Tyler Durden's picture

Finally, the market realizes that it was the patsy all along. This is what a real cliff looks like:

Of course, none of this news to any of our readers. From November 13:

Once again, it will be up to the market, just like last August, just like October of 2008, to implode and to shock Congress into awakening and coming up with a compromise of sorts.

But please listen to all those "expert" political journalists, reporters and pundits, who said all is well and not to worry about anything. After all they had pretty slideshows and lots of clickbait to make you believe they know stuff

The good news: ES can only drop 5%, or limit down, on Sunday night when the market gets more of the same.

The better news: SPY is open late tonight, long after ES closes.


And it is different this time (from the debt ceiling debate of last year) as investorsd have been herded into risk assets en masse by an over-zealous Fed head...


Where it likely is not at all be different, is how much further the market will have to plunge to "extract" a deal from Congress... roughly another 15-20% lower. Which with a near record margin debt on the NYSE will become quite a sight to see.

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CClarity's picture

Post market close futures puke as Congressional leaders leave without statements. Batten down the hatches for a weekend of blather.

Santa has already come and gone.  No more "Believe" into New Year.

falak pema's picture

not a drop fell on the S&P !

Bad aim !

11b40's picture

pulled out of the S&P at the last second.  wasn't wearing protection.

icanhasbailout's picture

Feel free to join me on Twitter hashtag #HFTpickuplines

derek_vineyard's picture

not to be a dick....but isn't a bloodbath -10,20,30 or 50+%  ???


pashley1411's picture

patience, grasshopper.  its coming, its coming

tom a taxpayer's picture

that's what she keeps saying..patience, grasshopper...its coming, its coming

Spirit Of Truth's picture

DJIA closed decisively below the psychologically important 13000 mark today and we are in a Puetz eclipse crash window around the full moon.  Israel, Syria, Iran and a Mideast war might prove more relevant here than the "Fiscal Cliff":

TwoShortPlanks's picture

It's like WWI where no attack should be attempted between 12 noon and 1pm, instead, some lunch and a spot of Cricket should be enjoied by both sides of the battlefield....likewise, the Christmas period should be calm, but let the blood run free from here-on-in.

Get some cash ready to BTFD on the Gold sell-off to cover losses.

AllWorkedUp's picture

 I'm not so sure we're going to get a big selloff in gold if the market tanks, Gold may not rally, but it may not selloff all that much either.

 Commercials have been covering shorts on this latest dip and adding longs. We'll see.

old naughty's picture

sounds like a mental masturbation.

Ookspay's picture

It's here... Something in my gut tells me this is the beginning of the fall. The moment some have wished for, many have feared but all knew would come. I think the it-shay is about to hit the an-fay...

Got Gold?  Got Sig? Let's ROLL!

GetZeeGold's picture



Thank goodness Mitt didn't get elected.....what is about to happen next would have set the Mormons back to the stone age.


Not sure what it means for black people....but in their defense I know a lot of black people that aren't stoners.

Hulk's picture

I'll short the market and put a most definite end to this bloodbath...

Bangin7GramRocks's picture

Word! 1.21% is really stretching the term "bloodbath". Wow, look at her! She lost 1.5 pounds and is now really hot!

urwright's picture

Would you have read it if it did not say bloodbath?

HardAssets's picture

Screaming headlines saying

 "MARKET DOWN  - 1.21 %"

just doesnt have the same eye appeal.

From their headline you woulda thought it was 1929 again.

Michaelwiseguy's picture

Yeah but Congress will be yapping and flapping their gums hard till Sunday to work out a deal. Hopey changy is alive and well.

barkingbill's picture

the market can't really go down right? i mean didn't they fix that? with globalization and PR, propaganda, global finance, and the corporate world dictatorship, there is no need for "down" anymore....right? the technocrats have a perfect world for us....just a r o u n d the corner. god i love this generation. they are so....humble...

toady's picture

You missed the main reason the market doesn't go down.

They will stop trading if there is ever a major move downward.

That's the main reason its been going up for the last 5 years. It's the only direction that's allowed.

