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Dow Dumps 270 Points Intraday To Biggest 2-Week Drop In Six Months
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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Where the fuck is the DEER????
Inflation. Deer sightings now require 500 pt drop. Today may be a possum day, tho...
First dump is always the best dump .. to exit
Dump now or be forever dumped out .. missed the exit
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.
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
Xlu is only down 10% r u sure....
The Dow Jones Utility Index is down 35% in the last two weeks...
Not quite there, Mr. Math Genius. More like 6%.
Except he was speaking about the move for the past two weeks. Great job reading the chart idiot.
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.
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...
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.
Ooooh...an octobox of chattering idiots, even. MOAR chatter about "the market feels" and "I think" and "buy on the dip mentality."
+8 for "octobox"
Who will "buy on the dip mentality" on monday? -Maria B
I heard Maria B. and Cramer are making out .... like bandits.
That's cuz every time Cramer squeals "BTFD" she thinks he's soliciting her.
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!
Average Joe redeemed on this sad stock market's ass once again...huge mutual fund and ETF outflows.
The new Smart Money...Average Joe
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
She is the dow and He is Uncle Benny, classic, yep i'm twisted......
http://www.youtube.com/watch?v=jDSLR9PVWxg
Double that POMO you HOMO
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....
dont worry. monday flat day. tuesday new all time highs :D
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
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.
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!@!
the batteries in the 3:30 ramp remote control must have been put in backwards
"And you think this gives you power over me?"
This was my fault. Moved a good chunk into stocks last night in anticipation of end of month pomo rampo. Got wrecked, oops!
oh, you gone and done it!
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2013/05/FOMO.jpg
Treasury yields must come down, there's a whole lot of deficit spending that needs to be funded on the cheap. "winning"
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.
...and Ben's last "tool" is the one he gets to take his place as he retires to POMO Island...
The beatings will continue until morale improves...
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.
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
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.
Of course higher interest rates are good for financials. Have you looked at the ROIC at any major bank lately? Effing disaster...
Down 35% ... hmm ... seems Tyler got just a bit ahead of himself ... lol
Clairvoyance is an art best appreciated in hindsight. ;)
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.
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?
35 pts Tyler.
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!?
Wake me up when this happens again.
http://www.youtube.com/watch?v=E1xqSZy9_4I
Ahhh...'twas a thing of beauty.
That is an amazing recording
Nice avatar, Waldorf.
sounds like the Kentucky derby
SWEET!
FUk U BERNANK!
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.
This rally is broken. 169 SPY will stand as high of the year. It has been a long, hard slog comrades.
This time it wasn't the weather, it was allergies that did it.
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 crotchIt happened in Thailand enough said.......
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.
Nice +2 dSdev closure on the S&P.
http://blog.quantsig.net/2013/05/31/sp-9/
I think next week will be fun. Feel real good holding gold, silver and miners. Have no interest in the idiots Pomo days.
There are 2 kinds of people in these markets ( rackets ), Crooks or Clowns!
Long funeral directors & wood coffins
The Fed is losing control of the yield curve, if they can't regain control, this is going to get ugly.
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.
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.
BTFD. Vix is still coiling on the 6 month chart. We're going to retest the highs before the real crash. Watch :/
Surprising day. Not what I expected at all.
Nice 13bps range in the 10 year yield today, that's a sign of a healthy market.
"You get my son to call you Daddy, I fuck your wife, that's the deal."
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
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.
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
Well, Testing for QE full halt. Good results.
Next step: A preplanned 1000 dow pts drop/day for 3 days in row.
it's "tapering"
get with the lingo, man!
Too late for 'tapering'.
Only full halt available.
Unwinding - unlikely. If the Fed let the bonds expire, that's effective unwinding
"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
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.
" Please, do not worry."
I smired, good one.
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....
A couple more 'false flags' should get the sheople back in line
Over to you Bernanke what have you got for us next tues
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
Sell in May and go awayyyyyy - checked :)
"The fire rises"
Here She Comes Now
Oh, she looks so good
And, oh, she's made out of wood
CNBC: "Sell off was due to end of the month rebalancing".
Fuck you CNBC.
"Turn those machines back on!"
Yeah, turn them back on so they can dump another 1-2%.
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.
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
Nothing a cool 100 billion BennyBux can't fix.
Yeah where's the deer?