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TICK Plunges As Suddenly Everyone Sells

Tyler Durden's picture


It took the algos a good hour of digesting the Fed's PR before slowly and surely, as we observed when noting the stealthy action in the VIX, the crowd shifted suddenly from the right side of the boat to the left. In the process, it pushed the TICK indicator well below 1000. But it is probably more notable that a modest 1% drop in the S&P is enough to bring up rumors of a "Markets in Crisis" special, and force all those who were buying on the low-volume levitation into a coordinated sell-off. New York Fed's Kevin Henry better show up soon or the last hour of trading will get messy without an invisible hand propping it up.


and volume explodes...


ES drops to the lower end of its up-trend...


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Wed, 02/20/2013 - 16:13 | 3260861 Edward Fiatski
Edward Fiatski's picture


Thank you very much.

Wed, 02/20/2013 - 16:15 | 3260871 The Gooch
The Gooch's picture

I think Kevin showed up on the "Hawk" fed-thread.

Hence the "down-ticks"

Wed, 02/20/2013 - 16:33 | 3260958 Ahmeexnal
Ahmeexnal's picture

And in a blatant coverup act, Kitco and other sites are now smoothing out gold and silver charts, erasing the vertical drops.
Sheeple are sheeple.
Keep stacking!

Wed, 02/20/2013 - 16:36 | 3260974 Say What Again
Say What Again's picture

The Bernank would never allow a selloff to happen. 

This market selloff can only be attributed to one thing.

Chineeeeese Hackers!!!

Wed, 02/20/2013 - 17:25 | 3261165 Charles Wilson
Charles Wilson's picture

Do you ever notice that when you walk by one of those big posters of Mao that his eyes seem to follow you around the room?

MUCH worse than Nancy Pelosi!




Wed, 02/20/2013 - 16:37 | 3260978 DoChenRollingBearing
DoChenRollingBearing's picture

It's still early in the game, but it IS beginning to look like the BEARS may have been right, after the bullish Barron's cover, then BAMM!

Wed, 02/20/2013 - 17:07 | 3261092 LawsofPhysics
LawsofPhysics's picture

Mini-rotation back to treasuries, yeilds must remain range bound, period.

Wed, 02/20/2013 - 16:45 | 3261020 Panafrican Funk...
Panafrican Funktron Robot's picture

One thing just recently occurred to me.  I had been reading about Paulson and Soros exiting GLD, and it donned on me that it's possible they merely redeemed their shares for physical gold bars, which I believe would still have been recorded as a sale of shares.  It would certainly help explain the unexpected large reduction in futures margin to cover over the loss of bars with paper.  

Wed, 02/20/2013 - 16:16 | 3260875 TruthInSunshine
TruthInSunshine's picture

Where's that bald headed fuck Hank "Asteroid DA14 Will Loop Back Around & Destroy The Earth If We Don't Get TARP/TALF/POMO INFINTY" Paulson when Kevin Henry needs him?

Wed, 02/20/2013 - 16:17 | 3260876 Edward Fiatski
Edward Fiatski's picture

One of them fuckers will show up just in time, it's just not the time yet. :)


Wed, 02/20/2013 - 16:25 | 3260922 derek_vineyard
derek_vineyard's picture

is the market going to give up yesterdays gains?   that is un-acceptable!

Wed, 02/20/2013 - 16:34 | 3260954 Edward Fiatski
Edward Fiatski's picture

Well, there's going to be a nice bearish engulfing on the EURUSD at least. Already hit the .618 fib, suppose there's a chance for a pullback till NY open and then SLAM like a motherfucker, U.S. CPI data comes out and we resume.

SPY, on the other hand, can suck a cock, along with Apple - pure bubble action.

Wed, 02/20/2013 - 16:34 | 3260965 Say What Again
Say What Again's picture

Mr. Wallace wants to know...

Do you think the action in the OIL market is any way related to what is going on right now?

Wed, 02/20/2013 - 16:40 | 3260983 Edward Fiatski
Edward Fiatski's picture

I think Tylers nailed it,

"We have noted the incessant slamdown in the precious metals markets, and highlighted that the only thing that can slow the flood of liquidity into each and every market is a rise in energy prices. The former represents 'trust' in the system; the latter represents 'real economics' as it squeezes the global economy forcing the central banks to pull back or tighten (see China's lack of rev repo recently)."

Oil manipulation to the detriment of the peasants is as old as JPM & RKFLR.

