Biggest Drop In A Month For Stocks Led By Big Bank Battering

Tyler Durden's picture

Goldman Sachs and Morgan Stanley are down 6.5% on the week (and even BofA has turned red on the week) as US equities have started to show 'slight' strains on European fears (as well as global PMIs and US earnings - what else is there?). Homebuilders gave up all their week's outperformance in the first hour of the day. Dow Transports are down 2.5% on the week now - notably underperforming and reverting their outperformance. VIX surged 1.25 vols to 14.00% - with protection remaining bid relative to stock's modest drop so far. While Treasury yields pushed lower all day (-6bps on the week) as did WTI (-1.5% on the week now), gold and silver flatlined after the spike higher this morning (both up 1.4% on the week). JPY strength was a key factor today as carry-trades were unwound. Risk-assets in general were once again highly correlated as credit tracked lower closing at its lows of the day like stocks. Equity trading volume was above average but average trade size is still falling and S&P 500 futures inability to hold VWAP into the close suggests institutional selling pressure is picking up.



Trannies leading it lower...


but the major financials (as we warned post-CCAR deja vui from last year) are tumbling...


VIX is bid relative to stocks but breadth was weak today as selling was clear in underlying names as well as index protection...


FX markets stayed relatively rangebound this afternoon (if you look at the Dollar Index) but there were some significant shifts away from the EUR...



and HYG (high yield credit) tumbled in the last hour or so (with manic revrting ramp at the last second) putting pressure on risk-assets (as Capital Context's 'SPY Arb' model shows in the lower chart)


Chart: Bloomberg and Capital Context


Bonus Chart: All the wonderment at the strength of the homebuilders as some indicator that things are rocking and rolling and we are off to the races - we thought this chart might help...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
chubbyjjfong's picture

You groin itching, Indian food belching, sweaty, hairy, xenical fart smelling, heaving fat piece of gutter licking, sasquatch’s crotch sniffing, fallopian tube weeping, sack of lard shit banking fucks!

vulcanraven's picture

LongSoupLine would be proud

kaiserhoff's picture

Jim Grant just carved Ben a new one on CKGB.  I'm sure the Tylers will have it up soon.

The only thing he endorsed was gold miners.  Said the whole damn thing is an exercise in price fixing.


SheepDog-One's picture



idea_hamster's picture

"...fallopian tube weeping..."

Wait ... wut?

McMolotov's picture

Bankers and trannies going down...

max2205's picture

Tvix needs to get to 1, 000 to hit a 52 week high.  

redpill's picture

But I thought Cyprus didn't matter?

knukles's picture

"bite the fucking dick"
Our new banker greeting

"Hi, Mike. Bite the fucking dick"

toys for tits's picture

TBTF= Torture Bankers, Then Fire 

Catflappo's picture

Fuck you Kuroda....   (need to say moooaaarr)

knukles's picture

Where's Krugman to explain all this dear mongering and silliness?

knukles's picture

Typing badly Got stuff on my fingers

Meant fear... :)

Dumb fuck doesn't get it that is not whether we're fearful, it's that we anticipate others becoming fearful that makes gold the deal of the lifetime.

May he be eaten by a starving Russian oligarch

IridiumRebel's picture

That's why I rushed in to comment rendering it forever MOAR.

IridiumRebel's picture

Good. Fuck Too Big to Fail.

Ineverslice's picture


Cisco takes a hit.

q99x2's picture

They ain't seen nothing yet. They screwed up God's work and its payback time.

knukles's picture

Now that's spiritual. :)

Wile-E-Coyote's picture

You know what I want, the whole fucking system to fail. I want law and order to collapse, so I can go after those fucking bankers with a Bowie knife and cut their fucking bollocks off.

Dan Conway's picture

Correction:  you want law and order to be enforced.  Law and order has already has collapsed for criminals (both big and small). 

Wile-E-Coyote's picture

Yeah I have two drones circling my house, fuck em.

IndicaTive's picture

We're changing 401k companies. 2-3 week blackout period begins Monday. This should be interesting.

Go Tribe's picture

Blackout? You mean you won't be able to see your digital assets for two weeks?


IndicaTive's picture

I'll be able to see them for a few days. No changes allowed though.

tallen's picture

Stocks can go down????

wagthetails's picture

just relax, everything is fine. EU is just going to put Cyprus on DOUBLE SECRET PROBATION, which will, of course, contain the mess. 

Cunnial's picture

Um, guys, theres something wrong my ES chart... It's red? Anyone else having this problem?

BlueStreet's picture

What a beautiful color. 

SheepDog-One's picture

Try flippin it upside down.

swissaustrian's picture

Goldman Sachs' and Morgan Stanley's CDS exposure to Cypriot banks is?

toys for tits's picture

I was going to say that at least one bank will warn about exposure after trading tomorrow.  Bury it on Friday.

wagthetails's picture

Good question...and i'm sure the repsonse would be similar to that famous Enron call when Skilling called the analyst an ass.  I doubt either of those banks, in their response, would be 1/10th as well manored as Skilling

toys for tits's picture

What do you thing he's thinking?

'Man if we could have just held on five years'.

wagthetails's picture

I guess even criminal can't time the market perfectly. 

max2205's picture

Gs goes down because they want it to go down.  Moar cheap shares

thismarketisrigged's picture

i hope our banking system crashes so hard.


i want these bankers in jail immediatley


bunch of fucking thieves they are, living off all our money so they can fucking spend wrecklessley and make a fortune.

stormsailor's picture


Awakened Sheeple's picture

Good Idea. Coiling now. Don't get ahead of this thing, yet. I wouldn't be surprised to see us move back to the highs before rug gets pulled out.

Keeping my fingers crossed :p

SheepDog-One's picture

Be careful here, goal-seeking leverage monkeys! It will only take a 5% drop to wipe you all out! 

francis_sawyer's picture

Biddy Botter bought bum butter

But blended it in her big bank batter

'Blah' said she, bum butter's bitter & it's blended in my big bank batter

Biddy bought better butter

better than the bitter butter

now her big bank batter's better


Meanwhile ~ NEWSFLASH from the Middle East

"The sixth sick shiek's sixth sheep's sick"

francis_sawyer's picture

More junks... I'm assuming that Biddy Botter is Hebrew too... [2nd cousin to Spiderman]...

Mark123's picture

My, some reality seeps into the this the beginning of a big sell-off?


CNBC message - good entry point for people who have missed this great bull market.


Reality - Fed must allow odd day of sell-off to maintain illusion of a free capital market.  Shorts to get ass-raped tomorrow or next week by evil creatures with unlimited 0% overdraft accounts somewhere in the Cayman Islands.  Honest, hard-working middle class shrinks just a bit more.

SmallerGovNow2's picture

Was there no POMO today or what?

slaughterer's picture

Tomorrow = surprise rally.  EVERYTHING goes UP again!

Silverhog's picture

CNBC worked hard to down play Cyprus all day. "Come back to the Party" Who cares about a stupid Cat 5 Hurricane.