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Stocks Slump To Post-QEternity Lows; At Draghi Cliff's Edge

Submitted by Tyler Durden on 10/10/2012 12:52 -0400

We had the knee-jerk reaction spike. That was faded. Then we had the retest as hope remained - though it was led by the most defensive sectors as we have pointed out. That was faded. Double-top? S&P futures now sit at the top of the Draghi/ECB spike cliff...

This is the first up-trendline break (orange line) since pre-Draghi...

S&P Sectors post-QEternity

S&P Sectors post-Draghi

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Wed, 10/10/2012 - 12:53 | 2875262 fuu

Rule #2 Double Tap.

Wed, 10/10/2012 - 12:58 | 2875285 SheepDog-One

Rule #3- Dont get high on your own supply

Oh wait, thats a different movie.

Wed, 10/10/2012 - 13:01 | 2875301 malikai

..and look at what happened to him.

The unwritten rule from that movie is - get the job done.

Wed, 10/10/2012 - 14:10 | 2875582 SilverTree

Limber up fuckerz!

Wed, 10/10/2012 - 13:05 | 2875318 WhiteHose

Friggin hilarious!! lmao!

Wed, 10/10/2012 - 13:13 | 2875359 MiltonFriedmans...

Cue the Plunge Protection Team in T-1hr, 58min and counting.......

Wed, 10/10/2012 - 13:20 | 2875392 DeadFred

They'd better get on the job early today. Most of the charts I've looked at today are sitting a fraction of a percent above serious supports, the kind with a lot of air below. They set this up by manipulating the markets so much that there aren't many good stopping points. Add QEternity potentially killing the Bernanke put and we may see some serious carnage if/when those supports are broken. Ben might be soiling his panties right about now.

Wed, 10/10/2012 - 13:29 | 2875413 MiltonFriedmans...

Ben's got a really fat finger, and he knows he's out of work if Romney is elected, so.....

We'll see.

Wed, 10/10/2012 - 13:23 | 2875399 JPM Hater001

I don't know what it is about today but i get the feeling somewhere down the line today will be like 9/11 Kennedy etc. you will remember where you were. Maybe not today maybe not tomorrow but not too long.

Wed, 10/10/2012 - 13:47 | 2875495 MelvilleSaysNo

Tomorrow's date is 10/11/12.

10+11+12 = 33

My understanding is that 33 is the highest level a Freemason can attain.

Wed, 10/10/2012 - 19:32 | 2876454 SeattleBruce

Is that you Louis Farrakhan?

Wed, 10/10/2012 - 22:48 | 2876852 StychoKiller

Call him Ishmael... :>D

Wed, 10/10/2012 - 12:55 | 2875265 malikai

FTSE, DOW, S&P:

http://blog.quantsig.net/2012/10/10/indices-2/

Wed, 10/10/2012 - 12:54 | 2875266 john_connor

the FOMC spike is really the whole front run since July

Wed, 10/10/2012 - 12:58 | 2875281 buzzsaw99

Jumpin' Jack Flash Crash it's a Dragh, Dragh, Dragh

Wed, 10/10/2012 - 13:07 | 2875324 Alea Iactaest

Jumpin' Jack Crash it's a flash, flash, flash!

Wed, 10/10/2012 - 12:58 | 2875283 Dr. Engali

Damn that pesky gravity is hard to fight without a continuous fuel supply.

Wed, 10/10/2012 - 12:58 | 2875287 Confundido

I am listening to JPM's J. Dimon live and I am scared...very scared....as in get-all-the-bullion-and-guns-you-have scared....

Wed, 10/10/2012 - 13:00 | 2875291 fonzannoon

yup and start shortin thos frn"s

Wed, 10/10/2012 - 13:01 | 2875295 westboundnup

Just curious, what specfically did he say that should have us running scared?

Wed, 10/10/2012 - 13:05 | 2875317 Confundido

You know what? It is what he doesn't say that scares me!

Wed, 10/10/2012 - 13:06 | 2875321 forwardho

Confundido, any link to live Dimon, or transcipt? thanks

Wed, 10/10/2012 - 13:09 | 2875336 slaughterer

Dimon is on Bloomberg.

Wed, 10/10/2012 - 12:59 | 2875289 fonzannoon

get in ther bernak...you have come too far to fall on your face at the finish line.

