Stocks Plunge To Red As 'All-Time High' Hopes Fade

Tyler Durden's picture

We came so close. Every trick in the bag was pulled to run stops and get the momos to take us into virgin territory for retail investors following the Dow. Think of the headlines on the news tonight... But alas, we will have to wait for tomorrow's POMO to see if it comes then. From the moment voting began, equities rolled over and as the slide picked up speed so did volume and trade size. We noted that Bonds and FX markets were largely unimpressed by equity's lurch for the highs, and sure enough, stocks rotated lower into the close but still green for the month of February (just to ensure the headlines remain positive). S&P futures dropped 1% off their highs into the close and the deadbeat volume of the dribble higher surged above average. Treasuries ended the day -2bps (-8bps on the week so far) with 10Y back under 1.90%; the USD rallied as JPY and EUR weakened taking DXY up 0.6% on the week; VIX's bearish divergence from yesterday seemed prescient as it snapped higher to 15.5% on the day suggesting caution was high into the close.

S&P 500 futures... paused at VWAP then the real selling began...


It seems since the Italian election that the markets have diverged...


The top-tick in S&P futures coincided with the under-side of the up-trend channel from the last three months...


VIX was not playing along with stocks today...


and nor were bonds... Equities collapse recoupled them with Gold post Italy but bonds remain far less enamored still...


or FX.. (as EUR and JPY weakness led the USD higher)...


After adjusting Capital Context's CONTEXT model (of broad risk-asset perspective) for the disconnect yesterday, it was clear that once again today was another 'disconnect' day but the collapse into the close snapped equities back towards reality... over the two days we are still 25 points rich in ES to CONTEXT...


Charts: Bloomberg and Capital Context


Bonus Chart: Not been the best week for Mr. Ackman...

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ekm's picture

There's no such a thing as 'stocks plunge'.


Traders at primary dealers simply stopped bouncing the same batch of dow stocks around to each other, you know, took a piss, shot some cocaine etc and TEMPORARILY left a vacuum.

That's it.

Cursive's picture


Thats ridiculous!  This is a deep NBBO, highly resilient market!  Best we've ever had!  Thank gawd for HFT, quote-stuffing, sub-penny quotes and volume rebates!

kito's picture

traders still play with cocaine???? i thought that went out in the 80s...........................

max2205's picture

Funny, unch....get real

derek_vineyard's picture

my dad might jump off a bridge tonight he's 100% long mutual funds

johngaltfla's picture

Cocaine has become more chic and sophisticated now.


It's called "crack" now.


"Cocaine" went out of style with Wrangler jeans, Brett Favre, and Eagles reunion tours.

slingshot's picture

check out the couple 25k es blocks in the last minute of trading  -  hit 1509  on 25k block    10 seconds later was at 1512

Fidel Sarcastro's picture

What???  The low tick b4 the close was 09.25

clara-to-market's picture

The Dow will climb to 39,000.

My poor old mother told me so.

She's never wrong.

No kidding.

Temporalist's picture

DOW goes negative?  That's unpossible!

170 million jobs lost to $85 billion in cuts...that's $500/job.  Who are working these jobs for $500 Ms. Waters? 

lolmao500's picture

Illegals of course!

And the $85 billion in cuts are really around $40 billion in cuts.

ceilidh_trail's picture

Good Lord, did that stupid (one step removed from welfare queen) woman really state 170 million jobs? The population of the US (including children, old people and welfare/obamaphone recipients) is only 340+million. Waters is a retard; as are the slugs that voted for her.

r101958's picture

Mon, 01/28/2013 - 11:31 | 3191570 new r101958

"Every time the talking MSM heads spout about how the Dow is just about to reach historic highs I want to shout 'SO WHAT?'. All one needs to do is go to and enter the 2007 Dow peak of 14093 and then hit the calculate button. They would see that 14093 in 2007 is worth 15605 today. So we actually have another 1800 to go before the market level is comparable. Of course, nobody mentions this. Another diversion and farce courtesy of the MSM."

I am even more sick of it now. They also never mention that it took only 5 trillion in Fed debt to get it here.


dunce's picture

GIGO, i am the only inflation calculator i believe, and by my reckoning the figure is closer to 19,000. I am sure that the site is honest, but there is no good data to input. Every govt. agency spewing numbers is in the service of our corrupt president. If you can find private sector data you might have something useful.

Temporalist's picture

Here is a video link to the elected official stating 170 million jobs lost; she even explains what QE is.

lolmao500's picture

Can Bondzilla show up already and force these cocksuckers to really cut the budget??

ekm's picture

The answer is no, because the Fed/Gov is buying all bonds.

magpie's picture

Bondzilla can always assault the non-price controlled segment, below the 7-year.

