opens...

Mr Lennon Hendrix's picture

Whatcha thinking?  Gold/dollar/euro/equities.............

carbonmutant's picture

We'll after China's annoucement if I were holding Euros in Asia I would want to reduce my risk.

Mr Lennon Hendrix's picture

Ok, personally I would sell $ for gold, but Euros for gold sounds good enough ;)

fuggetaboutit's picture

bear in mind, bullish VIX cross 50 day through 200 day tomorrow. coupled with a pretty nice looking bullish hammer on the vix daily

and assuming numbers 1 and 2, next week potential for bullish vix cross weekly, with the 50 week crossing the 200 week. last time that happened? Late september 2007.



Implicit simplicit's picture

There will be no coming back when the weekly cross happens. Frankly, its starting to look like a done deal now.

fuggetaboutit's picture

well at least leading economic indicators have rolled over and that is before the huge payback coming from housing policy and forced inventory build due to stimuli

that should soften any blows from the dual daily and weekly vix crosses

Sucks_to_be_Smart's picture

What is the rationale for analyzing vix charts using technical analysis?  What is vix? its an index designed in Chicago to track weighted implied vols on ATM options on the S&P 500 index.  So you are using technical analysis to analyze the "bullishness" of implied volatility...  You're essentially saying... well i predict tomorrow people will ask for marginally more premium for options because they will be marginally more afraid for the super short term ATM exposure.  I think using technical analysis for stocks yields little consequence.  If you can make money on TA good for you.  But using it on derivatives and characteristics of derivatives on stocks?  come on....

fuggetaboutit's picture

good point, i'd urge you to ignore it

FischerBlack's picture

If TA works at all, it has to work everywhere. So long as the price series changes according to the buy-sell decisions of freely-transacting market participants, it can be analyzed with TA.

Personally, I think TA is voodoo. But like any religion, voodoo has its uses.

Julien's picture

I would not see it like "predict tomorow" but rather as a warning. At least, don't go long at that moment let's say...

knukles's picture

So, the PPT's short silver, gold and long SPY, huh?

StychoKiller's picture

All right, fall d@mn it!  I wanna see flames from the atmospheric friction!

ALPO's picture

Beautiful, just beautiful.


etrader's picture

The only thing they were buying was Ms Regan's outfit......

Poor Simon having to cheerlead US style, I bet he misses the more balanced Euroland CNBC output.

Here's the Fast Momo Clip, 10mins in their all buying the close,


Mitchman's picture

Hmmmm.... They pulled that video too.

etrader's picture

Its there, if it's busy it will redirect...

Even Jimbo didn't want anything to do with the market going into the close.

Note the soft left Ms Drury pan's normally reserved for MCC(s)

Carl Spackler's picture

Crazy is the ship of fools

reading's picture

here it is in writing...


Jon Najarian I’m a buyer.

Anthony Scaramucci: I’m a buyer

Joe Terranova I think the market heads higher

Brian Kelly: I’m a buyer

heyligen's picture

Up, up, that's what we want, that's what Fed will provide. Simple, isn't it?

qualia's picture

'I'm also a buyer'



Astute Investor's picture

Ben Bernanke:  I am definitely a buyer, but maybe after hours.

Julien's picture

Come on, I just peeped the index 5 seconds around noon at work and it seemed very clear there was not enough substained momentum to buy this 'rally'

SDRII's picture

laugh of day: FASB to vote on rule to force banks to M2M the loan portfolio -- something tells me the NYFRB is burning up the wire

Cursive's picture

If FASB votes to require M2M, FAZ will be in the mid-20's tomorrow.  SPX will have a 9 handle.

Mitchman's picture

SPX will have a 6 handle.

VK's picture

Make that an insta 2 handle! 

homersimpson's picture

Even though M2M should be implemented - let's be realistic. That's like expecting Megan Fox to show up on your doorstep tonight.. in Compton, CA. Yea - that home where the crack dealers and Crips are hanging out in your yard.

knukles's picture

Crack?  Meg Fox?  Nah...
But Lindsay Lohan might make it if ya' throw in some Smirnoff.

Cognitive Dissonance's picture

That's odd. Megan just told me that's where she was headed next as she zipped herself up and put on her shoes.

Panafrican Funktron Robot's picture

Interesting, looks like their target for implementation would be right around November.  What an amazing and completely unexpected coincidence. 

Conrad Murray's picture

It's good to know the crisis will not be wasted.

SDRII's picture

BOJ to the rescue....strike that return of the Kamakazie

living on the edge's picture

The US Treasury wants a strong dollar policy and it seems their wish is coming true.

LoneStarHog's picture

To quote Douchinger, "Uh Huh"...And where is the DOW when priced in gold?

Rusty_Shackleford's picture

It amazes me how someone can be otherwise reasonable, logical, and well versed in economics and say something like this line from his blog today:


"The last time I checked they didn't take 100oz bars at WalMart, but they sure do take $100 bills."


Carl, what do you do when that $100 bill only buys you a gumball?


It's like he's Rainman or something.

Mr Lennon Hendrix's picture

In my opinion, one can be an astute investor/forecaster (whatever), but if lost on gold, all is lost.

Juan Venti's picture

Rainman had vision. He does not.

Moneygrove's picture

the new $100 bill will be out feb 21 , 2011. photos of it in this months coin world.

bingaling's picture

or to quote a madman from Texas where is the Dow if you price in inflation?Mr Ure is correct that the high for the Dow was 1987 (or was it 2000?)f you price in inflation . The only way from here is down being we have never actually reached any new highs .

Cognitive Dissonance's picture

And that's assuming you plug in the "official" inflation nubers. Try for some better numbers and the entire shooting match ain't looking very good.

Turd Ferguson's picture

Now we know why B'rock O'Bottom suddenly ordered some troops to the border.

Mr Lennon Hendrix's picture

Like Miles and I were saying the other night, ominous.

Turd Ferguson's picture

Yes, such a dramatic change of position. Very ominous, indeed.

I'll give you another...A couple of days after the "interrogation" of the NYC car bomb suspect, Democrats (the supposed defenders of civil liberties) propose suspending of Miranda rights for US citizens accused of assisting terrorists. What the fuck did they learn from that asshole that they were suddenly so compelled to make that suggestion? 

Mr Lennon Hendrix's picture


That sounded like a rhetorical questing but I like saying it.....

They learned nothing.