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Stunned Stocks Slide On Soaring Volume; Worst Swing Day In 5 Weeks
Today saw the largest high to low drop intraday (down over 2.3%) in the S&P 500 for five weeks as it fell back to the 'Tepper Top'. Volume was the 3rd highest of the year. As expected, high-beta muppets were hurt most; Trannies were the worst performer in the major equity indices (down 1.6% on the day and 2.5% from the Bernanke highs early on); homebuilders dropped 3.7% from their earlier highs, and Morgan Stanley slumped 4% from its earlier highs. VIX (up most in 5 weeks at 14.0%) and credit markets (biggest widening in 4 weeks and HYG dropped by its most in 6 months from its intraday highs) saw major weakness (extending the bearish divergence with stocks). The USD rallied back to unchanged on the week and commodities slipped lower (gold and silver end the day slightly higher on the week). What's so special about today? The S&P 500 dividend yield just equilibrated with the 10Y yield for the first time since April 2012... where would you rather 'reach for yield'...
Quite a day...
Small bounce into the close but not a pretty day...
Exuberance - the S&P 500 broke above its six-month trend channel today... final straw?
as the S&P 500 broke down to Tepper's Top
Bonds and Stocks yield the same...
'Most-Shorted' names recovered the week's squeeze and slumped back to in-line with the Russell...
The USD rallied back to unchanged on the week - which weighed on commodities in general...
Charts: Bloomberg and Capital Context
This seemed to sum it up nicely...
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Hand over the cash, or the economy gets it. I mean it.
These jew bankers and evangelical hedge fund managers want more than money.
They want our rights, our blood, and our soul.
HR VIOLATION!
vix pretty tame
denial.
Speaking of 'DeNILE'
~~~
I would have, under other circumstances, been hanging on every word about the Bernanke 'Taper' comment...
But as it turns out... I needed to:
- Roll up some hay
- Feed the chickens
- transplant about 2 dozen (each): pepper, tomato, zucchini, cucumber, cantaloupe, swiss chard, & eggplant
- cull the last of the spring spinach [& flash freeze it]
- harvest the bolted onions, arugula [seed pods]
- trim the apple & pear trees
- set some strawberry plants
- plant about 2 50 meter rows of corn
- repair a few hoses
- open up the swimming pool
~~~
I'm still not done yet... Waiting for the heat to 'TAPER' off...
Not very exciting... I admit... if your life depends on PAPER MONEY [Printed out of thin air, whereby the 'PRINTERS' rake interest for themselves]... It's only gonna be a REAL problem for me if one of the cheesepopes shows up & asks me for a fucking dill pickle...
10 year at 2.026%
Going up?
francis, hasn't anyone told you that we do not, i repeat do not create real items with real value and utility in this great new world economy? no exceptions.
i mean c'mon, its only fair, we can only move FORWOARD if we move FORWOARD together. get with the p(r)ogro(a)m!
@francis_sawyer: Sounds like you had a very productive day! Nothing like being in control of your food supply. It's very comforting.
http://meattrapper.com/
please don't tell me we gave up yesterday's gains!!!
I miss the old F Sawyer- if I wanted to hear lame shit about farming and mundane tasks I would read Hedgeless Horseman's posts.
RELEASE THE KRAKEN !!!!!! it's non denominational
It's time for the mortals to pay...the Kraken...
http://www.youtube.com/watch?v=gb2zIR2rvRQ
I don't need rights Shizzmoney. I'm born free, in a free country (perhaps not yours).
Hilarious.. isn't it. THE OLE FED TWO STEP. Anyhow, buying of gold in Asia has taken on a new life of its own since yesterday. Singapore 1 Kilo gold bars now scarce.
China demand drives Asian gold bar premiums to record highshttp://srsroccoreport.com/china-demand-drives-asian-gold-bar-premiums-to-record-highs/china-demand-drives-asian-gold-bar-premiums-to-record-highs/
Appreciate your work Steve.
I've been following this sector for over 15 years and I've never seen the level of misinformation, propaganda and general bullshit than what we have witnessed since the April smashdown. It's much worse than in 2008, yet the economic and financial conditions bullish for gold have never been better since the bull run started in 2001.
It is literally like the Twilight Zone...
Well, given that any efforts to stand for delivery get you Corzined, they've effectively killed the price-discovery machine.
My Christian side takes pity on the paper shorts who have no idea how fast the COMEX and GLD are going to get drained now that they are the only game in town for physical.
If John Paulson starts liquidating that would be a big deal too...
Yeah, whatever - get back to me when the market actually goes down for a solid week or so. Tired of the "ITS FALLING APART" posts, then the next day it rallies 200 points. Only been seeing the same song-and-dance for nearly three years - it gets old.
anybody want a peanut?
Said it yesterday: PANIC IN QE NEEDLE PARK
Release the POMO!
Again, illustration
If you own all houses in your neighborhood, what is more money goingto buy?
Mo' hookers, mo' blow. Need mo' POMO.
An Aston Martin for every driveway and coke and hookers to go in them....wait strike that no hookers are allowed in my Aston Martin fleet.
