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Dow Dumps 270 Points Intraday To Biggest 2-Week Drop In Six Months

Tyler Durden's picture




 

The Dow Jones Utility Index is down 35% in the last two weeks - the largest drop since March 2009. Across the board, what looked like being a normal BTFD day around midday, equity markets were monkey-hammered lowered with the S&P 500's worst 2-week run in 6 months. The Dow dropped over 270 points intraday (and 400 from its Monday highs) - attributed to a large month-end sell-side imbalance. Equity markets appear to be playing catch-down to credit's warning messages (though stocks are only down 1% from Friday's close, it feels like more as they are -2.5% to 3% from the highs). JPY strengthened into the equity sell-off and commodities all legged lower (with WTI -2.5% on the week and Gold unch) even as the USD weakened 0.5% on the week. The reality of the one-way trade was very evident. Treasuries came well off their worst levels of the day but remain 11-14bps higher in yield on the week. VIX, which had also been sending its warning messages, smashed 1.75 vols higher to 16.25%. It seems a lot will be reflecting on the Dow/NKY convergence and the behavior in Japan this week as they note there was no bounce at all in today's closing crash.

Dow down over 400 points from its Monday highs...

 

Dow Utilities crushed!!!! -35% in 2 weeks...

 

and from Monday's highs, Trannies are worst...

 

and quite a week for the sectors (though financials closed green)...

 

Commodities slid too... though gold held unchanged...

 

Equities catching down to credit...

 

So what moved first?

 

 

Charts:Bloomberg and Capital Context

 

This seems appropriate...


 

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Fri, 05/31/2013 - 16:15 | 3614976 lizzy36
lizzy36's picture

Where the fuck is the DEER????

Fri, 05/31/2013 - 16:20 | 3615004 mayhem_korner
mayhem_korner's picture

 

 

Inflation.  Deer sightings now require 500 pt drop.  Today may be a possum day, tho...

Fri, 05/31/2013 - 16:28 | 3615040 walküre
walküre's picture

First dump is always the best dump .. to exit

Dump now or be forever dumped out .. missed the exit

Fri, 05/31/2013 - 17:55 | 3615309 CheapBastard
CheapBastard's picture

Rumor has it they saw Big Foot running back up into the Hills.....wonder what the big feller knows?

 

..er, maybe it's BF instinct.....6th sense to to speak.

Sat, 06/01/2013 - 07:23 | 3616273 GetZeeGold
GetZeeGold's picture

 

 

Where the fuck is the DEER????

 

We're hiding....you gotta have a death wish to go prancing on the interstate in this market environment.

We're sending a stand-in.....fire away!

http://www.youtube.com/watch?v=o-50GjySwew&feature=player_embedded

 

Fri, 05/31/2013 - 18:31 | 3615390 max2205
max2205's picture

Xlu is only down 10%   r u sure....

Fri, 05/31/2013 - 16:16 | 3614979 csmith
csmith's picture

The Dow Jones Utility Index is down 35% in the last two weeks...

 

Not quite there, Mr. Math Genius. More like 6%.

Fri, 05/31/2013 - 17:01 | 3615159 NidStyles
NidStyles's picture

Except he was speaking about the move for the past two weeks. Great job reading the chart idiot.

Fri, 05/31/2013 - 17:31 | 3615234 chunkylover42
chunkylover42's picture

right - the DJ Utilities Index which is at 482 today was at 517 two weeks ago on May 17th (how cool, 517 on 5/17).  That is a change of...  6.8%.  So who's the idiot again?

I have no idea what the bottom bar chart in the graphic is telling me, but the math is definitely not saying that the Utilities Index is down 35% in two weeks.  Whoever wrote this meant something else, but the first sentence is extremely misleading, if not outright wrong.  My guess is he means 35 points

Fri, 05/31/2013 - 22:55 | 3616006 I should be working
I should be working's picture

I was going to make the same point.

However, I will also say: crowded trades, ending badly, again.  Don't buy anything that pays an effing dividend right now...

Fri, 05/31/2013 - 16:16 | 3614980 Cdad
Cdad's picture

And just now...after the close...the chattering idiots on The BlowHorn [CNBC] commence chatter on Fed tapering coming.  Funny how that works...in their small minds.

Fri, 05/31/2013 - 16:19 | 3614994 Cdad
Cdad's picture

Ooooh...an octobox of chattering idiots, even.  MOAR chatter about "the market feels" and "I think" and "buy on the dip mentality."

