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Cyprus Hill Of Worry Proves Too High For Stock Ramp

Tyler Durden's picture




 

For a few wondrous moments around 1430ET the Dow and TRANnies were green and all was well and the world could rest assured that government stealing private property was nothing to worry about. Then it seems some odd tin-foil-hat-wearing blog did the math to figure that there is no way the Cypriots get the vote. VIX had not been partaking of the exuberance BTFD rally as it seemed evident that managers chose to 'hedge' as opposed to 'sell'. Shortly after Europe closed, it was notable that market breadth shifted decidedly weak - though the indices pushed on higher until green was reached. Risk was highly correlated across all asset-classes today but shortly after Europe closed the USD began to rise once again. Gold notably outperformed (especially given USD strength), bonds were bid, and financials underperformed all day (as homebuilders managed gains on the worst NAHB print in six months). We suspect the afternoon was a little more reality than the morning's knee-jerk and volume dominated the last hour's dump. VIX bid to 12-day highs over 13.60% (+2.3 vols).

 

S&P futures dumped in the last hour on heavy volume and were caught by VWAP...

 

But VIX is leading the way as evidently protection and hedging was the order of the day...

 

As we surged to unch and then lost the gains...

 

Market breadth was weak all afternoon after Europe closed...

 

And across asset-classes, Capital Context's CONTEXT model (proxy for risk-assets) remained extremely highly correlated to US equities all day...

 

 

Charts: Bloomberg and Capital Context

 

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Mon, 03/18/2013 - 16:13 | 3344187 Mongo
Mongo's picture

YAY!

Mon, 03/18/2013 - 16:14 | 3344202 NotApplicable
NotApplicable's picture

Insane in the membrane!

Mon, 03/18/2013 - 16:20 | 3344246 McMolotov
McMolotov's picture

When tha shit goes down, ya better be ready...

http://www.youtube.com/watch?v=ThppEppMw5w

Mon, 03/18/2013 - 16:48 | 3344379 floydian slip
floydian slip's picture

Cypress Hill - Stoned Raiders

http://www.youtube.com/watch?v=vN1fA1F5gSE

1 for trouble, 8 for the road
7 to get ready when I'm lettin' off all my load

Mon, 03/18/2013 - 16:58 | 3344411 tickhound
tickhound's picture

 

 

See, violators will be prosecuted

by the reputed, undisputed, CYPRESS LOOTED,

Not so, NO there's no sellout

You ain't got enough DUCATS to shell out

Well I'm in front, and yo I feel great

Check out the story to the glory of the real estate

http://www.youtube.com/watch?v=QAXsButV2NU -Cypress Hill - Real Estate

Mon, 03/18/2013 - 17:00 | 3344423 tickertapeguide
tickertapeguide's picture

+1 Bring on the volume! "We don't need no water let that M*** F**** burn, burn M*** F***, burn!"

 

http://www.youtube.com/watch?v=WbAqWA-dxvw

 

www.tickertapeguide.com

Mon, 03/18/2013 - 16:41 | 3344341 Buckaroo Banzai
Buckaroo Banzai's picture

INSANE IN THE BRANE!!

Mon, 03/18/2013 - 16:15 | 3344214 EclecticParrot
EclecticParrot's picture

So very, very frustrating.  Ok, so the market opens up 3+ pivots down from Friday's close, understandable given the uncertainty, though the early "dumb money" always tends to overshoot, so we immediately rally to touch the second pivot by 10:30 -- perfectly fine, about 40 pts down, probably in line with the true nature of the 'crisis'.  Had we bopped around the rest of the day 10-15 points either way, it'd have made perfect sense.  But, NO -- here's where the algos take over,as they always do, planning hours in advance to end the day between the 1st and 2nd pivots, where we belong given all the hullabaloo, but first they take us up another pivot to squeeze shorts, and pause.  Was that enough mischief -- hell, no!.  Knowing where they're going to end, they start their typical 2:15-2:30 fake ramp toward the 4th pivot, which of course fails, but by then the shorts are gone and new longs are trapped, so we 'plunge' 2:30 -3:45 before the final cynical move back to VWAP (must be a coincidence), essentially where we were at 10:15, the day's obvious equilibrium, where any institutions ‘buying the dip’ had stopped and watched the news for the rest of the day.  So, is this just technology, is this just progress, or is this just a pile of shit?  No need to answer.  One can almost admire clever criminals (such as watching the subway scenes in Bresson’s “Pickpocket”), but this is like watching fraternity boys putting potatoes in teachers’ tailpipes.