Dr. Richard Head's picture

Oh no, the debt has got to go

Go go bondzilla

Oh no, here comes Benny-O

Go go bondzilla!

buzzsaw99's picture

bondzilla is a 2" tall plastic model

Cursive's picture

All this because the GRPN CEO quit?

Godisanhftbot's picture

 No, it's because he laughed about.  Just imagine, he got paid all that good coin to f#%k up the co.


 I''d laugh too.

Marley's picture

Surprised?  I like what Woodward said; "Woodward derides the law as some petty, trivial annoyance ("this piece of paper") and thus mocks Obama's weakness for the crime of suggesting that the law is something he actually has to obey."  "Can you imagine Ronald Reagan sitting there and saying 'Oh, by the way, I can't do this because of some budget document?' Or George W Bush saying, 'You know, I'm not going to invade Iraq because I can't get the aircraft carriers I need' or even Bill Clinton saying, 'You know, I'm not going to attack Saddam Hussein's intelligence headquarters,' as he did when Clinton was president, because of some budget document."

What the fuck are the elites up too?

francis_sawyer's picture

Does this mean that Maria Bartiromo is going to have to perform some 'kink style tricks' this evening?

jcaz's picture

Nah, it was just the 27,000 S&P puts I bought at the close-  I've decided to save the market.............

helping_friendly_book's picture

snp crashing.

I haven't seen a finish like that.....ever?


The last 12 minutes it tanked hard.

That was a sanctioned freefall.

tomorrow should be interesting.

might buy some spxu ah.'s picture

I am looking forward to a nice cruise on the SeaQuester....thanks Obama and Congress!!!

reader2010's picture

Consumers of the financial market got consumed and undollared again by the same financial market. Guess there is really nothing new under the sun. 

medium giraffe's picture

"Sure Betty, right now we're not too sure what happened near yesterday's close, but it looks like the selling pressure in Herbalife may have spooked investors in the short term, but the good news is Betty, that futures are looking green as we go into the opening bell Betty, so we may seen confidence returning in these markets today Betty, and with that Betty, we're going to send it back you Betty"

"Thanks Dom, I guess we'll just have to see how this one plays out.  Now, realty investors are getting excited at the prospect of another housing boom here in the US..."



Number 156's picture

The Higher this market gets, the scarier.

The snapback will be vicious.

thismarketisrigged's picture

ha ha ha , fuck u wall st u fucking bastards. u guys all had ur party hats on to get past 14,164 on the dow and set a new all time high, but now u guys will need to get 111 pts to surpass that number tomorrow.


with that being said, i fully believe ( sadly of course) that these fuckers will make sure its gets that milestone tomm, no matter the bad news we get tomorrow.


but for today, all i can say is , fuck u cramer, fuck u bernanke, fuck u wall st, fuck u obama, u didnt get the record high today, and i hope we never reach it. i hope we go down from here, but im sure bernanke has other plans.


but for at least 1 day, take ur party hats off wall st, u didnt get it today u bastards

lolmao500's picture

Call me when the DOW drops 1000 points in 10 minutes like ... otherwise meh.

Remember May 6 2010... all that screaming and panicking... music to my ears..

fuu's picture

Too bad we have no audio of the first TARP vote, that was a nice waterfall.

WTF_247's picture

Most of the actual selling happened in the last 20-30 seconds when someone dumped the futures 5pts+ right at the close.


Usually they wait until the close happens to do a huge move like that - looks like someone's clock was off and they jumped the gun.

Bam_Man's picture

Just wait until July and August. It's going to be a long, hot summer throughout Southern Europe. Going to get very interesting then, if not sooner.

EclecticParrot's picture

Annoying day to trade (after a few promising sessions earlier this week):  low ADX (trend) whipsawing all morning, then the cowardly lunchtime manufactured ramp (as chronicled by Tyler in an earlier post) which pushed to new days' high, making many traders wary of late-day shorting, so I'll bet those not glued to CSPAN missed the 3:15 plunge which, of course, reserved 75% of the magnitude for the final 3 minutes, only after day-traders were out.  Signs were there for a 3:00 short, but they got in our heads, didn't they.  Still, this week I'd say it's been Traders 3, Robots 1, the best we've seen all year.

Mark123's picture

Shocking this would happen on the last day of the month!!!!!  I am losing confidence in the con men that run this show!


This would not have happened in a really professional organization like the WWE....amateurs.


Edward Fiatski's picture

Our condolences if you were left holding the bag at 1514.

chump666's picture

See what futures do we need a crash there, down over 2% or no dice, Asia down over 2%, Europe, DAX over 3%, EUR tanks, DXY hits 82, 83.  It''s all about the HFTs (market close) and jawboning from the Fed or ECB ( a NY Fed subsidiary).

Last attempt at a correction was quashed after hours when EUR went bid and USD sells were in overkill (EUR swaps)

The worst trader's picture

Went short on Thursday, added Tuesday, felt the pain Wednesday, this time will be different.