Wed, 10/10/2012 - 13:03 | 2875308 Dr. Richard Head

We are fortunate enough to have video of Benanke and the equity race. Benny can be seen in the red - http://www.youtube.com/watch?v=62bWEk2PPC8

Wed, 10/10/2012 - 13:06 | 2875313 Dr. Engali

How are you feeling about the markets today Fonz? Do you think it's a dip or something more?

Wed, 10/10/2012 - 13:09 | 2875334 fonzannoon

Have not had a chance to get into it much but I would be curious to know where volume is. If it is light I think they can turn the truck around at 3pm so Bartiroma can yell at me about coming off the lows. I am also curious to see if crapple breaks towards 650 or 630.

I like that metals have held firm. I saw you guys debating whether gold drops or goes up. What if gold stays put while equities drop? That would interest me. Honestly though I think we are in this rangebound mess until the day equities sell off and yields rise. Then I will be completely glued to my screens.

How about you?

Wed, 10/10/2012 - 13:11 | 2875347 slaughterer

Fisher speaks at 3:45pm.

Wed, 10/10/2012 - 13:14 | 2875361 fonzannoon

Fisher has to be happy. His massive position in GLD is doing well....

Wed, 10/10/2012 - 13:27 | 2875408 Dr. Engali

Well you know my thoughts are that without more stimulus than we are currently getting from the Fed this market isn't going any higher. At best I believe it will be range bound and finally had south as selling overwhelms the Fed stimulus. This could be the start of a downward move if the shorts don't jump on this down tick to quickly. If they do they will get squeeze for sure. Hopefully they are smart and wait for some momentum.

Wed, 10/10/2012 - 13:30 | 2875416 fonzannoon

Here is a quick OT story to pass the time...

I started working at a local bank in 1999 in the investment dept selling shitbag fixed annuities and awful mutual funds. The bank was publicly traded and got bought in 2005 by a bigger bank. The bank employees all had massive amounts of stock options. The average teller came into between 50k and 100k and the avg bank manager came into about 1.5 mil. This happened overnight. They turned on their screens that morning and overnight it was like the bernakfairy had been there. I went independant and many of those employees helped me make my start and prob got me to sustain in this business. Well 7 years and countless Escelades, BMW's and divorces later I have one client left from many. The rest blew their retirement in 7 years of less. It just fascinates me.

Wed, 10/10/2012 - 13:55 | 2875526 Dr. Engali

That story doesn't shock me. We were just talking about similar stories in the office here. Most of them involve beneficiaries of cliants that hev passed on. Most of them scrimped and saved all their life then their heirs get it and burn through it like nothing. They get a chunk of money and they think they're rich, then they wonder what happed when it's all gone.

Wed, 10/10/2012 - 13:01 | 2875297 Jim in MN

1. Never give anything away for nothing.

2. Never give more than you have to (always catch the buyer hungry and always make him wait).

3. Always take back everything if you possibly can.

--William S. Burroughs on drug dealing, quoted in The Daily Telegraph (1964)

Wed, 10/10/2012 - 13:01 | 2875299 lolmao500

Time for QE Eternity^2

Wed, 10/10/2012 - 13:22 | 2875397 NotApplicable

That's the cool thing about infinity. Plenty of room for exponential functions, so... they're covered!

Wed, 10/10/2012 - 13:01 | 2875302 Hedgetard55

We need QE4, stat!

Wed, 10/10/2012 - 13:03 | 2875309 Karl von Bahnhof

That was done last week...

Wed, 10/10/2012 - 13:08 | 2875330 Yen Cross

Why is the fucking 10year up 3 basis points on a solid down market day? Nasdapple is off .50% yet aapl is up.50%? These markets are beyond retarded!

Wed, 10/10/2012 - 13:10 | 2875345 fonzannoon

Because Jamie Dimon was all over the TV just now saying it was "assured" that the bond markets will turn against the US one day. That's my guess.

There is a war going on now with apple.

Wed, 10/10/2012 - 13:08 | 2875331 Inthemix96

Draghi, another scranwy no-neck shithawk who wouldnt know the value of a lemon if you fucking rammed it down his fucking throat.

The sooner humanity is through with scum like this the better the human condition will be.

Who wants to have a "leader" anyway? Can you not live a life without a "leader", coming in and either spoiling what you do for a living, or try and take a cut for himself? Fuck the likes of this non-enitity. Fuck off draghi, go and make a real fucking living, instead of taking the labour of others you fucking shithawk.

Wed, 10/10/2012 - 13:36 | 2875440 Pareto