Mon, 03/18/2013 - 16:18 | 3344236 NotApplicable
NotApplicable's picture

Ya know, this all might mean something...

if only there was really a market.

Mon, 03/18/2013 - 16:58 | 3344414 q99x2
q99x2's picture

Yes. That is right. It does mean something and something really big but it not very likely to show in the markets.

Mon, 03/18/2013 - 17:17 | 3344499 Being Free
Being Free's picture

Nice synopsis EP, and good conclusion...

but this is like watching fraternity boys putting potatoes in teachers’ tailpipes

Just wait till the sophomores on the top floors figure out if they all flush their toilets at the same time they can flood the lower floors with sewer water.  I'm pretty sure this is the plan; take the money and leave everyone else with shit.

Mon, 03/18/2013 - 19:26 | 3344957 Beam Me Up Scotty
Beam Me Up Scotty's picture

" but this is like watching fraternity boys putting potatoes in teachers’ tailpipes."

No, its more like watching frat boys put potatoes in their pants to make the girls "think" they have a big package.  Its not as big as you think girls.  Same with the economy, they got the giant potato in their pants, and its about to rot and stink.

Mon, 03/18/2013 - 16:17 | 3344224 IMA5U
IMA5U's picture

market is "overbought"

 

dunno if Cypress really was the driver for the fade

Mon, 03/18/2013 - 16:18 | 3344232 thismarketisrigged
thismarketisrigged's picture

i must say i am shocked, lol

i was just listening on cnbc, peter schiff from euro pacific capital was telling it like it is, saying how basically we are fucked here in the u,s, especially the banking system, because interest rates have been at 0 forever, and once they rise, they r going to rise sharply, and the whole system will implode, and then u see the faces of maria bartarmo, and the 2 other asshole guests basically laughing at that guy and looking at him look he is crazy.

 

also, i love how they described todays market action as a ''sell off'', when we didnt even fucking fall a half a percent. 

 

i fucking hate these fed members so fucking much

 

real crisis= no big deal

 

overrated issue, not even solved, just pushed down the road( fiscal cliff) 5 percent gain

Mon, 03/18/2013 - 19:48 | 3345067 SKY85hawk
SKY85hawk's picture

Reinstate Glass-Stegall.  Isn't that what helped send Keating to jail in the S&L crisis of 198x?

Glass-Stegal was done to protect the people from scurrilous bone-head bankers that only shoot for the moon with Other-Peoples-Money!

Oh yeah, the politicians that allowed these travesties are TBTF (Too Bought To Function),  duhhhhhh.

 

Stop talking about new legislation and reactivate that which is proven to be effective!

 

Mon, 03/18/2013 - 21:23 | 3345374 MeelionDollerBogus
MeelionDollerBogus's picture

As it is, the next “Peter Schiff was Right” will be an epic 1 hour documentary of 30 second to 5 minute clips of nonsense-tards mocking  him yet again, then collapse, then Schiff gloating over the corpses of their “investments” rotting in the rivers and the music starts all over again. They just never learn.

Mon, 03/18/2013 - 16:25 | 3344268 buzzsaw99
buzzsaw99's picture

usa equities are guaranteed to never go down by jpm and the fed. i want my money back bitchez.

Mon, 03/18/2013 - 16:30 | 3344294 Dead Canary
Dead Canary's picture

This is WOAR!

Mon, 03/18/2013 - 19:50 | 3345078 SKY85hawk
SKY85hawk's picture

Reinstate Glass-Stegall.  Isn't that what helped send Keating to jail in the S&L crisis of 198x?

Glass-Stegal was done to protect the people from scurrilous bone-head bankers that only shoot for the moon with Other-Peoples-Money!

Oh yeah, the politicians that allowed these travesties are TBTF (Too Bought To Function),  duhhhhhh.

 

Stop talking about new legislation and reactivate that which is proven to be effective!

 

Mon, 03/18/2013 - 16:31 | 3344300 Number 156
Number 156's picture

Dont worry.
They will let today slide, and pump the markets by Friday to end the week on a ramp job, for psycological impact, and to give Jim Cramer something to rant about. 

 

Mon, 03/18/2013 - 16:31 | 3344301 Hedgetard55
Hedgetard55's picture

Ben's got stawks' back, so BTFD.

Mon, 03/18/2013 - 17:06 | 3344434 scatterbrains
scatterbrains's picture

You should be thankful that thug ass nigga can print or he'd probably confiscate 10% of your cash in the bank to hold  SPX above 1500... and don't be hating cause I'z rehypothecatin.. bitchezz.