Fri, 05/31/2013 - 16:21 | 3615007 mayhem_korner
mayhem_korner's picture

 

 

+8 for "octobox"

Fri, 05/31/2013 - 16:33 | 3615065 The Shootist
The Shootist's picture

Who will "buy on the dip mentality" on monday? -Maria B

Fri, 05/31/2013 - 16:36 | 3615076 walküre
walküre's picture

I heard Maria B. and Cramer are making out .... like bandits.

Fri, 05/31/2013 - 16:45 | 3615109 mayhem_korner
mayhem_korner's picture

 

 

That's cuz every time Cramer squeals "BTFD" she thinks he's soliciting her.

Fri, 05/31/2013 - 16:23 | 3615009 Edward Fiatski
Edward Fiatski's picture

Told you the ramp from mid 1500s post-NFP was to get the muppets in. :-)  Well I guess, oops!

We even argued whether or not it would kiss 1700 before reversal, or would it be in the 1650-1670 range; Ben really likes the number 1666, though.

The fat cats took their milk and went, bringing the huge unrotation volume with them.

Enjoy the weekend!

Fri, 05/31/2013 - 16:31 | 3615059 Cdad
Cdad's picture

Average Joe redeemed on this sad stock market's ass once again...huge mutual fund and ETF outflows.

The new Smart Money...Average Joe

Fri, 05/31/2013 - 16:32 | 3615061 goBackToSleep
goBackToSleep's picture

Just listen to the lyrics. You can thank me later........ I've been saving this one for a while.

 

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

Fri, 05/31/2013 - 16:36 | 3615081 goBackToSleep
goBackToSleep's picture

She is the dow and He is Uncle Benny, classic, yep i'm twisted......

http://www.youtube.com/watch?v=jDSLR9PVWxg

Fri, 05/31/2013 - 16:16 | 3614983 the not so migh...
the not so mighty maximiza's picture

Double that POMO you HOMO

 

Fri, 05/31/2013 - 18:34 | 3615398 max2205
max2205's picture

Oh wait... the day has come when POMO is used to short stocks.....Ben better turn off the faucet before it gets out of control. ...oh wait....

Fri, 05/31/2013 - 16:17 | 3614986 JJ McApe
JJ McApe's picture

dont worry. monday flat day. tuesday new all time highs :D

Fri, 05/31/2013 - 17:05 | 3615179 SamAdams
SamAdams's picture

I think you are right.  EOM dump, POMO no taper.   Bad news is good news.  Breakout coming.

http://www.newyorkfed.org/markets/tot_operation_schedule.html

Fri, 05/31/2013 - 16:19 | 3614993 ebworthen
ebworthen's picture

That dump in the last hour was a doozy.

I'd bet Monday the dump continues, until it is bought at 3:59:59 for the Tuesday POMO ramp.

Fri, 05/31/2013 - 23:01 | 3616012 I should be working
I should be working's picture

So dump from 1645 to the close at 1630.  Then on Monday ramp to 1650 on no news at the open (we need green futures to get the muppets back in right?) then sell to 1600 at 3:59:59 when we spike to 1700 a 3:59:59.9 and crash back to 666 at 4.  That last algo is going to be sore in the morning!@!

Fri, 05/31/2013 - 16:19 | 3614995 mayhem_korner
mayhem_korner's picture

 

 

the batteries in the 3:30 ramp remote control must have been put in backwards

Fri, 05/31/2013 - 16:20 | 3614998 Ribeye
Ribeye's picture

"And you think this gives you power over me?"

Fri, 05/31/2013 - 16:20 | 3614999 Chappy
Chappy's picture

This was my fault.  Moved a good chunk into stocks last night in anticipation of end of month pomo rampo.  Got wrecked, oops!

Fri, 05/31/2013 - 16:20 | 3615002 LawsofPhysics
LawsofPhysics's picture

Treasury yields must come down, there's a whole lot of deficit spending that needs to be funded on the cheap.  "winning"

Fri, 05/31/2013 - 16:30 | 3615050 walküre
walküre's picture

ding ding

Fed's last tool in the box is pegging the 10 yr rate at 2% for as long as required and until morale improves.

Fri, 05/31/2013 - 16:34 | 3615067 mayhem_korner
mayhem_korner's picture

 

 

...and Ben's last "tool" is the one he gets to take his place as he retires to POMO Island...

Fri, 05/31/2013 - 21:22 | 3615832 Abi Normal
Abi Normal's picture

The beatings will continue until morale improves...

Fri, 05/31/2013 - 18:03 | 3615334 CrashisOptimistic
CrashisOptimistic's picture

Pretty much that.

And sports fans, don't buy the meme of "the shrinking deficit means there will be fewer bonds for Bernanke to buy".

