Stocks And FX 'Breaking Bad'

Tyler Durden's picture


While we may not all need to turn to meth labs for our income, it would appear the exuberant wealth creation of the last month or so is up against a tough place here - as credit has been warning all of January. S&P 500 futures are testing critical support here for the 5th time in 5 days, EURUSD is breaking below key support levels, and the decoupling with Europe is very concerning (as opposed to cleanest dirty shirt) as one only needs to look at last year to see that... Dow 14,000 and S&P 1,500 have been lost for now - get back to work Mr. Bernanke...

Birinyi and Bernanke are not happy...


The last time Europe and US decoupled...


and S&P 500 is testing key support...


as EURUSD breaks below initial support levels...


and remember credit has been dropping hints for a while...


Charts: Bloomberg and Capital Context

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Mon, 02/04/2013 - 13:23 | 3213627 vmromk
vmromk's picture


Mon, 02/04/2013 - 13:26 | 3213637 economics9698
economics9698's picture

Fuck the EBT card for the rich is running dry, riots to follow.

Mon, 02/04/2013 - 13:55 | 3213722 a growing concern
a growing concern's picture

Kevin Henry, please return to your Bloomberg terminal immediately and proceed to buy anything that's not nailed down. Thanks.

-The Bernank

Mon, 02/04/2013 - 14:38 | 3213854 NoDebt
NoDebt's picture

Yeah, where is Kevin anyway?  Has anyone seen him in the office today?

I'm not sure Kevin's work ethic is fully formed yet.  Kid thinks you can work twice as hard on Friday and then take Monday off.  He doesn't get that you have to show up for the asset-pumping responsibility EVERY DAY or you get disasters like we're having now. 

Mon, 02/04/2013 - 13:24 | 3213628 Glass Seagull
Glass Seagull's picture



"Stahcks, commahds, dollahs, dollah everythings!!"

Mon, 02/04/2013 - 13:23 | 3213631 eclectic syncretist
eclectic syncretist's picture

Goddamn printers just ran out of green ink.  Somebody get some #&*%%%'in green ink cartridges!!!!!!

Mon, 02/04/2013 - 13:23 | 3213632 Whiteshadowmovement
Whiteshadowmovement's picture

But Tyler, Goldman just told us the other day their 3, 6, and 12 month target for the euro are all the same at $1.40

Mon, 02/04/2013 - 13:26 | 3213638 disabledvet
disabledvet's picture

Those are YOUR targets..they're shorting this bitch jut they do everything else.

Mon, 02/04/2013 - 14:00 | 3213731 Whiteshadowmovement
Whiteshadowmovement's picture

No, no, it actually was Goldman, who had a little fun with us after successfully Stolpering the muppets:

"We do see some additional upside in EUR/$ and keep our 3-, 6- and 12-month forecasts at 1.40 but after some sharp FX moves early in the year, we consider it prudent to stick to the target. We close our recommendation for a potential gain of 3.3%."

Mon, 02/04/2013 - 13:24 | 3213633 FL_Conservative
FL_Conservative's picture

Hints are for putzes.  It's time for some SERIOUS action.

Mon, 02/04/2013 - 13:24 | 3213634 Stoploss
Stoploss's picture


Mon, 02/04/2013 - 13:34 | 3213653 a growing concern
a growing concern's picture

Who the hell buys at the S&P all-time high? That's 100% idiotic.

Tue, 02/05/2013 - 08:02 | 3215819 Stuntgirl
Stuntgirl's picture

Exactly one hour ago, at my bank in Europe, the director told me he is getting all his investment clients to buy Eurostoxx, Ibex, S&P. He actually said S&P is "cheap" right now.

"Its a pity you always do the opposite of what I reccommend, that's going to lose you some serious money this year."


Mon, 02/04/2013 - 13:31 | 3213648 Fix-ItSilly
Fix-ItSilly's picture

Now that the window of LTRO repayment has closed, what about the influence (or non-influence) of the Bernanke-Draghi USDEUR Swap on the above topics?  Funny how the USD/EUR exchange rate rose to the swap rate, with just an ever so small overshoot,  just in time for the LTRO unwind.

Mon, 02/04/2013 - 13:32 | 3213649 disabledvet
disabledvet's picture

What ZH needs to start doing (cuz The Players already know this) is start posting "price action." what this means is "volume spikes at a certain price." shorts can fight and battle (time to come out of hibernation?) but longs have built up a lot of ammo (especially since the Democrats are just like Republicans and allowing the price of fuels to surge thus giving the longs ENORMOUS amounts of firepower to choose their entry points.) Equity markets overall are far too big to be rigged (unless in your mind) so "how the numbers shake out" is deterministic...though not of course determined. In short "follow the Data."

Mon, 02/04/2013 - 13:32 | 3213650 thismarketisrigged
thismarketisrigged's picture

how is this possible.


the economy is doing great, housing is booming, markets are near all time highs, china is great, europe is recovering phenominally, the u.s is only getting better, this must be a misprint,


ha ha ha, if only all those talking heads actually read zero hedge and learned the truth. these economies stink, we are nowhere right now in the economy where markets should be near all time highs.


i hope we sell off sharply into close, and this is the beggining of the journey downwards to 600 on s&p and 5000 dow. it wont happen overnight, but lets hope with all the corruption in asia and europe, everything implodes and the fed cant do shit about it

Mon, 02/04/2013 - 13:35 | 3213659 SheepDog-One
SheepDog-One's picture

Well, at least the country got to see Beyonce shake her gold plated veejayjay around for a few minutes before the fleecing commenced.