Wed, 02/20/2013 - 17:11 | 3261100 ZeroAvatar
ZeroAvatar's picture

The market's going to give up last YEAR's gains. And the year before that.  AND, the year before THAT.

Wed, 02/20/2013 - 16:30 | 3260945 Banksters
Banksters's picture

Hanky panky is livin large on the 200 million dollar tax free write off he got for taking the Treasury position.  Fucker is probably sipping mai tais right now.

Wed, 02/20/2013 - 16:57 | 3261064 TruthInSunshine
TruthInSunshine's picture

I think it was closer to 400 million tax-exempt fiatskis.

Just sayin'

Wed, 02/20/2013 - 16:24 | 3260915 rogeliokh
rogeliokh's picture

And now Economy so good that they "stop QE" ??? What a Bullshit, Wait for Automatic cuts to take

place in 1st of March And we go from there. f***ing morons selling gold but S&P is also down this time,

now what? Run into treasuries?? Go ahead, be my guest!


Wed, 02/20/2013 - 16:29 | 3260937 Ness.
Ness.'s picture

10 yr UST up a whopping 4 ticks today.  haha - fuck 'em all.

Wed, 02/20/2013 - 16:13 | 3260864 Mongo
Mongo's picture

Gold is cheap bitchez!

Wed, 02/20/2013 - 16:33 | 3260956 scatterbrains
scatterbrains's picture

and it can get a lot cheaper quickly.  While I don't believe in Elliot wave monbo jumbo there are bits of it that do hold some truthyness such as C wave type corrections or capitulation wipe outs which mark the END of a correction and cleans out enough weak hands to begin to revert back to the long term trend.   Looking at a chart of gold on a weekly basis has that feel to it.. we could knife down much lower and we should all welcome it  as it indicates we are near the end of the corrective phase  both in time and price within the next few weeks.

Wed, 02/20/2013 - 16:38 | 3260982 toothpicker
toothpicker's picture

"corrective phase" wtf are you doing here Blythe?

Wed, 02/20/2013 - 16:53 | 3261044 scatterbrains
scatterbrains's picture

I'm saying for the 1st time since Sept of 2011 the gold market is acting like it's nearing the end of a consolidation where the bull market can begin another longer term leg higher.... but it could be a few more weeks and maybe 200 dollars lower.  If your over levered you'll get kicked off the bus first though.

Wed, 02/20/2013 - 16:13 | 3260866 RSBriggs
RSBriggs's picture

Burn, baby, burn...

Wed, 02/20/2013 - 16:18 | 3260885 McMolotov
McMolotov's picture

Die motherfucker, die motherfucker...

Wed, 02/20/2013 - 18:47 | 3261422 negative rates
negative rates's picture

Be careful what you wish for, it just may come true.

Wed, 02/20/2013 - 16:15 | 3260868 LawsofPhysics
LawsofPhysics's picture

The crowd?  Does a computer cluster now constitute a "crowd"?  I am confused.

Wed, 02/20/2013 - 17:01 | 3261076 The Thunder Child
The Thunder Child's picture

Brings new meaning to the phrase 'cluster fuck'

Wed, 02/20/2013 - 16:15 | 3260869 Glass Seagull
Glass Seagull's picture



"Bohlz doo dah wohlz."



Wed, 02/20/2013 - 16:25 | 3260918 Frank N. Beans
Frank N. Beans's picture

hey Glass!  You're cracked!



Wed, 02/20/2013 - 16:16 | 3260873 Say What Again
Say What Again's picture

I keep a ratio of (DOWN Vol) / (TOT Vol) up at all times.

This ratio is pushing 90%.


The reverse -- (UP Vol) / (TOT Vol) was only around 60% for each of last 30 "BULLISH" sessions.

I leave the analysis as an exercise for the reader.

Wed, 02/20/2013 - 16:17 | 3260877 medium giraffe
medium giraffe's picture

So long and thanks for all the pips....

Wed, 02/20/2013 - 16:17 | 3260880 Cursive
Cursive's picture

Love the boat analogy.  There won't be enough life boats for all the hedgies, portfolio and pension managers and "financial planners" once this "Market" starts taking on water.

Wed, 02/20/2013 - 16:31 | 3260951 BoNeSxxx
BoNeSxxx's picture

We all love the boat analogy,...

In spite of the fact that we all survived 'nautical accidents' that left our PMs resting on the sea floor, we maintain a certain fondness for the little buggers.

