Turmoiling Market Plummets By 0.17% On POMO-Free Day

Tyler Durden's picture

Treasuries underperformed but only modestly (ending the day 2-3bps higher in yield) but worth noting that the 10Y and 30Y and 29-30bps higher in yield post NFP. The S&P 500 made new all-time intraday highs (after ramping aggressively from the European close) but shorts seemed to know something and were heavy sellers from that point (with the 'most shorted' names actually closing down on the day). The Dow closed down 0.17% as there was no POMO to save us (despite a decent 330 ramp effort that dragged SPX into the green - just). It is elsewhere that cracks are appearing. VIX remains relatively bid to equity exuberance (as hedges remain) and the underperformance of credit is rather dramatic (typical underperformance has been reversed rapidly with in 2-3 days this year - not this time). A modestly stronger USD on the day (led by AUD weakness - not helping the carry traders) was not a factor for commodities where gold, silver, and oil (QE-sensitive) dropped 1% on the day. But then again, why worry, tomorrow is Turnaround Tuesday after all...


SPX made new all-time highs on the back of a perfect post-EU Close squeeze ramp of the shorts but as the afternoon began, shorts piled back in...


but credit has been underwhelmed for a few days now...


Gold, silver, and oil all stayed together in a QE-off manner today...


as Healthcare was bid once again and QE-sensitive Materials and Industrials faded (as did Utes on rate weakness)...


But Treasury weakness was clearly not perceived as growth-driven with the S&P ignoring it as a driver today...


and FX Carry doesn't seem to playing along with equity happiness...


Charts: Bloomberg and Capital Context

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whatsinaname's picture

tomorrow is Tuesday ?

buy if you want to raise your batting average...

MillionDollarBonus_'s picture

The key is to not get carried away with these returns. Over the long term, it pays to diversify into a range of bonds and stock indices. Then again, I would advise most people to give their money to a professional money manager who understands these things better than I do.  

LawsofPhysics's picture

Successfully managing ones own wealth is bad for the eCONomy as it puts useless paper-pushers out of fucking work.  Cry me a fucking river, maybe if the compensation in other professions of real value was a bit higher.  This is one, of many, structural problems that still remains to be fixed.

IndicaTive's picture

You, sir, are on a roll today.

GernB's picture

Let me know when you find one money manager who "understands these things" well enough to predict his own returns with any accuracy over any length of time.

The Swedish Chef's picture

I wish someone would carry you away to never return. Over the long term, we would all benefit if you went and fucked yourself. 

q99x2's picture

Did you see it? I saw it. It was a dip. Did you get a chance to buy it?

LawsofPhysics's picture

bought the fuck out of some treasuries.  Hell, the paper wasn't even earning a percent interest, so why not.  We all not Yields cannot go far above 2% on the ten-year.  Bought a better dip than Gross anyway.  

McMolotov's picture

Just BTFD. You'll feel better.

(BTFD = begin to fucking drink)

The Swedish Chef's picture



Bought the tonic, forgot to mix myself a gin&tonic...*racing to the kitchen*

The Swedish Chef's picture


Went to the kitchen, ate a slice of serrano ham and a hamburger left over from dinner and went back to the computer. There I saw the reason for going to the kitchen in the first place.... *slowly get up and goes to the kitchen*

SheepDog-One's picture

Drink every time Bernank hits the 'buy all' button....totaly hammered before 5 minutes into the game.

Catch-22's picture

Sorry O/T


Can someone explain to me…




Did they post this to distance themselves from extreme comments that could threaten the existence of ZH… self-preservation kind of a thing?


Or is it the first step in joining the MSM?


RebelDevil's picture

It was probably done because of the rediculous amount of anti-semitic comments that have appeared.
I am sure the Tylers know the line between censoring to fight discrimination, and censoring for other agendas.
MSM does the latter.

The Swedish Chef's picture

About fucking time. There is always Stormfront if they want to go on like some people have done in the last year or so. Or they could just pop down to the water cooler at alphabet soup agency they work at and throw some of it around. 


Regardless, good ridance. 


And now you can down vote, you inbred lowlifes. I´m expecting a record. 

baby_BLYTHE's picture

I've personally donated to ZH in the past based on their efforts to promote free speech in a world of distortions and lies especially present in both financial and political MSM. I now regret that decision and regard it as one of the worst uses of fiat in my lifetime. Given ZH track record of consistency, it is my hope they retract this tyrannical policy of censorship of speech just because it might not "agree" with a certain Tyler's personal ethos. This is BS guys. What the hell?

Catch-22's picture



Hold on… your contribution promoted the right cause/advocates at the right time… we all got something out of it.

