Third Consecutive Late Selloff Has Momos On Edge, As JOE Shorts Pummeled

Tyler Durden's picture

After two consecutive days of late day sell offs, today may have been the day that sealed it. After the market opened with its traditional low-volume melt up appeal, once again suckering in the straggler asset managers, it was followed by an increasingly more resonant tiptoeing toward the exists, as ever larger ES blocks were dumped, confirming that the larger institutions are increasingly taking profits during what used to be the domain of the 3:30 pm melt up. As we speculated yesterday, we have reason to believe that the ETF gamma trade has flipped (courtsy of massive amounts of SPY shorts outstanding) and at this point the HFT crew, with its perpetual bid side bias, is starting to lose out big to the nearly $2 trillion ETF market. Should this accelerate not even GETCO's DMM silent but deadly no volume levitation will do much. And unlike yesterday, today's sell off occured on a POMO day...

And incidentally, all those who followed David Einhorn into the second time is the charm short in St. Joe's, are likely not too happy after 1.6 million shares traded on what appears to be an attempt to force squeeze all the shorts out of the name.

And contrary to media attempts to explain the pop, the rumor that JOE was an aquisition target appeared over 6 hours ago as confirmed by our own tweet from around 10am. The jump did not occur until well later.

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SheepDog-One's picture

Tiptoeing towards the brings to mind old Tom n Jerry cartoons.

mynhair's picture

Harkin back to Tiny Tim, if you will.....

Tom Harkin and his tulip gang.

Sancho Ponzi's picture

Denninger just posted a thread 'FBI Outed Breaking Into The US Internet', and now his site is down


AR15AU's picture

WOW...  Thanks for the heads up on that...

Sancho Ponzi's picture

The FBI allegedly paid some developers to design some backdoor vulnerabilities into a widely used platform. Man, the site is still down! Karl may be moving to Iceland sooner than he thought!

Xibalba's picture

You're witnessing the end of an Empire.  Eat your heart out.

inkt2002's picture

Does he have a twitter account?  Any updates?

inkt2002's picture

Maybe it is not the FBI.  He probably cant afford a server after all his market calls.

MountainHawk's picture

That bastard is single handidly responsible for me missing out on the greatest rally of my lifetime. I cashed out my 401k from an old job and turned it into an IRA thinking the world was going to end mid way through last year. In the end, I was the greater fool.

tmosley's picture

Having a low opinion of Karl, I never paid much attention to his calls.  If you cashed out your 401K, what did you buy for your IRA?  You wouldn't be sad if you had bought gold or silver.  I'm wondering what else there could really be.

Sancho Ponzi's picture

Per Facebook, there's been a major service provider/telco outage in his area. He should be back up soon. 


Correction: The problem is with the hosting company


Mr Lennon Hendrix's picture

I think platinum had a good day, so anyone want to hate on that?

Mr Lennon Hendrix's picture

Something sure is setting up.  Right in the face of my calls.  I am sticking with them though.

Silver, snitches!

Boilermaker's picture

I think I'm the only one playing the REITs but, Jesus Christ, has that been out of control during the trading sessions.  Same routing, plunge, immediately jacked back up, plunge, jack up, plunge, jack up....sell off.

Ragnarok's picture

OT: BAC to settle with mortgage investors





Cdad's picture


I think Tyler meant "slipping out the back door of the Roach Motel," which is how I refer to trading action on SPY, after first determining that both the SPY and the VXX creation units machines are on the fritz and both issues are now responding to free market forces...which is something that neither fund is used to after months of shares constantly available at any price and at any shocking ways.

Language differences aside, I think Tyler has it right...and as those guys sick out all those Euro dollars they been chucking back...well, I don't see how the dollar does not rally, knocking down all the sand castles on which the rally in the Roach Motel has been built.

But I'm a simple guy, you know, and maybe I don't get anything that is going on around me?  Maybe.

