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Stocks Slump Most In 6 Weeks; Bonds Best Close Of Year
Treasuries closed at their lowest yield of the year - around 1.81% - and the Dow ended down triple-digits as the S&P saw its biggest down day in six weeks. Volume was 25% above average. The rally's leaders were smashed - Homebuilders suffered the most on the day - now down 4% post Cyprus (along with Materials) but it is Financials that have been slayed post CCAR. The big TBTFs (MS and Citi worst) are down 10% from pre-Cyprus levels. The Dow remains magically green post-Cyprus but the rest of the major indices are down (with Trannies leading the drop). VIX popped back above 14% but stocks are catching down to it. JPY strengthened from early in the US day - giving back all the weakness that the BoJ jawboned overnight and commodities were sold across the board (even as the USD did not move greatly) suggesting more liquidation-like moves. A late-day VWAP-reversion attempt (using HYG and EURJPY) failed which suggests there is real selling-pressure (something we have not seen in recent declines).
A busy day for Stocks...
As the great rotation isn't...
as the 10Y Yield closed at its lowest of 2013...
with all S&P sectors but Utilities, Staples, and Healthcare red post-Cyprus (and they are fadinfg fast)..
as Homebuilder suffer their biggest 3-day decline in 10 months on heavy volume...
As Financials have been crushed since Cyprus...
and while the USD didn't move dramatically... (JPY overnight weakness was bought back in a hrry as stocks slipped)
Commodities slipped quite dramatically as US equities lost ground...
In general risk-assets (proxied by Capital Context's CONTEXT model below) and stocks were increasingly correlated as the decline progressed today...
Surely it's not this easy (again)?
Charts: Bloomberg and Capital Context
Bonus Chart: All the time Copper was rising with stocks we were endlessly told of its 'confirming' the strength of the global economy but now that it is retreating in ahurry, it is purely technical and simply an over-supply thing... hhmm...
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the homebuilders chart is ridiculous.
Ahhh....
Maybe the banksters can't sustain the Muppett Bull, so the Norks will make some big noise and take the blame.
Useful for scaring the sheep too.
And you mean to tell me there arn't any stalkers, or vultures, or even one venture crapoitalist smellin these fumes? I feel trapped in a room with 40 skunks and no where to go.
Whoever was buying up those weekly spys got raped today. Probably a big tbtf bank, cause it was way too big for a individual trader. http://tradingvix.blogspot.com/2013/04/puts-vs-calls-422013.html
i got a vision (passing peace pipe),
many, many white warriors coming to our valley...
other pipe smoker; shall we ready the ponies?
Cheif; no, they come to help.
last words...
The end is nigh-ish.
deja vu all over again...
If the threat of nuclear war isn't enough to keep this bubble inflating I'm afraid nothing is
Shitty looking charts, bitchez!
Really? Nuclear war is bullish for stocks? ... ....
Any particular sector?
Finance... JP Morgan & G Sachs.
As their analysts will tell you: BUY THE MUSHROOM CLOUD.
Not only will it be cathartic, but the rebuilding will inject trillions into a downsized, streamlined global economy.
Nucular technology!
Anything war related.
Carnival cruises
They used the 'nuclear' option to pass Obama(don't)care. Bullish stupidity.
Reality-ON bitchez!!
Is Spanky Bernanke on vacation? Didn't see a ramp this afternoon.
Where the fuck is KEVIN?!!
OFF THE LOWS!! Never been a better time to buy sum stawks.
Off topic, but something you've all been waiting for - Angela Merkel in a bathing suit:
http://www.mopo.de/mauritius/servlet/page/search/mopo/suche/5066546,5066...
on vaction on an island off Naples
thank you for sharing
now we just need one of janet napolitano and my day will be complete
its hard for me to keep my pants zipped up...
the ppt was playing a game of golf everything will be back to the new normal tomarrow!
ive gotten my hopes up way too many times in believing that one decent red day would be the beginning of a long downward spiral, only to see the following day time after time the days losses erased and then some.
to confirm this, i need to see at least another 2-3 days of sharp selling, and not some bullshit green day tomorrow.
i will pray this is it, but i have seen it too many times only to be let down.
Off topic, but something you've all been waiting for - Angela Merkel in a bathing suit:
http://www.mopo.de/mauritius/servlet/page/search/mopo/suche/5066546,5066...
on vaction on an island off Naples
Sorry - you need to run a search for "Merkel" to view photos.
Are we foooooked ?
*nvrmnd*
Heart of the Beast
I was building the prototype solution for this problem at the Port of San Diego when the Stateys pounded me, because it would have meant massive government turnover, assuming I would be destroyed in the process like everyone else who dared to budge the status quo. Then I offered to solve the problem with technology at Navy Headquarters, in return for choosing the admiral to implement it. Virginia sent a slimeball to “negotiate” with me. When the Greenspan Fed asked me to help solve the problem, I told them that they had to dismantle Family Law banking regulations to reboot effective capital formation from the bottom up. They didn't like that answer. And I didn't begin this round at Brad Delong's website by accident. They have since ballooned the price tag from $2T to $16T, on its way to $30T, building the gravitational counterweight, resistance, for me.