Mon, 02/04/2013 - 13:38 | 3213675 Tsar Pointless
Tsar Pointless's picture

I didn't. I watched a "Columbo" movie from 1971 instead.

Much more entertaining. He may not have been as pretty, but beauty is only skin deep.

Or so I've been lied to about. LOL

Mon, 02/04/2013 - 13:40 | 3213680 SheepDog-One
SheepDog-One's picture

Yea, one of my very favorite things is 'Columbo'.

Mon, 02/04/2013 - 13:56 | 3213695 CaptainSpaulding
CaptainSpaulding's picture

Which one?  I am a huge Columbo fan. A young Steven Spielberg directed the Columbo episode Murder by the book which is one of my favorites. 1971 was a great year for Columbo. 

Mon, 02/04/2013 - 14:10 | 3213755 Jani
Jani's picture


I'll pretend you didn't say that.

Mon, 02/04/2013 - 13:41 | 3213684 ekm
ekm's picture

As I've said few hundred times so far, Primary Dealers are selling same batch of stocks to each other.


Unless I see 1000 dow pts drop per day, 3 days in a row, nothing is gonna happen.


Mon, 02/04/2013 - 14:15 | 3213776 Mark123
Mark123's picture

Yes indeed....real change only occurs when real people/funds decide to cash out of the stock market.  Since 2009 this has all been primary dealers running the tape (or whatever they call that).  All this is backed by central banks handing out 0 interest loans (liquidity) to their primary dealers.  This support has plugged the withdrawal of funds from the ponzi-market, but under that market is a great big massive void supported by nothing other than confidence.

The other big elephant in the room is the accounting standards that have been corrupted so all those liabilities can be safely ignored....making PEs look great.

And we all ask the same question...."what will the trigger be?".

Mon, 02/04/2013 - 14:26 | 3213816 ekm
ekm's picture

Oil price is always the trigger.

As Bush gave the order in 2008 to crap the market due to oil price, Obama will be forced to do the same,,,quite soon.

Mon, 02/04/2013 - 17:06 | 3214358 Panafrican Funk...
Panafrican Funktron Robot's picture

Indeed, look at the fucking tremendous COT spread.  Keep in mind, folks, it's at this price despite a negative GDP print. 

Mon, 02/04/2013 - 13:54 | 3213699 Headbanger
Headbanger's picture



Mon, 02/04/2013 - 14:03 | 3213734 FunkyOldGeezer
FunkyOldGeezer's picture

...and yet no-one has had any commentary concerning The Swiss Franc 's decoupling from the Euro peg? Those Swissies have been selling the Euro for a few weeks now, eh?


Mon, 02/04/2013 - 14:03 | 3213735 PUD
PUD's picture

There is no such thing as support let alone "key" support. Or psychological levels let alone "critical" psychological levels. Magic numbers were no impediment on the way up through them and they will be no impediment on the way back down through them.

Mon, 02/04/2013 - 14:04 | 3213739 css1971
css1971's picture

Wow. Look at AAPL go. Man that's got to hurt.

Mon, 02/04/2013 - 14:09 | 3213751 adr
adr's picture

Super Bowl commercials aren't for consumers, they're for the 1% watching the game that will base investment decisions on what they saw.

Once you realize advertising is actually geared to entice shareholders into buying stock, your eyes will awaken. You think the SodaStream ad was meant for consumers?

The Samsing ad killed Apple last night in the minds of investors.

Mon, 02/04/2013 - 14:26 | 3213815 falak pema
falak pema's picture

google down

Mon, 02/04/2013 - 14:06 | 3213745 adr
adr's picture

Earnings season is pretty much over for the big guys, the Euro can drop. In a couple months the Euro will strengthen again so all the US corporations can restate foreign profits in higher dollar values.

FX has really ben following that pattern for a while now. As long as you can keep shifting the shell with the pebble, you never have to actually let the person guess where it is. They never have to know you really put the pebble in your pocket.

The con game can continue until the conned realize they were taken. Most of the time they aren't happy.

Mon, 02/04/2013 - 14:17 | 3213789 orangegeek
orangegeek's picture

Another day, another indication that we heading south.  Let's see what Ben and Barry do.

Mon, 02/04/2013 - 15:47 | 3214100 Joe moneybags
Joe moneybags's picture

Looks like we'll get another opportunity to "shatter" DOW 14000.

Mon, 02/04/2013 - 16:06 | 3214157 Downside Profiteer
Mon, 02/04/2013 - 16:27 | 3214246 Mark123
Mark123's picture

pathetic to see them prop up the market...must maintain 1500 at all costs!

Mon, 02/04/2013 - 16:30 | 3214257 The worst trader
The worst trader's picture

Never gunna happen, BTFD, just like you are told.

Mon, 02/04/2013 - 18:59 | 3214666 luna_man
luna_man's picture



Let's spank'em some more...Just a little harder!


got back a little more today

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