In my experience (I am probably older than you, sprout) hookers leave (or induce) what we like to call "smearies" on the upholstery of the Lamborghini, which, with its fine Absolutante fabric on the seats, tends to be a nightmare to remove before the Queen Bitch (wife) has to enter said vehicle for the ride on Montauk Highway for the weekend.
At least I can still get it up ya old fart...
I reserve the term "sprout" for people I feel affection for.
Trust me the hookers they buy would go well in your Aston Martin.
Why you leverage it in order to buy even more money.
3.75 billion in POMO tomorrow. A red day tomorrow would be a lot more significant.
That is correct. Today was a grandiose BTFD day.
http://nooooooooooooooo.com/
The robot's response to today's action:
It's just a flesh wound.
http://youtu.be/zKhEw7nD9C4
i can't prove this but that hacked AP/twitter feed a couple weeks back that caused the market to dive 100 points in just a few minutes...namely "are the HFT's using twitter feeds off of sites like zero hedge but certainly proprietary sites in order to run trading trading strategies?" in other words step back from "YOUR words" for a minute and "take a look at the dialogue." what you see is basically the "animal spirits of the market at work." by look at what the commenters are saying you can..."divine" if you will...their trading strategies and thus create a series of probabilistic outcomes based on a small series of inputs ("a Fed Statement.") knowing how the PEOPLE will react therefore will give you an advantage "when the market opens" meaning they will be running around chasing the market...or the noise...while "you"...(heavily capitalized and killer banking corporation) simply are pulling money out of their pocket...not the least by simply doing nothing. (couch potato investing.) just some idle thoughts of course...
how is hpq up 13 percent after they missed terribly on revenue?
I, too, would like to know. I mean ... 13%? Isn't that, like, a lot?
both net revenue and net earnings continue to shrink less than expected. AND
" GAAP operating margin did shrink 1.4 points on the year to 5.8 percent, but non-GAAP margins shrank just 0.3 points to 8.6 percent." After tax operating margin avg. for the industry is ~13% and net is ~9%. Good job Meg.
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/margin.html
Computerworld - Hewlett-Packard (HP) CEO Meg Whitman said this week that the company has reached the halfway point in its restructuring, with 15,000 employees left to cut to meet its layoff target.
HP last May announced plans to reduce its workforce by some 27,000 people out of a staff of 350,000. The company is using layoffs and early retirement incentives to reach its goal by the end of next year.
Great job Meg! You're a genius.
Fuck off.
Because Meg is handing out blow jobs to the analysts after the cc.
Mr. Market is like a heroin addict who finds out his supplier might be sentenced to a long stretch in the can. Panic now....will find a pomo pusher to relieve the shakes.
Naw, Mr. Market is long dead. Any appearances of life are due to its induced zombie state.
GAAAAAAIIIINS!!!
Mr. Corrupt Market is the son of Mr. Efficient Market ... who died March 2009 as I recall. Was ill a long time.
Please, long weekend coming up, and we all know that you can't consider it a profit until you sell.
So what is the trade for Thursday?
posted
Optimistic -- Firehouse
1: https://www.youtube.com/results?search_query=radiohead+optimistic
2: https://www.youtube.com/results?search_query=STEPHAN+MOLYNEUX
1: [Radiohead -- "Optimistic" ]
2: [SM]
Yaayy...Right on schedule..
Spin Doctors: Spin away...
Tnx Mr. Mkt..
BRRRING BAAACK DAAVE!
OFF da LOWS! yipeeeeee!
Green tomorrow.
these markets are truly fucked up ( not that we dont know that by now)
so basically the fed said if economic data shows improvement ( which it wont) they will taper off.
so what the fuck do i as a guy who wants this market to fucking crash to 0 hope for tomorrow?
initial jobless claims upwards would usually be bad in a normal market, but in this market, it can be the thing that wipes away todays losse.
however, a good claims number can possibly push us closer towards a taper.
so what do we want tomorrow, high claims number or low claims? even a low claims number would not mean a sell off, because the market can just say that qe is working ( which clearly the only thing it works at is creating massive asset bubbles)
Wait....'till....tomorrow. Today...meant...nothing.
The S&P 500 dividend yield just equilibrated with the 10Y yield for the first time since April 2012.
It's amazing to me that investors would settle for anything less from the stock market for even one second. But that's the ultimate goal and essential outcome of the Fed's intervention, isn't it? Once everyone accepts that yields on anything and everything can and should be zero, then prices can go anywhere.
The funniest line, Maria referring today as 'panic' selling.
DJIA down .6% = PANIC SELLING
hahahahahaha
That woman is frikking retarded. How pathetic are things where less than a percent drop equals panic selling?
A few more "panic" selling days like today and we will be back to levels not seen since early last week.
I'm surprised she didn't say, "Only real roughneck men with rock hard cocks and fat juicy balls know how to play this wild bucking mare of a market, oh, my tits for that kind of man, like you, on the couch!"