SheepDog-One's picture

I think its right. All these clowns knew they could buy about 2 years with outright BS. its about over right now and all the bubbles are about to get monkeyhammered by a dollar rising. Bonds are toxic, stocks are a joke. Heres what image comes to mind when I think about the stock markets today-

Ferg .'s picture

Interesting to see the selling pressure mount towards the close . Not that someone ( or rather something ) didn't attempt to ramp prices higher in the final hour . Tomorrow should be very interesting . If this is indeed a top then we should see some fairly sharp accelerations to the downside .

mynhair's picture

Go to cash now to front run the drop for EOY settlement.

Rogerwilco's picture

But Harry and Robo said Santa was coming!

Spitzer's picture

Robo and Harry are two very sick people, I would add Spalding also.

mynhair's picture

Where have they been wrong?

Disgusting, yes, but wrong?

Spitzer's picture

They have been dead wrong about their reasoning for everything. US equities have lost out compared to foreign equities and gold has kicked US equities ass. Have you seen the Thai SET lately ? What about the Singapore dollar ?

I don't think people like you even realize that most inflationists (including the biggest one of all, Peter Schiff) ARE NOT BEARISH ON STOCKS.

Robo and Harry are in stocks for the wrong reasons. Their reasoning is dead wrong. A shitty US economy is not good for bonds. Why didn't Spains bonds rally as the unemployment rate went up ?

SheepDog-One's picture

And even the best stock chasers today will be incredibly lucky just to break even with purchasing power. Its all just an illusion in the stock markets, and I doubt Harry or any of the rest even own any stocks.

StychoKiller's picture

Shh!  Harry is really an A.I. program (wikipedia: Eliza), but don't tell anyone, especially Harry! :>D

Cdad's picture



I would add a comment about Spalding but will digress...for two reasons:

1.  Spalding is very excitable.

2.  Spalding said he would sell his shares in mining stocks to me.

As for Robo, I don't think he is sick, at all.  I just think he keeps confusing the past with the future.

And Harry...well, I think he may be suffering from zombification as a result of his dedication to the company called Apple.  It has happened to millions of tell the truth.  I don't know anything about it, though, because I don't have an Apple anything.

mynhair's picture

He claimed (on MW) to be buying AAPL between 245 and 260, where is it now?  When he sells is the key.

Spitzer's picture

I shut Spalding up rather quickly a few days ago when he was on a perma-TBTF-dollar-bull rant. Sometimes I don't have the time to put him in his place or at least make him think

Spalding_Smailes's picture

You what ?


We can have it out now but after this will you stop with your EURO love and all this crap about 3rd world reserve currency what iffff's..... Singapore, Vietnam ...??? The hot money pour out of asia the first sign of trouble. What are you smoking ? How will the world unwind 1 quadrillion in dollar denominated debt. What balance sheetcan support this & WHEN ?


Read up on the inflation pouring into Europe, Tyler will post about this topic soon, read up on China and inflation.

Uncle Ben = Pimp.

Cdad's picture


In through the nose...

Out through the mouth...

Easy now.  Remain calm.


Spalding_Smailes's picture

I cant do it any longer, god bless america, ben, everyone.

Spitzer is right run out and buy euros ....Like Jay Z'

Psss. pppppss boom' boom 'push your money over sea's Lol'.  I be tell'n you toss out doz dollars buyz euro's dooog. That moron lost his ass ....Hows that euro outlook Jay-Z ? One rate, for all. His pro- euro rap song~


tmosley's picture

If you think Singapore is third world, then you are dumber than you act.

Spalding_Smailes's picture

I had to sell VGGCF at 93 cents on tues. they merged with another firm and only trade in Canada ( Im on tdameritrade ...)... Bought at 63 cents.

You can look they send me a notice on monday.

The only stocks I have X,ZEUS,MT,JPM,DB,HOLI,JOBS,DRYS,AMCN & AIG at the end of yesterday after 4 days of big volume.

A few from China banks,industrials.

Cdad's picture


As your ZH brother, I really have to mention that owning X is probably a really bad idea.  US steel is a company that is totally weighed down by long standing legacy costs.  They might be competitive on the world wide maybe 20 years...after those old farts have rolled over, if you know what I mean.

