Stop Hunt Retraces Post-Election Market Losses

Tyler Durden's picture

Equity markets have pulled away from the rest of risk in a wonderfully dramatic manner this morning as they set their sights on the pre-election highs and the running of the stops. We are now back at Bernanke QE3 spike levels - which we are sure makes perfect sense to someone - anyone, Bueller? For now, it seems like we auctioned up to clear out any last remaining weak hand shorts given the lack of support for this from any other market.


Stocks on their own relative to risk...


Back to Election levels and pre-Bernanke spike levels...


and a close up on the algo ramp-a-palooza stop run...

There is also speculation a customer may have put on a call spread with a $1.5 billion total delta position, although the straight line ramp in ES over a span of minutes which should have been done in a dark pool to avoid slippage, instead of VWAP, confirms there was a much more "demonstrative" component to this latest stop hunt.

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SheepDog-One's picture

Oh of course, 'all is WELL', nevermind the collapsed real economy...Must. Retrace. All. Losses.


Fredo Corleone's picture

A "customer" in an algorithmic enviornment ? Certainly not an organic customer -- perhaps some"one" like Ash, from "Alien."

Short the S&P ? "I won't lie to you about your chances, but you have my sympathies."

Mr Lennon Hendrix's picture

Bond rates rose today, which means bond prices dropped today.  Since you have always been a deflationista please take note that you got some deflation today and in the world's second largest market.  The bond market by the way is 10 times the size of the equity market, so this was no small move.

Instead of focusing your furry at stocks why don't you make an effort to look past the shiny green light.

Don't think that you are dutiful just because you talk shit about stocks.  Instead be diligent and focus your hate at the ponzi.  Top to bottom the problem is not stocks, it is the fiat currency that the stocks and bonds are denominated in.  Focus on that and then we can make progress.

Godisanhftbot's picture


mrktwtch2's picture

and why is this surprising..if you bought 5 sps at the start of the day and sold them at the close for the last 4yrs you would be up about 2 million with those few 18% pullbacks in there..

SheepDog-One's picture

Yep rearview mirror trading WOULD be a wonderful method, problem is it only works if youre a Deity or a central bankster. Anyone using any common sense and logic on those days only gets chumped.

Mr Lennon Hendrix's picture

You stock bears are just as bad as the bulls.

A Man without Qualities's picture

Check out HPQ for complete idiocy...

Undecided's picture

oops just shorted, can i get a Dec. 21st hell yeh!

Squid Vicious's picture

you mean sharted? that's what usually happens right after you short this mkt.

Shizzmoney's picture

It's pretty easy to rig a market when hedge funds and banks are just trading back and forth with each other.

There's a term for this called, "Circle Jerk".

scatterbrains's picture

So is this move legit ?   Gold's calling bullshit again... so far

edifice's picture

And gold is down, again. Only in Bizarro World...

Triple A's picture

you can't make this shit up

fonzannoon's picture

Just about once a week that bring that Pento guy out on TV. He announces he has a massive cash position and proceeds to beat up on the other guest who is the typical permabull. Almost everything Pento says sounds logical, and I am just using him as an example. There are plenty more like him. When he is done slapping the other guests around Maria B or whomever asks him "are your clients concerned they are not participating in this market?".

The point is they are going to try and twist his balls with this market until every one of these guys clients is demanding to own something. There are plenty of these guys out there who may be forced to cry Uncle and jump in and keep feeding the beast.

SmoothCoolSmoke's picture

THere are plenty of those guys here on ZH.

Dr. Engali's picture

The empire is resilient that's for sure.

fonzannoon's picture

2008 caught em off guard. they are ready this time. it's gonna be a battle.

Tsar Pointless's picture

Santa Claus is coming to town, dontchaknow?

And, this year, in lieu of bringing presents, he's going to load all of us Amerikkkans onto his sleigh and rescue us from the evil villain known as "Fiscal Cliff".

So, Rudolph, onward to S&P 500 to 1500 and beyond!

Dr. Engali's picture

It always pays to go long before the fed meets.

Spastica Rex's picture

Buy low, sell high.

Or so I'm told.

I bought a lottery ticket this last weekend.

Dr. Engali's picture

I bought a nice shiny gold eagle....lost the damn thing on the car ride home.

Everybodys All American's picture

What I have found bizarre of late is the small cap stocks that are just getting price and volume ramped for no reason at all. Just a pure chase the stock higher. Very suspicious ... I think it probably amounts to the most heavily shorted stocks are getting played.

Not a fan of Ritholz but this conveys my suspicions. 

Squid Vicious's picture

12 minutes til Wapner.. i mean Boner

nobusiness's picture

even if Bonner has something intelligent to say, he will sound like an ass.  A man with no principals has a hard time defending his positions.

GernB's picture

I can't recall the last time I saw a politician in Washinton with principals, and they all defend their position regardless of whether it makes sense or not.

bullmkt's picture

theare are far  more"weak' shorts above.soon to be taken out,too

I womder will there be "sheer idiocy/lunacy in the market " or "algotron" to blame.meanwhile the trend is up for the last 4 weeks,what Durden fails to notice

nobusiness's picture

will there ever be strong shorts???

Everybodys All American's picture

There just aren't that many shorts in the market. Period. Most people are simply selling to get out and move to the sideline.

These are very low volume days which tells me there isn't any short covering of any great degree going on in the market.

q99x2's picture

Everyone is now convinced by Krugman and Keene that the Benanke bucks must keep flowing. And that there will be green shoots in the spring. Then will come soummer and Fall. Then Winter and more Bernanke bucks then Green shoots in the Spring. Then Krugman and Keene then Bernanke bucks then Summer and Fall.

Quinvarius's picture

Kaminskied!  My thesis is bullish.

SmoothCoolSmoke's picture

ZH was logically and rightly skeptical......and the dip buyers laughed all the way to the bank.

GernB's picture

So what you're saying is markets are not logical. Hmm, interesting thesis.

disabledvet's picture

"the last refuge of a complete and total idiot is arrogance." go ahead Tylers Durden..."tell the world how it really is."

Mr Lennon Hendrix's picture

Prices will continue to rise across the board until the Central Banks take their finger off of the CTRL+P key.

GernB's picture

Prices will continue to rise accross the board until deflationary pressure overwhelms the abiliyt of central banks to print. Central banks can only buy debt to the extent that debtors are available to sell debt. Logically, debt cannot grow forever. There must come a point where existing debt will be retiring faster than central banks can find new debt to replace it. At that point deflationary pressures will overwhelm central banks and they will be unable to stop the downward spiral.

dvsteenk's picture

so the fat finger trade of 11,000 ES about one week ago was a planned move? Who's giving the ROI of this trade "a helping hand"?

orangegeek's picture

SP500 hourly showed another push up and we got it.


And the planet Farce lives another day.