SPX down 39 points to the low 1648 minus 2.3% from today's 1687 high may not be typical panic selling, but when a drop that big is visible on a 2 year chart, showing an 'outside' key reversal, it's worse than panic selling - it's a market top, for months, and Mr. Market may shortly, and at last, remind Maria and the corporate press morons what real panic selling looks like.
We'll see.
O wait what is that? could it be reality kicking in?
I guess it is possible to have a down day. Who knew?
One possibility is that the usual suspects got an early release of the jobs data. The FOMC statement was a good cover to unload their positions. Of course, front-running with Fed data is a highly unusual event, isn't it?
don't fall for these shakouts in precious metals. They think of new ways to shake out weak hands and today when people were getting on gold train they took it down thinking people would get more frustrated. Still think a nice run up coming to mid 1400s and I cannot see price getting below 1k in gold and 18 in silver.
Probably a bad idea to go short today. Didn't see anybody buying insurance via the VIX so this downturn seems like a shakedown before we go tulip/mississipi bubble euphoric before the grand collapse. Tesla Motors was only down 40 basis points or 0.40% so no big scare in that bubble of a name.
It's really incredible that people like Bernanke, Dudley, Yellen Bullard, Evans, etc can get reach the levels they have achieved in our society. Ive been watching them closely over the past few years. I originally thought that there may be some conspiracy by global elites and that the FED was there instrument. Now I'm 99.9% sure that's NOT the case. What I've come to realize is the system breeds these incompetent 'educrats' that are born out of the the IVY league system. They are all taught the same nonsense and follow the same line of thinking, totally disconected from every day people and main street reality.
The FED is in a corner now and they don't know what to do. They thought that the QE would fix the eceonomy and we would have GDP >3.5% and inflation over 2% by now. Well that didn't happen, so now they blame congress (which deserves every bit of it) and make believe that things are getting better. They see bubbles forming, they will be running out of bonds to buy and I believe there is pressure coming Int'l from Japan, China, EU and others pushing the FED to stop driving down the dollar as it's starting to wane on their economies. Maybe Japan's kamakaze monetary policy is a reaction to our never ending QE, they simply just couldn't take it anymore.
Ben looked nervous today and so did Dudley, they need to get out but are terrified of the market mayhem that will follow. If they don't start focusing their messages they will soon lose credibility and that's really the when the shit will hit the fan.
Agree...except for a word in the phrase ' will soon lose credibility'
"The FED is in a corner now and they don't know what to do. They thought that the QE would fix the eceonomy"
QE was never intended to fix the economy - QE was designed to pump up the stock market so that corporate insiders could cash out their shares before the final credit contraction/collapse
http://3.bp.blogspot.com/-tYis8iqYju4/UZulFIIS8zI/AAAAAAAAl8U/B3DdjQ5PgZ...
I think you are onto it, bubblemania. These guys aren't full of evil genius, they're just not very smart at running a real economy as opposed to writing an essay about an imaginary one.
What's funny is that everyone has been screaming for Bernookie to stop the QE, and now that he's talking about it, no one is happy with that either.
Doesn't matter, the idea that FED runs the show is smoke and mirrors. The FED is reactionary, not trend setting.
Watch the long end of the bond market.
American Exceptionalism at it's finest. Manifest Destiny Bitchez!!!
Did anyone notice that it is an OUTSIDE REVERSAL day for the S&P 500. Based on that a trend reversal should have started today.
BTW, Gold (GLD actually) had an outside reversal on Monday. Should be trend reversals for both asset classes....just not in the same direction.
YOU HEARD IT HEAR BITCHES!
Five weeks?
O. M. G.
U. S. equities appear to be reaching a buying climax reminiscent of 1987. The price action since 11/15/12 has been overlaid against that infamous blow-off top here:
http://stockmarketadvantage.com/alarming-chart-of-the-stock-markets-of-1...
Watching Kudlow's show right now. everyone is desperately reassurring everyone else that that the FED won't start "tapering" on buying MBS and that BEN will continue the $85 billion per month stimulus. they saying he couldn't possibly stop or slow down with the economy in the shape its in.
Nothing can be predicted, simple math proves this, please all, go read the Wolfram " a new kind of science book". He is right and his hypothesis are being used to run the algos. Algo traders are hiring physicists and NOT economists to create the algos. But they all know that even with the fastest computers money can buy they can only predict the next few ticks. Any prediction that goes further than that is worthless. Please also read the nobel price winning book of Kahneman about the theory of perspectives.
Until next time,
Engineer
S&P500 hourly finally breaks with trend - astonishingly the bull channel remains intact.
http://bullandbearmash.com/chart/sp500-hourly-breaks-channel-support-clo...
Need to see a close below channel support - on a daily basis is ideal.
<a href="http://www.flickr.com/photos/inestakesphotos/6985559497/" title="It doesn't matter how big your house is rather how big is your heart by *December Sun, on Flickr"><img src="http://farm8.staticflickr.com/7199/6985559497_185f8bdcab_m.jpg" width="240" height="167" alt="It doesn't matter how big your house is rather how big is your heart"></a>