Stocks Slammed On Best Day For Bonds In 4 Months

Tyler Durden's picture

Treasuries appear to be shrugging off the Taper talk in favor of safe-haven status as they rally 6-7bps - the best yield compression since mid-February. US equity markets did not close off the lows (as the Nikkei is within 45 points of the dreaded bear market 20% correction level). Credit markets anxiety yesterday bled through today and they led stocks lower (with no Hindenburg Omen today). The VIX term structure bear-flattened dramatically as the 'picking-up-nickels-in-front-of-the-steamroller' trade finally got its fingers caught - the front-end of the curve smashed higher and is now at its flattest to the midcurve in 2013. The USD weakened as JPY was bid (and AUD sold hard) amid heavy carry unwinds. Volume was heavy today but the selling was very broad-based across the sectors (homebuilders remain worst on the week). The Dow ended with its biggest points drop in almost two months - no buy-the-dip-mentality victory today eh Maria?


No matter how hard they trued to pick up JPY and get back to VWAP - the algos couldn't trump the selling pressure...


From Friday morning's top, things are accelerating...


with homebuilders leading the way...


Credit led the way after yesterday's huge range day...


and VIX pushed up near its year's highs and its flattest term structure...


Why do we care so much about FX? Because it's all about the JPY carry trade - as it seems a few mainstream media types are finally catching on to...


Charts: Bloomberg and Capital Context

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Cognitive Dissonance's picture

OK. Who spooked the fracking dip buyers? I want names.

Buckaroo Banzai's picture

Anybody know a good double- or triple-short homebuilders ETF?

bigdumbnugly's picture

well, today is the day after fat tuesday, right?

Randall Cabot's picture

S&P down 78 points since May 17 when Art (The Wrong Way Old Fart) Cashin predicted a "parabolic rise" in stocks:

Fri, 05/17/2013 - 14:36 | Randall Cabot

Until Cashin just marked the top I was thinking that they were going to push higher and higher bringing in greater and greater fools before pulling the rug and leaving the last fools in holding the bag.

Mineshaft's picture

You may want to show the "Old Fart" a little respect as he is a lot more right than wrong and a TON more right than you.

You want to throw stones at someone but I look at your comments and you cant believe there would be a rally 6 months ago to 1450-1500.  Yeah great call.  It was only wrong by 15%. 

GREAT JOB!!!!!  You are much better than Art Cashin!  Moron.

Lendo's picture

Battlestar Galactica verbiage! 

Ivanovich's picture

All this happened before, and it will happen again!

Best Of Pute's picture

Regime change, bitchez !

RSloane's picture

All of their names end in A-L-G-O-S.

Obchelli's picture

They are setting up condition to Justify increase of QE 4EVA. PLus they will suck in fresh shorts for a new squeeze.


What did change realy? Don't you thin k they could continue market ramp as they did for 5 years... Someone is orchestrating this

Hulk's picture

DOW 6666 Bitchez !!!

Truther's picture

Hell bound it is folks. What a freakin' ride's picture

Every % down for the Home Builders an Angel Loses its wings.

SemperFord's picture

But every time 2 women kiss and Angel get its wings!

kito's picture

quick!!!! .......everybody run back to uncle sam!!!!!..........runnnn!!!!....hurryy!!!!....

polo007's picture

The Fed stimulus and better-than-expected corporate earnings have propelled the bull market in U.S. equities into a fifth year and driven the S&P 500 up 138 percent from a 12-year low in 2009.

The Chicago Board Options Exchange Volatility Index (VIX), or VIX, climbed 7.1 percent today to 17.42. The equity volatility gauge, which moves in the opposite direction as the S&P 500 about 80 percent of the time, reached a six-year low in March and has since surged 54 percent.

Raw-materials and financial companies sank more than 1.8 percent, the most among 10 S&P 500 industry groups. Alcoa Inc. fell 1.9 percent to $8.22 and Bank of America Corp. declined 2.3 percent to $13.06.

Homebuilders Fall

An S&P index of homebuilders sank 1 percent as all but one of its 11 members fell. The Mortgage Bankers Association’s index slumped 11.5 percent last week as the highest borrowing costs in more than a year led to a plunge in refinancing.

“Be careful what you wish for,” Rick Fier, director of equity trading at Conifer Securities LLC in New York, said in an interview. His firm oversees $8 billion. “Would you rather have higher rates and a stronger economy or a crappy economy and QE forever? I for one would like higher rates and a stronger economy, but I think people are most concerned with how much just a small uptick in rates had on the home-building sector and everything attached to it.”

