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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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Thu, 02/28/2013 - 17:26 | Link to Comment ekm
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.

Thu, 02/28/2013 - 17:29 | Link to Comment Cursive
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!

Thu, 02/28/2013 - 17:41 | Link to Comment Fidel Sarcastro
Fidel Sarcastro's picture


Thu, 02/28/2013 - 17:43 | Link to Comment kito
kito's picture

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

Thu, 02/28/2013 - 18:07 | Link to Comment max2205
max2205's picture

Funny, unch....get real

Thu, 02/28/2013 - 18:44 | Link to Comment derek_vineyard
derek_vineyard's picture

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

Thu, 02/28/2013 - 19:28 | Link to Comment johngaltfla
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.

Thu, 02/28/2013 - 18:57 | Link to Comment slingshot
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

Thu, 02/28/2013 - 22:39 | Link to Comment Fidel Sarcastro
Fidel Sarcastro's picture

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

Thu, 02/28/2013 - 19:02 | Link to Comment clara-to-market
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.

Thu, 02/28/2013 - 17:24 | Link to Comment Temporalist
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? 

Thu, 02/28/2013 - 17:34 | Link to Comment lolmao500
lolmao500's picture

Illegals of course!

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

Thu, 02/28/2013 - 17:39 | Link to Comment ceilidh_trail
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.

Thu, 02/28/2013 - 17:48 | Link to Comment r101958
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.


Fri, 03/01/2013 - 03:02 | Link to Comment dunce
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.

Thu, 02/28/2013 - 17:55 | Link to Comment Temporalist
Temporalist's picture

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

Thu, 02/28/2013 - 21:30 | Link to Comment Desert Rat
Desert Rat's picture

what an utter moron

Thu, 02/28/2013 - 17:25 | Link to Comment lolmao500
lolmao500's picture

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

Thu, 02/28/2013 - 17:27 | Link to Comment ekm
ekm's picture

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

Thu, 02/28/2013 - 17:29 | Link to Comment magpie
magpie's picture

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

Thu, 02/28/2013 - 17:34 | Link to Comment buzzsaw99
buzzsaw99's picture

Bondzilla, lulz

Thu, 02/28/2013 - 17:40 | Link to Comment Dr. Richard Head
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!

Thu, 02/28/2013 - 17:50 | Link to Comment buzzsaw99
buzzsaw99's picture

bondzilla is a 2" tall plastic model

Thu, 02/28/2013 - 17:26 | Link to Comment Cursive
Cursive's picture

All this because the GRPN CEO quit?

Fri, 03/01/2013 - 00:33 | Link to Comment Godisanhftbot
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.

Thu, 02/28/2013 - 17:53 | Link to Comment Marley
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?

Thu, 02/28/2013 - 17:28 | Link to Comment francis_sawyer
francis_sawyer's picture

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

Thu, 02/28/2013 - 17:45 | Link to Comment Bam_Man
Bam_Man's picture

That triggered my involuntary gag reflex.

Maria reminds me more and more of a less-attractive version of Lilly Munster every day. It looks like they apply her make-up with a trowel and a spray gun these days.

Thu, 02/28/2013 - 17:41 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

High frequency donkey punching!

Thu, 02/28/2013 - 17:29 | Link to Comment jcaz
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.............

Thu, 02/28/2013 - 17:30 | Link to Comment helping_friendl...
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.

Thu, 02/28/2013 - 17:32 | Link to Comment's picture

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

Thu, 02/28/2013 - 17:32 | Link to Comment azengrcat
azengrcat's picture

Sh*t got real

Thu, 02/28/2013 - 17:32 | Link to Comment reader2010
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. 

Thu, 02/28/2013 - 17:35 | Link to Comment medium giraffe
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..."



Thu, 02/28/2013 - 17:35 | Link to Comment Number 156
Number 156's picture

The Higher this market gets, the scarier.

The snapback will be vicious.

Thu, 02/28/2013 - 17:36 | Link to Comment thismarketisrigged
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

Thu, 02/28/2013 - 17:36 | Link to Comment lolmao500
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..

Thu, 02/28/2013 - 18:27 | Link to Comment fuu
fuu's picture

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

Thu, 02/28/2013 - 17:39 | Link to Comment WTF_247
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.