Wed, 02/20/2013 - 17:12 | 3261109 Liquid Courage
Liquid Courage's picture

But now there's also the new "Cruise Ship Adrift" nautical disaster meme (Costa Allegra, Carnival Triumph)


Market Loses Power As HFT Super-Computer Catches Fire

DOW-JONES Drowns In Sea Of Its Own Excrement

Stunned Fed Official (wiping brown slime from her eyes) comments: "Whoever thought those algos were flammable? The little fu**ers went up like Thermite bombs!"

Wed, 02/20/2013 - 16:18 | 3260886 kaa1016
kaa1016's picture

Look at the monthly SP-500 chart. Triple top going back to 2000.

Wed, 02/20/2013 - 17:17 | 3261133 ZeroAvatar
ZeroAvatar's picture

Yup.  Next stop: Bargain Basement.


(Elevator's right over here......)

Wed, 02/20/2013 - 16:18 | 3260889 Irelevant
Irelevant's picture

Gold is a great asset in deflation/inflation. I don`t understand all this talk about deflation, gold is the best performing asset in deflation, as IT HAS NO COUNTER PARTY RISK!

Anyway deflation is a surreal scenario in our context.

Wed, 02/20/2013 - 16:19 | 3260892 FreeMktFisherMN
FreeMktFisherMN's picture

Genius last line, Tyler. That 'invisible hand'is not quite what Adam smith meant.

Wed, 02/20/2013 - 16:21 | 3260899 nobusiness
nobusiness's picture

I've gotten my ass kick on the last 5 dips.  maybe this one will last more than 3 days?

Wed, 02/20/2013 - 16:24 | 3260903 Professor Fate
Professor Fate's picture

As everyone knows, the "Bernank" is in a box. When the the GPU (Great POMO Unwind) begins, it may well be the SHTF moment of the last 100 years.  The 30 year at 8%+.  Markets down 40%.   

Fate the Magnificent

"Push the Button, Max"

Wed, 02/20/2013 - 16:22 | 3260905 nobusiness
nobusiness's picture

Almost 3:30 and time for Ben to scare the shorts out.  I don't know this one feels different

Wed, 02/20/2013 - 16:29 | 3260938 akarc
akarc's picture

fucking scared me into Faz soon as the mins came out.  Been saying gold is acting funky, oil acting funky. Remember 2008?

Of course tomorrow it will be different

Wed, 02/20/2013 - 16:44 | 3261009 Edward Fiatski
Edward Fiatski's picture

Take profits, sit this one out. NY 3:30 PM is a very dangerous time period post-2008. :)

Wed, 02/20/2013 - 16:50 | 3261041 akarc
akarc's picture

correct as we can see. the fight is on.

Wed, 02/20/2013 - 16:56 | 3261060 akarc
akarc's picture

And at 3:53 I defer to your wisom sir so that we may live to fight another day.

Wed, 02/20/2013 - 16:23 | 3260906 fonzannoon
fonzannoon's picture

we all get worked up over dow -90 pt days now? 

Wed, 02/20/2013 - 16:37 | 3260975 fuu
fuu's picture

People still get worked up over any of this? People seriously need hobbies.

Wed, 02/20/2013 - 16:23 | 3260910 Rick Blaine
Rick Blaine's picture

This is it!!!!!!!!!!

Wed, 02/20/2013 - 16:47 | 3261025 Spastica Rex
Spastica Rex's picture

You wish.

I mean, I do too, but get real.

Wed, 02/20/2013 - 16:57 | 3261063 Dr. Engali
Dr. Engali's picture

I'd like to believe that, but more than likely a bunch of shorts are thinking The same way, and will jump on this tic down just to be squeezed out by the Bernank later.

Wed, 02/20/2013 - 16:23 | 3260911 PUD
PUD's picture

What a sad commentary of the state of things when "investing" is measure in tics and minutes....the sooner prechters dow 400 call is realized the better

Wed, 02/20/2013 - 16:24 | 3260913 Skyprince
Skyprince's picture


Wed, 02/20/2013 - 16:24 | 3260914 nobusiness
nobusiness's picture

wait for it 5 Million buy on the SPY will come shortly.  Plunge Protection Team has been activated

Wed, 02/20/2013 - 16:24 | 3260917 GoldenGal
GoldenGal's picture

OMG!!! What am I doing with all these deflating useless pms...I could have bought netflix instead!!!