Supernova Born's picture

Bernank's paper mache bubble bath.

Better climb out of the tub before it dries.

saturn's picture

I read it because of the picture.

RockyRacoon's picture

Kinda like when gold "tanks" by losing $10.   Yeah, big swing there.

Michaelwiseguy's picture

I pay about $10 in tax per tankful of gas every time I fill up. Even though I've gone John Galt and am unemployed. Don't feel sorry for me, my home is paid off.

freedogger's picture

Re: bloodbath - relax folks, they didn't bring the deer out.

Jack Napier's picture

True that. This is more like a finger prick... but everybody loves a sensational headline.

Element's picture

I think you meant paper-cut. ;)

Lord Koos's picture

Yeah. not like ZH ever indulges in hyperbole or sensationalism.

mkkby's picture

ZH says another 20% down coming.  I hope that happens just so I can buy more gold cheaper.  I still wouldn't buy stocks unless ES went down to 600.

pavman's picture

There's always Monday.  Thinking I might short to make some EOY, pre-tax green.  Then again, I might just sleep in and not care.  Just as long as I can buy my equities back cheaper later, I'm all good.  Albeit, the whole tax increase thing is really annoying.  Jokes on us, but then what recourse do we have with such a low ratio of representation in the limp dick err lame duck congress?

Chupacabra-322's picture

@ 11b40,

the rythm method isn't going to save you for the shit storm we're in. 

TruthInSunshine's picture

At around 9:30 p.m. EST on Sunday, December 30th, there will be a rumor intentionally leaked to the Lame Stream Press that Obamney & Boehner met over tea and crumpets and are "close to a deal."

fonzannoon's picture

Bingo TIS. This post close drop will be retraced like it never happened.

MsCreant's picture

It was my first thought reading this. They will BTFD. I wish I was not this jaded but I have seen this episode too many times. 

Debt-Is-Not-Money's picture

"...I have seen this episode too many times. "

Lucy, Charlie Brown, and the Football are still with us!

Shell Game's picture



I'll never get tired of that..

Threethreethree's picture

We have become as Pavlov's dogs. Each time the market goes down, we get a little news, and it goes back up. Simple operant conditioning.
We have become like dogs, salivating at the ringing of the dinner bell.
We are conditioned to buy the dips.

This time it is different. The game has changed. There will be no bell, and there certainly will be no dinner. We will wait as we salivate, only to watch as the dinner never comes.

Why might it be different this time? Because you must now learn who the master is. The master seeks to conglomerate his power, and he will do just that. It is not about the market, it is about power. It is about faith. It is about stirring up all of the dogs so that they turn on themselves to feed.

Order will give way chaos.

There is simply no other path.


WmMcK's picture

More like Pavlov's cow (with the bell around it's own neck).

Biggvs's picture

Monday is December 31st, a day which might as well be known as National Paint The Tape Day.

HardAssets's picture

Like playing craps in a casino . . . 'hmmmm, lets see - market up or market down Monday ?"

As for analysis - - - that went out the window a long time ago.

Except now I find myself thinking - -" How can the criminals screw over as many people as possible ?" and then I bet that way. Maybe you should study criminology rather than finance.

pavman's picture

The easiest way is to just take the money and say sorry, the CEO didn't know and the money's gone.  Oh wait, they've already done that and gotten away with it... let's see if they now do it en mass in 2013.  Time to buy physical... and/or take your cash out of accounts that are no longer safe (e.g. all of them...).  I just don't know what my bank would say if I asked for $100k in small, unmarked bills. ;)  And I bet the gubermint would make it really hard (if they haven't already) to put that money back into the system later.

Miffed Microbiologist's picture

Me too msC! I just got out of surgery and was hoping to awake in a new sane world. Oh well.


Cursive's picture


I agree with you, but does anyone think anything will be done this year?  Not likely.  The "market" waited until just now to realize this?  Not likely.  This is one of those times when a thinking man wonders what the market makers have up their collective sleeves.

MsCreant's picture

Congress driving it down so they can BTFD maybe?