The deficit will log in about 800B this year, post Sequester impact on Q2 revs.  And Q3.  The tax increase in January is the only source of new revs.  The Fannie/Freddie silliness is one time only.  It won't be there next FY.

With GDP grinding down, revs will fall.  $800B this year, and the extra $200B he will need to buy can come from pension fund or foreign holdings inventory.  They may be reluctant to sell, which means he'll have to bid up, which lowers the yield.

Then next year with the slowing GDP we'll be back to $1T deficit, even WITH the millionaire's tax put in on 1 Jan of this year.

Fri, 05/31/2013 - 16:21 | 3615006 Obchelli
Obchelli's picture

Yes but financials didn't drop that much...

Question is why? They were outperforming market all may 2:1 and more every day on upside and downperforming on downside....

 

Now new mantra is High interest rates are good for financials...

 

Go figure all is good

Fri, 05/31/2013 - 16:30 | 3615051 ebworthen
ebworthen's picture

If there is another crash the banks will be saved at all costs.

They will be bailed out again, and continue to get FED backdoor money and QE to prop them up.

The markets and the governments ARE the banks.

Fri, 05/31/2013 - 23:00 | 3616016 I should be working
I should be working's picture

Of course higher interest rates are good for financials.  Have you looked at the ROIC at any major bank lately?  Effing disaster...

Fri, 05/31/2013 - 16:22 | 3615010 AGoldhamster
AGoldhamster's picture

Down 35% ... hmm ... seems Tyler got just a bit ahead of himself ... lol

Fri, 05/31/2013 - 16:26 | 3615024 mayhem_korner
mayhem_korner's picture

 

 

Clairvoyance is an art best appreciated in hindsight.  ;)

Fri, 05/31/2013 - 16:27 | 3615028 walküre
walküre's picture

Tyler mistakenly reported from his time machine which was hovering in September 2013. Tomorrow we'll get the news from April 2014 when DOW is back to 4000 points.

Fri, 05/31/2013 - 17:04 | 3615169 NidStyles
NidStyles's picture

He calculated from the last upward trend. Anything before the current or most recent trend does not matter.

 

Why is this so hard to figure out for you guys?

Fri, 05/31/2013 - 16:23 | 3615016 bnbdnb
bnbdnb's picture

35 pts Tyler.

Fri, 05/31/2013 - 16:26 | 3615021 Headbanger
Headbanger's picture

WHOA! !  I only took a walk to the mailbox and got snagged by the nosey neighbor for a while

and came back in to see this late day implosion!  

WTFO!?

Fri, 05/31/2013 - 16:26 | 3615022 Bay of Pigs
Bay of Pigs's picture

Wake me up when this happens again.

http://www.youtube.com/watch?v=E1xqSZy9_4I

Fri, 05/31/2013 - 16:30 | 3615052 mayhem_korner
mayhem_korner's picture

 

 

Ahhh...'twas a thing of beauty. 

Fri, 05/31/2013 - 16:40 | 3615095 Muppet
Muppet's picture

That is an amazing recording

Fri, 05/31/2013 - 16:47 | 3615117 mayhem_korner
mayhem_korner's picture

 

 

Nice avatar, Waldorf.

Fri, 05/31/2013 - 17:02 | 3615162 Frank N. Beans
Frank N. Beans's picture

sounds like the Kentucky derby

Fri, 05/31/2013 - 16:27 | 3615030 SheepDog-One
SheepDog-One's picture

SWEET!

FUk U BERNANK!

Fri, 05/31/2013 - 16:28 | 3615033 Shizzmoney
Shizzmoney's picture

Guys, nothing to see here.

DJIA gets to 16K next week.

The crash won't happen.....yet.  The fun starts in August, and will (slowly) escalate until 2015, when the thing falls with the acceleration of a turd into the toliet bowl.

Fri, 05/31/2013 - 16:28 | 3615034 Hongcha
Hongcha's picture

This rally is broken.  169 SPY will stand as high of the year.  It has been a long, hard slog comrades.

Fri, 05/31/2013 - 16:28 | 3615038 Freedumb
Freedumb's picture

This time it wasn't the weather, it was allergies that did it.

Fri, 05/31/2013 - 16:29 | 3615042 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Off topic and maybe filed under humor I wonder if the David Carradine method of auto erotic asphyxiation gone wrong happens more often than we know and if it is common form of accidental death for wall street types.

http://www.dailymail.co.uk/news/article-2332657/Former-NASA-official-dea...

Former NASA official and member of Apollo navigation team is found dead in Thailand with a rope tied around his neck and crotch

 

It happened in Thailand enough said.......

