Bonds, Stocks, Dollar Pounded In First Dow Jones Three-Day Losing Streak Since 2012

Tyler Durden's picture

It was bound to happen: after the Tuesday "winning" streak was lost 8 days ago on the 21st unlucky week, it was the turn of the "BTFD mentality" that had prevented a 3-day losing streak in the Dow Jones since December. And while today's selling was still somewhat contained, it did not prevent the DJIA from closing below the psychological 15,000 support level, driven according to some, by the breach in the 200DMA of the USD index.

It was not a good day for Treasurys either which continued their slump, and also closed a the lows of the day:

The DXY's breach of the 200 DMA today was highlighted by some as the selling catalyst.

Perhaps most notable is that the number of companies hitting 52 week lows surged to the highest since October 2011, or just as the world was imploding on fears of a European dissolution and the market needed a global coordinated central bank intervention to preserve it.

Away from the DJIA, things weren't any better for the Nikkei futures either which while bouncing off the intraday lows, still closed just above 13,000 driven by a violent short squeeze in the USDJPY in the usual 3:30 pm block, which however had no impact on the Emini which closed at its lows of the day if still just above the 50DMA. Look for the 1600 in the S&P to be next downside support level of significance in the overnight futures trading session.

Curiously, there was no macro events, and no notable news to push this sell off which began alongside the start of trading following a rout in the dollar which as noted broke the 200 DMA early, and which never let up until the closing bell.

But perhaps what is most troubling for the bulls, and what in the past has provided a material bounce catalyst, is that as we showed yesterday  the level of shorts at this potential BTFD opportunity is far less than at other previous inflection fulcrum points. And absent someone stepping in to arrest the bloodletting, there is a lot of downside from here.

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camaro68ss's picture

Am i the only one who chears when the markets closes lower every day?

Clueless Economist's picture

Damn I tossed my Dow 15K hat....I better order a 14K hat

B2u's picture

Nah, just dig up your Dow 10K hat.

Frastric's picture

DOW 6666 hat if you're feeling evil...

Bay of Pigs's picture

I'd like to see a 100 day losing streak. Burn it down...

BeetleBailey's picture

Never happen, with Bennie and the Fucking Cocksucking Jets at the motherfucking controls.


Pardon my French....

unwashedmass's picture

i was kinda impressed they managed to keep gold and silver contained today. but, i think the HUI was permitted to close green.......


they will take care of that at the open tomorrow with the standard clipping of the metals stocks in the first five minutes. 

Tsar Pointless's picture

You might be the only one who chears when the market drops, but I myself cheer when it drops.

S&P 1550 to set up a nice head-and-shoulders as we make our way back down to sub-1000 and beyond.

rubearish10's picture

Well, let's talk about S&P 800 which is truly the valuation after you take out inflated prices (the P) from buybacks, dividdend plays and mom from all the free ZIRP cash ADDED to the reduction in EPS (the E) from downsizing, reduced loan lossess reserves + other BS and lack of cap ex. So the current P/E is so skewed it cannot be considered anywhere in the range of moderate, normal, historically cheap or attractive! There you go!

slaughterer's picture

Monster POMO tomorrow:

Thursday is the new Tuesday.  

Canadian Dirtlump's picture

not al all. I revel in shadenfreude. like the owner of wtc7 whose lineage shall remain nameless said... with respect to the market, PULL IT already.

Midasking's picture

Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked, ‘Account overdrawn.’ 
–Ayn Rand

Lets Buy The Dip's picture

to be a bear at the start of 2013 dangerous. Now its a bit different, Did anyone notice that the trannies or the leader of the market closed below the 50 EMA. 


Normally when the market closes below that, especailly the leader it means we are about to shit the bedpan so to speak, and more selling is about to occur. 

I think soon, the bonds are done, we are gunna see soon bond yields skyrocket, but there is a big head and shoulders on the monthly bonds chart. UH OH!!

ekm's picture

Stocks down, yields up.

NY Fed started tapering about a month ago I'd say.

Full halt soon.