I'm not in San Francisco by accident either. Everyday, I am pounding a stake in the heart of the beast. The crackers have got the feminazis putting on a $8 orgy event here wherein black children watch niggers piss in their mothers' mouths. My job is easy. I push the frontier of technology forward and the frontier of currency backward, and there is nothing these a-holes can do about it because they do not understand the inherent nature of the quantum fulcrum. They are racing around the second hand gear, over and over again, trying to get to the future, while I am translating the cam shaft. As Bernanke provided, anyone can debase a currency. It doesn't take a rocket scientist to turn off the ignition, leave the lights on, and push the car down a slope to a cliff edge with the middle class in the back seat, calling each other on their smartphones. How are those 90cent/hr, $400 retail, $25 street price smartphones working out for everyone anyway? Have you checked container ship economics lately?
Labor works for its children. Gold doesn't work. But keep proving me wrong, and have a nice day while you're at it. There are centuries of managing currency on one side of my family and centuries of managing technology on the other. Build as many schools, graduate as many yuppies, issue as many proclamations, and grant as many certifications as you like. You cannot buy generational experience. It's in the DNA.
^ its like a Hunter S thompson narrative without the drugs
Interesting rant. I am listening.
What was the prototype doing?
What do you mean by "currency frontier backward"?
Why is Family Law banking regulation an obstacle to effective capital formation?
"Labor works for its children". Its? Labor's children? The beast's children? I do not understand. Please elaborate.
"It doesn't take a rocket scientist to turn off the ignition, leave the lights on, and push..." Are you saying that he has given up, and is letting the deflationary collapse run its course now?
yes, i feel a change in the Force
or is that Farce?
Interesting that the Small Crap stocks (aka Russell 2K) came all the way back to fill the March 5 gap on the daily charts, but not the other indices. Something tells me it won't drop below the Feb lows, given how jazzed Russell algos have been this year, but if by chance it does,well then sweet Jeezus it's lookout below (!) A dent in the Small Crap stocks would mess with everyone's recovery story, wouldn't it? (Yeah, that's precisely why they won't let it happen without a bigger fight ...)
Tomorrow morning somebody is going to talk about a dream they had where Ben Bernanke doubled the size of POMO purchases and we will be off to the races once again.
Ben's gotta do something to commemorate his approaching retirement.
Why not go out with a bang -- $300 billion a month in QE, blow the S&P to 2000?
Rich. We're rich!
Unitl there is an alternative to the central banking cartel fiat, then nothing matters. Wake me up when some country like China comes out with a trading currency that is backed by something real....
With unlimited, no cost cash how can there ever be a stock market collapse?
WHO FARTED? Maria or O'niell...listen at around 4:50...got to hand it to them, they kept a straight face
http://video.cnbc.com/gallery/?play=1&video=3000158846
time correction...@ 4:48 on the nose
Braindead idiot comment of the day:
Fed’s Bullard: QE3 likely to be an effective program
Peter Fell | Apr. 3, 2013 20:58 GMT | Major CurrenciesI absolutely think equities will do it's usual spring into summer sell-off. And the reason is simple. Can you imagine having a massive position on in the low volume summer session and some unforseen negative event happens? You'd never be able to get out of it. And the negative event this summer isn't even unforeseen. It's in July. Sure, everyone and their grandma knows we will raise the debt ceiling, but that doesn't mean it won't be used to whip the market around. The Dow futures tend to pierce to a new high and run the stops before they reverse. If that sets up again it will be the third time in the last few months to form a perfect technical topping pattern, so I'm sure a lot of traders will buy the "breakout" thinking we will keep going up, but I suspect next time the big money will sell into it to lighten up their positions. It's the perfect trap. We'll see. Maybe the Bernanke bucks will win again, but I suspect the summer positioning play will take this one, and there's no need to guess as it will be obvious if it happens. It's all about that pierce to new highs that finally gets sold into all day.
As for silver, we made it into the $26's like I thought. I didn't trade it perfectly by any means, but good enough. I'm considering going long for a quick bounce, but I'm thinking it will play its usual tune of sideways to up for a bit then one last move down to run the stops, then we might get the prolonged rally to the top of the channel that I was hoping would happen last time. We're too oversold to do much damage below $26 now, but I fully expect once we complete another up move to unwind a bit, the next time we press down to $26 could be the capitulation move that takes us to $19-ish, which might just be the bottom forever. I will only change my mind if it definitively breaks the upper channel and holds for days. Otherwise, the bear market continues.
Bigger picture, I'm thinking the dollar makes it to $89-$92, the Euro makes it down to $1.12-1.15, silver down to $19, gold down to whatever corresponds with that (maybe $1200?). No idea how low equities will go, maybe the weekly uptrend line in the low 13,000s...