Fri, 05/31/2013 - 16:29 | 3615043 bonzo112358
bonzo112358's picture

I'm sure everyone thought (which is probably why this happened) that todays POMO + EOM would be up 200 points and not down.  Maybe there are people wising up and starting to realize that what is happening in Japan can actually happen here.

Fri, 05/31/2013 - 16:29 | 3615044 malikai
malikai's picture

Nice +2 dSdev closure on the S&P.

http://blog.quantsig.net/2013/05/31/sp-9/

Fri, 05/31/2013 - 16:30 | 3615047 monopoly
monopoly's picture

I think next week will be fun. Feel real good holding gold, silver and miners. Have no interest in the idiots Pomo days. 

Fri, 05/31/2013 - 16:30 | 3615048 WTFUD
WTFUD's picture

There are 2 kinds of people in these markets ( rackets ), Crooks or Clowns!

Long funeral directors & wood coffins

Fri, 05/31/2013 - 16:30 | 3615049 ghostfaceinvestah
ghostfaceinvestah's picture

The Fed is losing control of the yield curve, if they can't regain control, this is going to get ugly.

Fri, 05/31/2013 - 16:33 | 3615066 walküre
walküre's picture

Are you kidding? The Fed IS the yield curve. Who else has any power or control to fight the Fed other than the Fed (member banks)?

This is not 2008 where outside players had some influence on the price of US debt. The Fed owns it and is not selling. They're buying more of it on a daily basis to keep the show going.

The show can't afford higher rates and the Fed knows that too. This is ACT II in their script.

Fri, 05/31/2013 - 16:30 | 3615053 thismarketisrigged
thismarketisrigged's picture

id be lying if i said i didnt have a huge smile on my face towards days end watching the algos go red across my screen.

 

great day for us. the only thing that worries me is that there was a major rebalance, so im hoping that wasnt the reason for the majority of the selling and just some of it.

 

i dont know what to expect next week. i feel the market may be dead until next fridays jobs reports, that is unless of course something out of the blue happens and shocks the markets globally.

 

either way, solid day for us zerohedgers in that equities were down, but gold also was so thats a negative.

 

p.s, who just wants to punch stephanie link so hard when she talks? shes always buying the fucking dips, id deff fuck her, but what a dumb fucking bitch. all she says is bye bye bye, like her co partner cramer.

Fri, 05/31/2013 - 16:31 | 3615056 Awakened Sheeple
Awakened Sheeple's picture

BTFD. Vix is still coiling on the 6 month chart. We're going to retest the highs before the real crash. Watch :/

Fri, 05/31/2013 - 16:31 | 3615060 slaughterer
slaughterer's picture

Surprising day.   Not what I expected at all.

Fri, 05/31/2013 - 16:32 | 3615063 ghostfaceinvestah
ghostfaceinvestah's picture

Nice 13bps range in the 10 year yield today, that's a sign of a healthy market.

Fri, 05/31/2013 - 16:40 | 3615068 buzzsaw99
buzzsaw99's picture

"You get my son to call you Daddy, I fuck your wife, that's the deal."

Fri, 05/31/2013 - 16:36 | 3615070 Kirk2NCC1701
Kirk2NCC1701's picture

Now that's funny!  Almost as funny* on Friday Funnies of the "Then & Now" scenarios...

Scenario 1:  Jack goes duck hunting before school and then pulls into the school parking lot with his shotgun in his truck's gun rack.

1957 – Vice principal comes over, looks at Jack's shotgun, goes to his car and gets his shotgun to show Jack.

2012 – School goes into lockdown, FBI is called, Jack is hauled off to jail and never sees his truck or gun again. Counselors are called in for traumatized students and teachers.

 

* From the Casey Daily Dispatch, 5/31

Fri, 05/31/2013 - 16:35 | 3615071 OMG
OMG's picture

No worries Ben's kneepads that he wears while sucking globalist cock slippled as he was reaching for the print button, rumor is the knee pads now have velcro on them. All is well go long vaseline.

Fri, 05/31/2013 - 16:36 | 3615072 mutty
mutty's picture

heh. The  "Dividend stocks are low risk" crowd just got run over. Say goodbye to two years of dividend income. poof. bad idea. When interest rates go up, dividend stocks get crushed. Intermediate bonds are down 2%. dipstinking muppets.

Oh well, at least they weren't warned, and goldman got their commissions.

That said, zerohedge did mess up the number. -10% for the month of may. I don't see a 35% decline in there anywhere. No biggy. This is the FIRST time i've double checked and found an zh error. This kind of thing happens at CNBC,CNN, etc every few minutes. Justin Bieber was wearing a BLUE shirt, you MFers!