I’m just trying to figure out if Tylers are still around (maybe being pressured) or have been replaced…

As much as I would miss this place… you know… nothing is forever; it was good while it lasted. 


slaughterer's picture

Today the consensus was : market will be in turmoil.  And we got: bull market in control.

Tomorrow the consensus is: turnaround turbo Tuesday with nice $3b POMO.  And we will get: turmoil.

They are turning the tables to keep you on your toes.

the not so mighty maximiza's picture

they are just making it up as they go now, the plan is toast

Son of Loki's picture

Any negative, even -0.01% is a HUGE miss considering their dumping billions into the market each week....huge....

ekm's picture

POMO has no more effect.

There's enough trillions in reserves already.

fonzannoon's picture

Actually POMO has had the perfect effect. It's just behavioral psychology. They have trained us all to be BTFD monkeys. Now that they consider us trained, and have the reserves you mentioned...they can let us do it.

ekm's picture


Who's got money left to do the heavy lifting?

fonzannoon's picture

Man that is a great question. I wonder ekm, I am a tiny fish in a gigantic pond, and I know a lot of tiny tiny fish who have money sitting around because we will not jump in here. But you give this market a 10% correction and somehow get a floor under it and the crowd who missed the run will come roaring in.

As a matter of fact that may be the perfect trap to set to actually get some retail back in and then really dump this thing on their heads.

Goldilocks's picture

She should have died hereafter;
There would have been a time for such a word.
Tomorrow, and tomorrow, and tomorrow,
Creeps in this petty pace from day to day,
To the last syllable of recorded time;
And all our yesterdays have lighted fools
The way to dusty death. Out, out, brief candle!
Life's but a walking shadow, a poor player
That struts and frets his hour upon the stage
And then is heard no more. It is a tale
Told by an idiot, full of sound and fury
Signifying nothing. — Macbeth (Act 5, Scene 5, lines 17-28)

Patrick Stewart as Macbeth ("Tomorrow, and Tomorrow, and Tomorrow")
http://www.youtube.com/watch?v=HZnaXDRwu84 (2:06)

uncle reggie's picture

Congrats ZH, "Turmoiling market plummets 0.17%....." The use of "turmoiling" and "plummets" in your headline makes you today's champ in the "wow, that's some creative bullshit" contest. Good work!

Village Smithy's picture

Charlie Brown to Violet in A Charlie Brown Christmas: "Don't you know sarcasm when you hear it?"

Gypsyducks's picture


Traianus Augustus's picture

There is no such thing as a POMO-FREE DAY!!!  There is the ANNOUNCED POMO and the UNANNOUNCED POMO.  Anyone who thinks differently hasn't been paying attention.

JJ McApe's picture

dont worry uncle ben will do something soon :)

broken markets need more stimulus

The Swedish Chef's picture

0,17% is to plummet? English is not my first language so let me check... According to Merriam-Webster "plummet" is "to drop sharply and abruptly". I went back to my broker and checked US indices. All closed green exept DIJA and there was nothing in the charts that could be described as "to drop sharply and abruptly"


Please, we understand you want to make a point about POMO days but the title is just plain silly.

Technical Difficulty's picture

I think (hope) there as just a missing /sarc tag. It can't be a serious headline. 

W T F II's picture

This thing IS gonna crack this week. POMO-on days tomorrow, and especially Friday, which sell-off hard WILL get everyone's attention...!!

I believe the Fed WANTS it that way, since the message was not heeded.

electricgorilla's picture

you should buy this market here. POMO tmrw. Plus, student loans are now tied to the 10-year us treasury which is a great signal that QE will end no time soon. If they were to end QE soon, the 10-year would rise dramatically causing defaults on student loan debt right away.

Freedumb's picture

Really got caught off guard by the incredible drop on the markets today amid so many "New Normal" bullish indicators -- Dancing with the Stars is on tonight, and both Justin Timberlake and Jessica Biel were at the White House today.

Dr_Lucid's picture

Seriously hard to predict the .17% near "crash" today.  What a disaster. Lots of blood on the streets for sure.

Most of the time people in my office take lunch, but no sir not today.  Most everyone was on the phone with Fidelity trying to switch out the equity index ETF's from our 401(k) in favor of cash.  For the real risky players nearing retirement who were in bonds, they shortened their duration as well.  One guy who scoops out the mashed potatoes on the lunch line was going on and on about convexity and he had quite the audience.

I sure hope Ben steps up to the plate tomorrow and gets us all out of this landslide.  I'd like to see a nice 200-350 point gain on the bounce so I can once again tell all my softball buddies BTFD.  Gosh I just this market.