Goldman: "A Day Characterized By Broad-Based Liquidation"

Tyler Durden's picture


From Goldman's sales and trading desk

Equities suffer their biggest single day loss on the year with financials performing the worst. The uncertainty surrounding the Italian election was the clearest negative catalyst, but the price action in USDJPY surely adding to the nervousness. SPX ends down 28 to close 1488 (-1.83%). The DOW ends down 216 to close 13784 (-1.55%). The NASDAQ ends down 46 to close 3116 (-1.44%).

The VIX closes up almost 5 handles at 18.99. Today was also the largest day by volume for the front-month VIX contract.

Popular positions were under significant pressure in FX today. EURUSD and EURJPY initially hit on the back of Italian elections headlines. That eventually brought about EURCHF stops (sub 1.2260) and eventually significant USDJPY stops (through 93.00 and all way down to a low 90.85).

Treasuries rallied sharply on the day in line with the broader risk off move. 10s rallied nearly 10bp on the day though flows were skewed towards better selling – hedge funds selling in the belly in both cash and swaps as accounts looked to fade the rally. Later in the day flows shifted as tactical shorts looked to cover.  We also saw better paying from real money in the back end. In Europe, we saw a sharp reversal in Italy as polls suggested risk of a hung parliament – flows were skewed towards selling of 5y and 10y Italy from domestic, levered, and European real money accounts.

Gold finished up $11.60 to 1593.50 on a day characterized by broad based liquidation in the macro markets. Expectations of colder weather pushed natural gas prices much higher today with Apr trading up 12c to 3.47 (+3.61%). Base metals was a bit of a mixed bag but Nickel once again the biggest underperformer shaving $270 (-1.59%)

Credit was driven by the macro environment today as the credit indices led single names wider. IG19 ended +3.66bp to 90.125bp, and HY19 was -.69pts to 101.969pts. In Europe, iTraxx MAIN S18 closed +.38bp to 113.25bp, and iTraxx XOVER S18 finished +3.25bp to 443.25bp.

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Mon, 02/25/2013 - 19:52 | 3275784 kito
kito's picture

roll call: all those who dont give a shit what goldmans spews from its bowels>>>>>>>

Mon, 02/25/2013 - 20:07 | 3275826 DJ Happy Ending
DJ Happy Ending's picture

As a contrarian indicator, I give a shit.

Mon, 02/25/2013 - 20:32 | 3275908 Spirit Of Truth
Spirit Of Truth's picture

Well, I'm glad the reversal from Dow 14K hasn't involved World War least not yet:

Mon, 02/25/2013 - 20:39 | 3275937 Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture





We've had the shoeshine boy moment -->


"OMG that's amazing and that's so easy and I gotta do this […] I'm addicted!"


(Background of 1929's shoeshine boy for those in a coma:,_Sr.#The_Crash)




We've had the "stocks seem to have reached a permanently high plateau" moment -->   


Greenspan: "this means that it's going to be very difficult to get stocks down. it's very much like saying the earnings price ratio is at a level which it cannot basically go down very much"



Same thing in 1929:





Bernanke: "There is no bubble."-->  






Prepare for the great crash of 2013.  


All the devils are here.


Mon, 02/25/2013 - 21:39 | 3276116 kito
kito's picture

you need goldman to tell you the opposite of what you already know? really?

Mon, 02/25/2013 - 20:10 | 3275838 Shell Game
Shell Game's picture

"If you know your enemies and know yourself, you will not be imperiled in a hundred battles; if you do not know your enemies but do know yourself, you will win one and lose one; if you do not know your enemies nor yourself, you will be imperiled in every single battle." --Sun Tzu

Mon, 02/25/2013 - 20:19 | 3275855 Richard III
Richard III's picture

Well, so much for the Yankees this season, then.

Mon, 02/25/2013 - 20:34 | 3275894 Shell Game
Shell Game's picture

Ichiro Tzusuki!   ;)

Mon, 02/25/2013 - 19:53 | 3275785 NoWayJose
NoWayJose's picture

All I own is gold and cash. A nice day in the markets.

Mon, 02/25/2013 - 20:26 | 3275875 unununium
unununium's picture

Long PM's and short markets ... I live for days like this.

Here's to more like it.  But let's be real.   PPT probably already on the job.

Mon, 02/25/2013 - 20:44 | 3275959 disabledvet
disabledvet's picture

Maybe to ramp up gold and oil...but they've never touched equities and they never will...we'll see. "If the Fed's out of bullets the Fed's out of bullets." your trade is clearly bearish on employment let alone any job anywhere so I'm not ready to go there. Having said that there is an "endless well" for the big boyz to slash and burn and as such I think your caution is warranted.

Mon, 02/25/2013 - 21:36 | 3276108 lotsoffun
lotsoffun's picture

bennie b. - 'sell me your assets and name your price.  it's not my job to market to market, i have to trust you guys, because i work for your best interests and i know you won't do me wrong'


buy the dip.....  this is just algo's making money for the big guys.


Mon, 02/25/2013 - 21:33 | 3276097 lotsoffun
lotsoffun's picture

cantor's get paid to sing at events.  they'll haul bennie out tomorrow and he'll be singing no bubbles and lots more to print.


Mon, 02/25/2013 - 19:57 | 3275790 Kirk2NCC1701
Kirk2NCC1701's picture

I got out two weeks ago.  Sitting on cash.  :-)

Still waiting for backorder of Ag bullion.   :-(

Mon, 02/25/2013 - 20:04 | 3275816 Water Is Wet
Water Is Wet's picture

Goldman is a chode.

Mon, 02/25/2013 - 20:06 | 3275824 Pareto
Pareto's picture

Nominal yields on 10's to go negative......unless you still believe in Santa Claus

Mon, 02/25/2013 - 20:11 | 3275840 unrulian
unrulian's picture

...who doesn't believe in santa?

Mon, 02/25/2013 - 20:19 | 3275854 El Hosel
El Hosel's picture

Key reversal...Bitchez

Mon, 02/25/2013 - 20:29 | 3275897 klwilly
klwilly's picture

is this a 3x top on the nasdaq?  yahoo max view.  linear scale.  just ask'in.



Mon, 02/25/2013 - 20:36 | 3275923 icanhasbailout
icanhasbailout's picture

I'm surprised Yahoo didn't overlay the key parts of your graph with some market pumping Goldmanite press release.

Mon, 02/25/2013 - 20:33 | 3275913 Racer
Racer's picture

oh and guess what, unsurprisingly the overnight thinly liquid futures are soaring to liquidate any overnight shorts

Tue, 02/26/2013 - 11:40 | 3277664 Tursas
Tursas's picture

Squid in action!

Mon, 02/25/2013 - 21:00 | 3276013 gould's fisker
gould's fisker's picture

Since Goldman can play the giant squid and populate many of the central banks at the same time I don't see why it can't make todays "markets" go up and up and up.  What's wrong with them, how can they let a little "broad based liquidation" get in the way?

Mon, 02/25/2013 - 21:21 | 3276065 klwilly
klwilly's picture

Just wondering if the moral laws of gravity have been suspended and every scoundrel government will always suceed in raping its own populace.  


Tue, 02/26/2013 - 05:06 | 3276843 fukidontknow
fukidontknow's picture

I always knew that little gimp Bill English was a plant - ha ha leveraged buy out bitchz - Goldman fucked the Greeks and now Kiwi gonna get it Greek style ...

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