As well, are you now saying you sold your gold miners?


Spalding_Smailes's picture

Thanks. I only had 1 miner , yes it delisted.

US Steel has not even started rolling yet wait till Q2 next year.

Cat has never been this busy everyone planning for jim rogers 20 year commodity run ag & mining. All the auto builders must build new models ford,gm,toy,hon, all here. A friend of mine owns a metals cnc shop 140 guys. All the suppliers (ryerson,castle,ect.) have nothing on the shelf. When ryerson orders metal from us steel it not a small order we are talking 6 month out. The dollar has been dropping and as things pickup around the globe more work is coming back to USA shops. Many world class manufactures in USA still, and the USA running at 50-60% is still a big economy compared to rest of the world. Cat just bought bucyrus also -Welcome to Bucyrus | Bucyrus International


  • Joy Global a USA firm Qreport---------------------Joy Global said fourth-quarter bookings rose by 48 percent, which indicates mining customers would continue to raise capital expenditure to address a strong demand for commodities such as copper and coal.  "Mining companies have announced capital expenditures that are up 30 to 35 percent this year ... announced capital expenditures for 2011 are expected to rise another 15 to 20 percent."
  • Joy Global, known for its giant shovels and draglines, forecast fiscal 2011 earnings of $5.00-$5.30 a share, on revenue of $3.9-$4.1 billion.  Analysts on average were expecting earnings of $4.79 a share, on revenue of $3.86 billion, according to Thomson Reuters I/B/E/S.
  • For the fourth quarter, the company reported earnings of $1.39 a share, on revenue of $1.05 billion.




I Am The Unknown Comic's picture

Spalding did you unload your VXZ today?  I'm not ready to let mine go yet.  I'm waiting for the "VXX units creation machine" (that Cdad mentions) to be turned back on.  I'm thinking maybe options expiration?

Cdad's picture


Santa is coming.  However, it is not clear that he will be bringing toys for everyone. 

If the criminal syndicate known as Wall Street continues to have its way with the American economic system, after Santa has come and gone, the only thing that might be left in the stocking is $3+ per gallon gasoline.

It is a crappy thing for Wall Street to put in average Joe's stocking...but it seems like said criminal syndicate does not care...which strikes me as odd, to tell the truth.

Robslob's picture

Santa is coming...with a vengeance! HoHoHo...crash

StychoKiller's picture

From Futurama (Santa):  "Your mistletoe is no match for my TOW Missile!"

papaswamp's picture

So tomorrow even more of a sell off and Friday a bloodbath? I only pick Friday since most schools let out for the holidays and the algos will get shut down for the vacation period....or not.

mynhair's picture

bloodbath = 12/27, then miracle recovery 12/28.

Though I have a bad tendency to be a day off.

doomandbloom's picture

i am having a treja-vu

inkt2002's picture

Does anyone have a database showing all daily returns on POMO days (and an hour by hour returns)???

johnnymustardseed's picture

Silver doing its JPM thing again, up two days, down two days. Wow they never give up!

HarnyWanger's picture

Why even bother looking at graphs? Even if I had, I would believe my own eyes before some doomer's chart. What my eyes are telling me is that my products are selling better than they ever have! This means that: unemployment has fallen, incomes have risen, and the recession has been over for months -- just like the people who really know have been saying all along! All in all, just another greenlight.

Spalding_Smailes's picture

Did things slow down yet by you Harry ? Whats the mall like did you go shopping yet ?

SRV - ES339's picture

Lots of traffic in the malls... they're all checking out the 40, 50, 60% off signs getting bigger every day... Harry must be in food stamps... I hear the market in them is booming!

New_Meat's picture

Dude, there ain't no more "food stamps".  They are "Auntie Zeitunie Cards" now, because, after all, if you are on "relief" (another FDR era term that is being expunged) then, well, your self-esteem might be challenged.  Can't have that.