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

Tyler Durden's picture

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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fuu's picture

Rule #2 Double Tap.

SheepDog-One's picture

Rule #3- Dont get high on your own supply

Oh wait, thats a different movie.

malikai's picture

..and look at what happened to him.

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

MiltonFriedmansNightmare's picture

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

DeadFred's picture

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.

MiltonFriedmansNightmare's picture

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

We'll see.

JPM Hater001's picture

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.

MelvilleSaysNo's picture

Tomorrow's date is 10/11/12.

10+11+12 = 33

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

john_connor's picture

the FOMC spike is really the whole front run since July

buzzsaw99's picture

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

Alea Iactaest's picture

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

Dr. Engali's picture

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

Confundido's picture

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

fonzannoon's picture

yup and start shortin thos frn"s

westboundnup's picture

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

Confundido's picture

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

forwardho's picture

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

fonzannoon's picture

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

Dr. Richard Head's picture

We are fortunate enough to have video of Benanke and the equity race.  Benny can be seen in the red -

Dr. Engali's picture

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

fonzannoon's picture

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?

fonzannoon's picture

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


Dr. Engali's picture

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.

fonzannoon's picture

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.

Dr. Engali's picture

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.

Jim in MN's picture


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)

lolmao500's picture

Time for QE Eternity^2

NotApplicable's picture

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

Hedgetard55's picture

We need QE4, stat!

Yen Cross's picture

 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!

fonzannoon's picture

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.

Inthemix96's picture

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.

Pareto's picture

+5 for "scrawny no-neck shithawk"

q99x2's picture

Seems perfectly reasonable.

slaughterer's picture

Lots of flash crashes happening at 1:20pm.  

NaiLib's picture

More CB cash into futures tomorrow then..

slaughterer's picture

Need roomer before EOD, will get roomer before EOD.  

firstdivision's picture

Que the FT and their sources in 3....2.....

Tum's picture

"My milkshake brings all the banks to the yard, and they're like, ZIRP ZIRP ZIRP ZIRP..." - Ben Bernanke.

sosoome's picture

Oh dear...I think it's time for QEternity2