Wed, 02/20/2013 - 16:39 | 3260985 Jonas Parker
Jonas Parker's picture

Methinks there are readers here who don't know sarcasm when it bites them on their algos...

Wed, 02/20/2013 - 16:25 | 3260920 Piranhanoia
Piranhanoia's picture

Boom goes London,  Boom Paris.  Algo eats what Algo sees.  Howabouta new game show "computers gone wild"   "crazy machines buying food they don't eat",  "out of control bots doing nasty things to living beings",  "fast computers launching slow missiles to ensure compliance"  

Wed, 02/20/2013 - 16:28 | 3260929 nobusiness
nobusiness's picture

running like roaches when the lights come on.  Could be worse than a fire in a Brazilian disco

Wed, 02/20/2013 - 16:28 | 3260931 Frank N. Beans
Frank N. Beans's picture

holy shit, thanks ZH for the earlier article on HYG/VIX relativity indicating to maybe short this sucker.  I just bought some SDS after that, just in time!!!!

Wed, 02/20/2013 - 16:28 | 3260932 Dr_Lucid
Dr_Lucid's picture

I think this is just a test to see how stable the markets are if the artificial POMO buying is stopped.

Kind of like pulling your finger out from the dam to see just how bad the leak is before you plug it back in again.

Wed, 02/20/2013 - 16:30 | 3260940 Al Huxley
Al Huxley's picture

Huh, so looks like once again the Fed proves to itself and everybody else that you can't fuck over the PMs by threatening to take away the punch bowl without also breaking the stock market.  Tough luck Fed boys and girls, but apparently the market's either dumb enough to believe your bullshit or smart enough to call your bluff.

Wed, 02/20/2013 - 16:32 | 3260955 fonzannoon
fonzannoon's picture

i am waiting for the cnbc segment on how the fed are acting like a bunch of desperate clueless animals. should be coming up soon.

Wed, 02/20/2013 - 17:06 | 3261086 Panafrican Funk...
Panafrican Funktron Robot's picture

Gold priced in Euros dropped a whole 0.41% today.  What an epic crash!

Wed, 02/20/2013 - 18:10 | 3261330 css1971
css1971's picture

Gold in GBP is bascally unchanged.

This was a dollar move.


Wed, 02/20/2013 - 16:31 | 3260946 nobusiness
nobusiness's picture

Let's be honest.  Who is crazy enough to be buying stocks right now this minute after a huge run.  Even the dumbest coolaid drinker should have the sense to wait for a 3 % correction

Wed, 02/20/2013 - 16:31 | 3260947 TuesdayBen
TuesdayBen's picture

Whoever's in charge of the Invisible Hand at the Fed must simply have dozed off briefly.

Wed, 02/20/2013 - 16:33 | 3260959 akarc
akarc's picture

This a test, it is only a test. 

Wed, 02/20/2013 - 16:34 | 3260962 buzzsaw99
buzzsaw99's picture

ask not for whom the (top calling) bell tolls.

Wed, 02/20/2013 - 16:37 | 3260976 Banksters
Banksters's picture

Bernanke just released the following update.


As you know, timmy is gone.   That putrid shit was good at one thing, tossing fed governors salad.  Our qe comments are related largely to crusty assed voting members not getting ye old rimm job.


Hopefully, this straightens up all confusion regarding qe.

Wed, 02/20/2013 - 16:44 | 3260993 razorthin
razorthin's picture

I still think this ridiculous levitation is Obama's sequestration buffer.  But it might collapse before the finish line.  sniff sniff

Wed, 02/20/2013 - 16:44 | 3261007 caimen garou
caimen garou's picture

bozo ben will come to the rescue shortly

Wed, 02/20/2013 - 16:46 | 3261014 EclecticParrot
EclecticParrot's picture

"Hello, this is Jon Hilsenrath"

"Jon?  This is Ben.  Hey, I don't know if you've seen the market's over-reaction to our innocuous little minutes, but this might be a good time to get something out on the website.  It's 3:44, and the end-of-day 3:52 algos are waiting for their instructions."

"Should I say some of you still see "strong headwinds", or some such nonsense?"

"That'd be perfect.  Thanks, Jon"

"No problem.  Bye."

Wed, 02/20/2013 - 16:47 | 3261024 Caracalla
Caracalla's picture

Why aren't people BTFDing this afternoon???