Thu, 02/28/2013 - 17:43 | Link to Comment Bam_Man
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.

Thu, 02/28/2013 - 17:45 | Link to Comment EclecticParrot
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.

Thu, 02/28/2013 - 17:45 | Link to Comment Mark123
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.


Thu, 02/28/2013 - 18:01 | Link to Comment Edward Fiatski
Edward Fiatski's picture

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

Thu, 02/28/2013 - 18:16 | Link to Comment chump666
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)

Thu, 02/28/2013 - 19:24 | Link to Comment The worst trader
The worst trader's picture

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

Thu, 02/28/2013 - 20:10 | Link to Comment chump666
chump666's picture

For real?  Don't short this yet, you need a total futures (US) wipeout Asian session, you need Asia down over 2%, you also need Europe, more so the DAX down at least 3%.  Obama is a money printer, GOP are lame, The Fed are all in, with HUGE flows going into the ECB.  This is a last gasp market support.  Bernanke looks ill, beaten and broken (the weight of the world is crushing).

Obama bails out a bank/firm/crony this time around, he won't last till August.

Patience  my Gremlins.

Thu, 02/28/2013 - 20:57 | Link to Comment Dr_Lucid
Dr_Lucid's picture

Over the last 6-9 months what makes me want to puke are the hopium manufactured statements from mainstream media.  Gosh you would think these tool bags would melt if they called a spade a spade.  WTF?  Media reports headlines but the robots don't read them?

Today's moron comment was, " were down a bit."  A bit?  A fucking bit?  Like the iron bar in a horses mouth a bit?  What the heck is that?  Do they teach you the fine art of rhetorical masturbation in journalism school?  Any headline to make bad news seem like a non event is in fact good news?

Like a few days ago when from the high the S&P "CRATERED" or "SOLD OFF".  That is how it should be spelled out.  But the gym today all the talking heads could mention was how the record was "within reach" and "within an arms length" ...just down a bit for now.

Tyler has also been picking up pace thank goodness.  Tyler knows that his articles are being indexed by the spiders and get picked off on Twitter / Google Alerts  / TweetDeck and feeds.  To me its hilarious.  I see all these lipstick-on-a-pig headlines when I sort through my RSS and then WHAM there is ZH with a headline that sticks out like a sore thumb ( also ZH jacked up muscle homo man as the avatar on got that right I like my men hot and sweaty with all sorts of musk-els ).

Tyler.....keep it up with your market wrap headlines.  The spiders are not Bernack friendly and will report them as they see the H1.  Your affinity index wins out +1 and its tweaking your edgerank in the right direction.  Someone has to do it.

Thu, 02/28/2013 - 22:09 | Link to Comment DowTheorist
DowTheorist's picture

There are 4 volume patterns that suggest that a correction may be in the making:

Fri, 03/01/2013 - 00:28 | Link to Comment Godisanhftbot
Godisanhftbot's picture

 These charts are amazing and all but do they mean you guys mint money realtime and just come here after its all over to share this wisdom with us mere mortals?



Fri, 03/01/2013 - 03:13 | Link to Comment dunce
dunce's picture

Flash crashes are not easy to trade, i am looking for the bottom to fall out and the next fed stunt. Does history indicate the size of next super correction? What will be close to the bottom? I do not want to buy the dip if it is really a dive.

Fri, 03/01/2013 - 06:14 | Link to Comment The Heart
The Heart's picture

"I do not want to buy the dip if it is really a dive."

Been a watching this for the past week reading all the back up the truck stuff, and all this while the overwhelming desire to buy more silver has been abated by the funny feeling to hold back on buying. At this time in the wee hours, the silver is down again in the overnight activity. Watched it go from 28.53 to where it sits now at 27.97! So far, listening to the heart instead of the greedy mind has paid off.

Do ya think those banksters and moneychangers Inc. can all learn to be as good at gardening as they are at banksterism??

Fri, 03/01/2013 - 07:01 | Link to Comment Grand Supercycle
Grand Supercycle's picture

DOW futures 8 hour and daily chart still shows megaphone wedge pattern so a big move awaits . . .


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