NY Fed plus primary dealers are the buyer and the seller

They must have already voted out one or two primary dealers, soon to be lehmanized or MFGeed.

fonzannoon's picture

you should hear the teevee people yelling to assure everyone that the fed ain't tapering ekm. Everyone has a forecast of 1.75% on th 10 year but of course no stock correction in that process.

So buy some stocks, just make sure you buy some bonds while you are at it.

ekm's picture

LOL. About to drive back to Toronto from work, 35 km from Mississauga.

Eat then go to gym.

Can't allow myself to be CONTAMINATED by watching TV, it's been since 2001 without TV.

fonzannoon's picture

I drive past my gym everyday religiously.

ekm's picture

No man, come on.

You got to get the blood moving, bud.

Dr. Engali's picture

Who needs a gym? P90x and biking is where it's at.

ekm's picture

Naah, 70% of the workout must be cardio.

Biking is no cardio.

Dr. Engali's picture

There's lots of cardio in P90x and like anything else you get out of it what you put into it. I ride 25 to 40 hard miles on the bike. That's a lot of cardio. But to each their own as long as you are moving. I'm a tightwad and don't eat to spend the money at the gym.

ebworthen's picture

Careful Dr., lots of kids texting while driving, the dumbshits.

RafterManFMJ's picture

The first rule of Zombieland is...

NotApplicable's picture

Who needs that fancy shit? Get a farm!

I work out...  SIDE.

Dr. Engali's picture

I'd like to get a farm actually. I'm looking for some land now.

alangreedspank's picture

Make sure you hammer in your head the phrase "farm work is 5 times harder than I think it is" before buying. :)

Dr. Engali's picture

I grew up on a farm and I bailing hay for .75c an hour was my first job. I'm just looking for a little acreage for a small garden and to hunt on.

Dr. No's picture

Bearish engulfing on the Q's.  Big SOB.

EclecticParrot's picture

In some circles, this particular variety is known as an 'amoeba' pattern.  There's 'engulf', then there's "I shall have you for my lunch."   Viva la pseudopod.  

Sofa King Confused's picture

Come on S & P drop to 800.........I'll be f'n rich in fiat

Dr. Engali's picture

At least we are off the lows.

JJ McApe's picture

just a small correction

dow 20k soon :D

uncle ben will do the rest *cough cough*

CrashisOptimistic's picture

How can BTFD sentiment among traders cause anything when HFT is 80% of volume and there are no traders?

B2u's picture

So far so good.  Let's drop another 30%.

SheepDog-One's picture

'Psychological 15K level'? Did you mean to say 'psychotic'?

Herman_the_German's picture

'Psychopathical 15K level' - fixed it for you

replaceme's picture

 CIA deputy director Michael Morell resigns - Bullish?

RockyRacoon's picture

Most Americans can't find Argentina on a map, let alone tell you what's going on there.

Their experiences are just foreshadowing...

Devotional's picture

Will the DOW go up until friday's close and end up rallying as it always has? siiiiigh

EclecticParrot's picture

For perhaps the first time this year (other than the 'rebalancing' Friday plummet, which had some odd trading action), today's market was, dare I say, a bit heartening.  For once, there was no real stick save and not much intraday chicanery, with the typical 12:45 - 2:00 backing up as some shorts closed their positions to go to lunch, but came back in force by 2:15, right on schedule.  There were enough worries to amount to a 100 pt down day, hardly a catastrophe in a normal world, but greeted with almost teary-eyed nostalgia by traders so whipsawed by algo-nomic bullshit.  

Is this a full return to tradable markets?  I doubt it, but the fact that short positions could be initiated post 2:00 and held past 3:30 can't be a bad sign -- still, the fact that most of us probably closed out early, believing holding a short after 3 is like walking into a dark, S. Chicago alley holding an iPhone above one's head, means we've got a long way to go.  A long, long way . . .

BurningBetty's picture

Held to my TVIX position since $2,85 few days ago.

EclecticParrot's picture

I suppose risk is often proportional to reward.  Unfortunately, my constitution won't allow me to sleep and hold something like TVIX or TZA overnight.  If they were on a Monopoly board, the card would say:  "Go to Zero, go directly to Zero, do not pass GO, do not collect $200."