Wed, 02/20/2013 - 16:49 | 3261029 razorthin
razorthin's picture

An actual dip is requisite.  I await that too.

Wed, 02/20/2013 - 16:49 | 3261032 Tee2green
Tee2green's picture

well said 

Wed, 02/20/2013 - 16:55 | 3261053 orangegeek
orangegeek's picture

And the US Dollar is rocketing while the Euro, Yen, GPB and CDN are in the tank.


If the downside momentum picks up, it's going to get messy.  Fed will be buying everything they can over the next few days - weaken the USD and prop up markets.

Wed, 02/20/2013 - 16:54 | 3261054 Trying to Understand
Trying to Understand's picture

Let me know when it has dropped at least 5% in one day... THEN I'll get damned excited!!

Wed, 02/20/2013 - 16:57 | 3261058 helping_friendl...
helping_friendly_book's picture

I think they changed Kevin henry's password!

Colossal margin calls.

Beautiful man. Can we make -20 on the S&P?

Wed, 02/20/2013 - 16:56 | 3261061 resurger
resurger's picture

Benny et al are "Dithering"

Wed, 02/20/2013 - 17:07 | 3261089 q99x2
q99x2's picture

Quick. BTFD.

Wed, 02/20/2013 - 17:08 | 3261095 Panafrican Funk...
Panafrican Funktron Robot's picture

This has bear trap all over it btw.  

Wed, 02/20/2013 - 17:22 | 3261157 Mesquite
Mesquite's picture

So...Who was the Mr. Big that placed the 11.4 Mil $ short on the mkt a couple days ago..?? Nice to be an insider...

Wed, 02/20/2013 - 17:13 | 3261116 catacl1sm
catacl1sm's picture

Update: it got ugly. lol

Wed, 02/20/2013 - 17:26 | 3261171 ZeroAvatar
ZeroAvatar's picture

If the Dow is 'forward looking', I'd say it got behind and has about 6- months-in-the-rear-view of catching up to do.

Wed, 02/20/2013 - 17:43 | 3261235 Bryan
Bryan's picture

Just as the FOMC came out I felt a great disturbance in the Force, as if millions of voices suddenly cried out in terror and were suddenly silenced. I fear something terrible has happened.

Wed, 02/20/2013 - 17:43 | 3261237 Tombstone
Tombstone's picture

You call this a sell-off?  Nothing more than a few insiders, cheaters and computers locking in recent gains.  The socialists will never allow the market to fall as long as they can print the bucks to keep it afloat. 

Wed, 02/20/2013 - 19:15 | 3261505 Number 156
Number 156's picture

You can print, but at some point, it will technically cost 1 dollar to print 1 dollar.

Then hell breaks loose.

Wed, 02/20/2013 - 18:52 | 3261444 TraderTimm
TraderTimm's picture

After reading ZH for a while you tend to get jaded about the excited commentary over an impending drop. Here's the script - yes, the market will dash itself on the rocks below eventually, but for now, prepare for an inverse of what happened today.

Yeah, I hate it too - but I can't ignore the fact that any decline has been met with an equally idiotic rise. Someone wake me up when this sucker actually falls apart. That I'd like to see.


Wed, 02/20/2013 - 19:16 | 3261491 Number 156
Number 156's picture

1% drop isn't that much in my opinion.

Be patient. Its coming.

.. we now resume our regularly scheduled programming.

Wed, 02/20/2013 - 19:49 | 3261594 stormsailor
stormsailor's picture

wonder when that 1427 gap on the /es is going to get filled?  sumbitch has been sitting there since january 2.   made my first coin in the market on buy orders at the bottom of gaps, but this has been there nearly a quarter.  goes against all the oldschool rules.

Thu, 02/21/2013 - 00:34 | 3262283 helping_friendl...
helping_friendly_book's picture

you have been served?


you seem to have more fortitude than I?

I let my usd, rmb, languish unable to make a move.

I know any move will punish me.

I pile into usd and rmb.

soon into francs.

wtf! what shall I do?

character zero. 

Wed, 02/20/2013 - 19:49 | 3261595 Hannibal
Hannibal's picture

All you "paper" holders are gonna get screwed to Zero!

Thu, 02/21/2013 - 00:28 | 3262273 helping_friendl...
helping_friendly_book's picture

Character Zero. 

Thu, 02/21/2013 - 00:29 | 3262276 helping_friendl...
helping_friendly_book's picture

step into the freezer.

freezer w/ a tweezer?

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