Dow Jones Utilities Average is down 10% in the last month.

https://www.google.com/finance?q=INDEXDJX:DJU

Fri, 05/31/2013 - 16:36 | 3615078 ekm
ekm's picture

Well, Testing for QE full halt. Good results.

 

Next step: A preplanned 1000 dow pts drop/day for 3 days in row.

Fri, 05/31/2013 - 16:43 | 3615103 walküre
walküre's picture

it's "tapering"

get with the lingo, man!

Fri, 05/31/2013 - 16:45 | 3615110 ekm
ekm's picture

Too late for 'tapering'.

 

Only full halt available.

 

Unwinding - unlikely. If the Fed let the bonds expire, that's effective unwinding

Fri, 05/31/2013 - 16:49 | 3615126 walküre
walküre's picture

"green shoots" resulting in a "recovery" where "buy the dip mentality" prevailed until "tapering" crushed the investor's spirits

there, full circle 360 degrees all self explanatory propaganda where all asses are covered and nobody gets to be blamed

lies, lies and more lies

if the Fed ... if the Fed stops buying bonds, the US goes BANKROTT

the Fed sets the rates and if the Fed charges more for US paper, the Fed will get burnt down along with the US government

end of story

Fri, 05/31/2013 - 19:42 | 3615590 Its Only Rock N Roll
Its Only Rock N Roll's picture

Full halt here and in Japan.  Markets are going to force their hands or you will get a big, quick ugly unwind in risk assets.  These central banks are arrogant enough to push it too far and the markets revolt on them. 

Fri, 05/31/2013 - 16:38 | 3615088 Satan
Satan's picture

" Please, do not worry."

Fri, 05/31/2013 - 17:11 | 3615191 Edward Fiatski
Edward Fiatski's picture

I smired, good one.

Fri, 05/31/2013 - 16:42 | 3615098 cosmyccowboy
cosmyccowboy's picture

it's gonna be a long weekend! it reminds me of the memorial day weekend i was long 2 june cattle and all i could see on TV was the pics of forklifts  taking sick cows to slaughter....

Fri, 05/31/2013 - 16:42 | 3615100 WTFUD
WTFUD's picture

A couple more 'false flags' should get the sheople back in line

Fri, 05/31/2013 - 16:48 | 3615114 The Fonz...befo...
The Fonz...before shark jump's picture

Over to you Bernanke what have you got for us next tues

Fri, 05/31/2013 - 16:50 | 3615130 WTFUD
WTFUD's picture

As the tool at the bottom of saint marie bats show said ' there is no safe haven Even gold is selling off!
Made me run to my garden with the shovel. . .PHEW

Fri, 05/31/2013 - 17:01 | 3615158 Comrade de Chaos
Comrade de Chaos's picture

Sell in May and go awayyyyyy - checked :)

Fri, 05/31/2013 - 17:03 | 3615164 Ribeye
Ribeye's picture

"The fire rises"

Fri, 05/31/2013 - 17:03 | 3615167 EclecticParrot
EclecticParrot's picture

Here She Comes Now

Oh, she looks so good

And, oh, she's made out of wood

Fri, 05/31/2013 - 17:04 | 3615173 GrinandBearit
GrinandBearit's picture

CNBC:  "Sell off was due to end of the month rebalancing".

Fuck you CNBC.

 

Fri, 05/31/2013 - 17:09 | 3615185 Frank N. Beans
Frank N. Beans's picture

"Turn those machines back on!" 

Fri, 05/31/2013 - 17:31 | 3615245 GrinandBearit
GrinandBearit's picture

Yeah, turn them back on so they can dump another 1-2%.

Fri, 05/31/2013 - 17:12 | 3615195 DowTheorist
DowTheorist's picture

Two reasons increase the likelihood of a correction:

a) volume is rapidly becoming bearish for 3 reasons, as explained here: http://www.dowtheoryinvestment.com/2013/05/dow-theory-update-for-may-31-...

b) The Industrials made a higher high unconfirmed by other indices. Such lack of confirmation tends to signal a temporary top.

 

 

Fri, 05/31/2013 - 17:52 | 3615302 Bobbyrib
Bobbyrib's picture

I wonder if only one man was trading this afternoon..

Caution please lower your speakers before clicking the link below

http://www.youtube.com/watch?v=4DgbUBoxa48

Fri, 05/31/2013 - 17:59 | 3615320 edifice
edifice's picture

Nothing a cool 100 billion BennyBux can't fix.

Fri, 05/31/2013 - 23:02 | 3616015 chancee
chancee's picture

Yeah where's the deer?

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