Bay of Pigs's picture

If we wanted to read that article we would go to Bloomberg and get it.

Stop spamming this shit polo.

Yen Cross's picture

     I wouldn't want to be a trader on the Tokyo stock exchange. The Nikkei chewin em up, and spitting them out.

Japan NI225    12,879.00    13,014.87    13,284.00    12,859.00   [ -135.87    -1.04%]    20:24:12

kito's picture

yen, do you see your namesake hyperinflating? can they print to the point there is no longer any confidence in the yen? its very hard to see that happening........

Yen Cross's picture

     Kito, that was a great question. I'm looking at the DXY/AJX charts as we speak. I'm seeing the beginnings, of a complete yen breakdown.

     It appears that the usd is actually starting to strengthen against the yen in a 'risk off' trade profile. To answer your question, yes & yes.

     Central banks are losing control, and it has very little to do with Fed. tapering. I'm not sure if you're familiar with past BoJ (currency)interventions, and how they worked out ? The possibility of Japan blowing up is very real.

kito's picture

is there a "no confidence"number for the yen when, if breached, there is no turning back--certain destruction is priced in???

Yen Cross's picture

   Kito I would say>  97.03 and (just below) the 61.8% retrace of (103.724- 92.561) is probably a heavily guarded area.

   I'm actually long usd/jpy with a 'trailing stop'. If it blows up, I'll take a minimal hit if it stops out. If it retraces I'll make a nice profit.

kito's picture

i will keep that it mind.......thanks

Yen Cross's picture

   We should discuss Europe, and the widening perpherial spreads. ;-)

    FWIW Kito,

     Japan Buying Foreign Bonds (prior week was Y -1117.3B)
    Japan Buying Foreign Stocks (prior week was Y -104.9B)
    Foreign Buying Japan Bonds (prior week was Y -457.2B)
    Foreign Buying Japan Stocks (prior week was Y 27.4B)

OpTwoMistic's picture

Glad Benny pumped all your money in or we would be down moar,

gatorengineer's picture

Dont worry he is throwing 5 large at her tomorrow.....

malikai's picture

$5 trillion?

That should be good for 30 s&p points.

astoriajoe's picture

What happened to corn? or is that just a glitch in my matrix?

OpTwoMistic's picture

contract to waste it in gasoline expire?

denverdolomte's picture

Ben Bernanke : He received the doctor of philosophy degree in economics from the Massachusetts Institute of Technology in 1979 after completing and defending his dissertation, Long-Term Commitments, Dynamic Optimization, and the Business Cycle


**Note to self having a philosophy of economics still makes you an idiot. 

***Second note to self avoid MIT and Harvard for Bachelor and PHd of Arts degrees.

How da'fuq does one lead the Federal Reserve with Liberal Arts degrees? Bachelor of Arts (Harvard) & Doctorite of Philosophy from MIT? 

jcaz's picture

....Because those who can, do.....

No real businessperson would be caught dead in the Ivory Tower.....

jcaz's picture

....Because those who can, do.....

No real businessperson would be caught dead in the Ivory Tower.....

JJ McApe's picture

FED has been "rescuing" economy for past 5 years. We have highest unemployment ever if you count people that gave up on jobs. We have highest amount of people on food stamps ever. I wonder where we would be without the FED. Something is telling me, we would be better off.

PiltdownMan's picture

I never thought the economy was improving. Just HOPED it was.

SheepDog-One's picture

Poor ol Maria Fartaroma.

Buckaroo Banzai's picture

She seemed OK when I snuck out of her apartment this morning.

She snores, though.

Randall Cabot's picture

Yes she does. I was surprised to see that tramp stamp too.

i_call_you_my_base's picture

I bought the fucking onion dip today. Does that count?

Panafrican Funktron Robot's picture

Dean's onion dip + Ruffles + rum 'n coke = college.

Au_Ag_CuPbCu's picture

Dean's onion dip + Ruffles + rum 'n coke + massive student loans = college.  Fixed it for ya...

One And Only's picture


If a stock market goes up 200% in a year and than falls 20% over a 30-60 day period is it a bear market or a bull market?

1000924014093's picture

Whar was  PPT  ??


bnbdnb's picture

6X6X6 = 216 tomorrow is 6/6/2+0+1+3 or 6/6/6

malikai's picture

The dip appears to be being bought in gold.

css1971's picture

Think happy thoughts

Think happy thoughts

Think happy thoughts


Oh come on. Tomorrow is going to be a 15G Half Cuban reversal. To da moooon.