Mon, 03/18/2013 - 16:32 | 3344307 Randy Goodnight
Randy Goodnight's picture

There's always tomorrow.  They can ramp at will.

Mon, 03/18/2013 - 16:40 | 3344336 e m m
e m m's picture

ARD news is now running a headline: German politicians want to spare small savers.

Mon, 03/18/2013 - 16:40 | 3344338 Lama
Lama's picture

Chances of 10% gap down this week ? And what might cause it..can Cyprus exit Euro ?

Mon, 03/18/2013 - 17:07 | 3344458 dvsteenk
dvsteenk's picture

short squeeze to continue tomorrow i'm afraid... more than enough to off-set today's "plunge"

simply jaw-dropping that "they" managed to ramp it back up after the Cyprus gap-down

Mon, 03/18/2013 - 17:34 | 3344557 TheFulishBastid
TheFulishBastid's picture

Cops, come and try to snatch my crops 
These pigs wanna blow my house down Head underground, to the next town They get mad when they come to raid my pad 

Mon, 03/18/2013 - 18:02 | 3344660 thismarketisrigged
thismarketisrigged's picture

btw, has aapl become such a broken stock that the street must make rumors up to pump the stock?

 

how many fucking times have we seen aapl go up lately due to ''false'' rumors about a stock buy back, or other shit, and now today analysts come out and say how aapl may raise its dividend  and the stock goes up 12 plus dollars, or nearly 3 percent.

 

its become so comical.

 

 

Mon, 03/18/2013 - 19:47 | 3345065 SKY85hawk
SKY85hawk's picture

Reinstate Glass-Stegall.  Isn't that what helped send Keating to jail in the S&L crisis of 198x?

Glass-Stegal was done to protect the people from scurrilous bone-head bankers that only shoot for the moon with Other-Peoples-Money!

Oh yeah, the politicians that allowed these travesties are TBTF (Too Bought To Function),  duhhhhhh.

 

Stop talking about new legislation and reactivate that which is proven to be effective!

 

Mon, 03/18/2013 - 18:10 | 3344692 Piranhanoia
Piranhanoia's picture

I will keep my tin foil hat I learned how to make and use from Zero Hedge thank you very much.

Mon, 03/18/2013 - 18:24 | 3344733 chump666
chump666's picture

Told you punks not too short, good,  1.30 (also watched by HFTs, momo traders - stocks) is protected by the ECB and FED combo.  Cyprus is nothing to nobody, cept the Russians who using the Island to launder money anyways.

The markets blowing up it will be Asia, more so China as money leaks out (no safe havens, no collateral) and the credit bubble blows up.  Money printers WON'T be able to offset an Asian collapse.   Then we get that (China) we-distract-people-with-war move on Japan (Japan does the same)

Meantime, it's all an illusion baby...all an illusion.  Tight jam.

http://youtu.be/lS5TIcLJXTw

 

Mon, 03/18/2013 - 19:46 | 3345060 SKY85hawk
SKY85hawk's picture

Reinstate Glass-Stegall.  Isn't that what helped send Keating to jail in the S&L crisis of 198x?

Glass-Stegal was done to protect the people from scurrilous bone-head bankers that only shoot for the moon with Other-Peoples-Money!

Oh yeah, the politicians that allowed these travesties are TBTF (Too Bought To Function),  duhhhhhh.

 

Stop talking about new legislation and reactivate that which is proven to be effective!

 

Mon, 03/18/2013 - 19:14 | 3344916 Son of Loki
Son of Loki's picture
Home builder confidence declines for 3rd month

 

For the third straight month, sentiment among U.S. home builders declined in March, dropping two points on a monthly industry index.

 

http://www.nbcnews.com/business/economywatch/home-builder-confidence-dec...

Mon, 03/18/2013 - 20:10 | 3345157 The worst trader
The worst trader's picture

Can we short yet?

Mon, 03/18/2013 - 21:08 | 3345332 Ban KKiller
Ban KKiller's picture

So all the Russian money wins? How do you keep a bank closed for five days and not create just a tiny, little, bitty, doubt? Why do I not see this helping any fiat? What will it take for the sheeple to see how "derivatives" are not real money, storehouse, or value of any kind? You have to have a market for something to be of value...duh, uh-huh. Wanna buy some super cheap, discounted, halved Greek debt? Wait, you didn't ask the price! Oh.... and the "market" remains free. Define free? Ummm....well.....

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