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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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Wed, 06/12/2013 - 16:14 | 3651380 camaro68ss
camaro68ss's picture

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

Wed, 06/12/2013 - 16:15 | 3651386 digitlman
digitlman's picture

Nope.

Wed, 06/12/2013 - 16:19 | 3651402 Clueless Economist
Clueless Economist's picture

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

Wed, 06/12/2013 - 16:24 | 3651421 B2u
B2u's picture

Nah, just dig up your Dow 10K hat.

Wed, 06/12/2013 - 16:30 | 3651450 Frastric
Frastric's picture

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

Wed, 06/12/2013 - 17:47 | 3651701 Spastica Rex
Spastica Rex's picture

Likely 616.

Wed, 06/12/2013 - 16:19 | 3651403 Bay of Pigs
Bay of Pigs's picture

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

Wed, 06/12/2013 - 17:23 | 3651630 BeetleBailey
BeetleBailey's picture

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

 

Pardon my French....

Wed, 06/12/2013 - 16:41 | 3651493 unwashedmass
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. 

Wed, 06/12/2013 - 16:19 | 3651405 Tsar Pointless
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.

Wed, 06/12/2013 - 16:28 | 3651443 rubearish10
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!

Wed, 06/12/2013 - 16:33 | 3651459 slaughterer
slaughterer's picture

Monster POMO tomorrow:

Thursday is the new Tuesday.  

Wed, 06/12/2013 - 16:34 | 3651461 Canadian Dirtlump
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.

Wed, 06/12/2013 - 16:43 | 3651498 Midasking
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

http://tinyurl.com/n8hmfya

Wed, 06/12/2013 - 19:40 | 3652024 Lets Buy The Dip
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. 

==> SEE CHART HERE!

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!!

Wed, 06/12/2013 - 16:14 | 3651381 ekm
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.

Wed, 06/12/2013 - 16:20 | 3651409 fonzannoon
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.

Wed, 06/12/2013 - 16:24 | 3651419 ekm
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.

Wed, 06/12/2013 - 16:26 | 3651431 fonzannoon
fonzannoon's picture

I drive past my gym everyday religiously.

Wed, 06/12/2013 - 16:27 | 3651437 ekm
ekm's picture

No man, come on.

You got to get the blood moving, bud.

Wed, 06/12/2013 - 16:30 | 3651451 Dr. Engali
Dr. Engali's picture

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

Wed, 06/12/2013 - 16:31 | 3651454 ekm
ekm's picture

Naah, 70% of the workout must be cardio.

Biking is no cardio.

Wed, 06/12/2013 - 16:39 | 3651466 Dr. Engali
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.

Wed, 06/12/2013 - 17:05 | 3651574 ebworthen
ebworthen's picture

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

Wed, 06/12/2013 - 16:37 | 3651476 RafterManFMJ
RafterManFMJ's picture

The first rule of Zombieland is...

Wed, 06/12/2013 - 19:28 | 3651995 ekm
ekm's picture

run

Wed, 06/12/2013 - 16:33 | 3651456 NotApplicable
NotApplicable's picture

Who needs that fancy shit? Get a farm!

I work out...  SIDE.

Wed, 06/12/2013 - 16:37 | 3651477 Dr. Engali
Dr. Engali's picture

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

Wed, 06/12/2013 - 17:02 | 3651567 alangreedspank
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. :)

Wed, 06/12/2013 - 17:07 | 3651583 Dr. Engali
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.

Wed, 06/12/2013 - 17:12 | 3651590 css1971
css1971's picture

Yes it is.

Wed, 06/12/2013 - 16:29 | 3651449 reload
reload's picture

Just on the BBC, sorry if old news....Steven Hester RBS CEO resigns/stands down. George Osbourne (chancellor) on TV doing a bad job of trying to look calm and in control..

Wed, 06/12/2013 - 16:32 | 3651455 ekm
ekm's picture

Control is only in Washington DC.

Even Japan tried to control it and it couldn't. Their PPT was inexperienced

Wed, 06/12/2013 - 16:44 | 3651482 reload
reload's picture

So true....RBS is a PD though...........

 I know 2 high ups at HQ well enough to think it is likely still holed below the waterline. If there is going to be a sacrifice they are in the frame.

Wed, 06/12/2013 - 18:58 | 3651905 ekm
ekm's picture

Hm, I hadn't thought of an UK primary dealer being chosen to go excrement.

 

Possible.

Wed, 06/12/2013 - 17:51 | 3651716 Panafrican Funk...
Panafrican Funktron Robot's picture

Wonder if it's related to ABN AMRO.  

Wed, 06/12/2013 - 16:14 | 3651382 Dr. No
Dr. No's picture

Bearish engulfing on the Q's.  Big SOB.

Wed, 06/12/2013 - 17:13 | 3651593 EclecticParrot
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.  

Wed, 06/12/2013 - 16:15 | 3651385 Sofa King Confused
Sofa King Confused's picture

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

Wed, 06/12/2013 - 16:16 | 3651392 Dr. Engali
Dr. Engali's picture

At least we are off the lows.

Wed, 06/12/2013 - 16:17 | 3651396 SheepDog-One
SheepDog-One's picture

FUCK U BERNANK!

Wed, 06/12/2013 - 16:18 | 3651399 JJ McApe
JJ McApe's picture

just a small correction

dow 20k soon :D

uncle ben will do the rest *cough cough*

Wed, 06/12/2013 - 16:18 | 3651400 CrashisOptimistic
CrashisOptimistic's picture

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

Wed, 06/12/2013 - 16:18 | 3651401 B2u
B2u's picture

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

Wed, 06/12/2013 - 16:19 | 3651406 Seasmoke
Seasmoke's picture

another 66%

Wed, 06/12/2013 - 16:20 | 3651407 digitlman
digitlman's picture

40% is better!

Wed, 06/12/2013 - 16:20 | 3651408 SheepDog-One
SheepDog-One's picture

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

Wed, 06/12/2013 - 16:36 | 3651471 Herman_the_German
Herman_the_German's picture

'Psychopathical 15K level' - fixed it for you

Wed, 06/12/2013 - 16:22 | 3651414 replaceme
replaceme's picture

 CIA deputy director Michael Morell resigns - Bullish?

Thu, 06/13/2013 - 00:05 | 3653034 RockyRacoon
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...

Wed, 06/12/2013 - 16:28 | 3651442 Devotional
Devotional's picture

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

Wed, 06/12/2013 - 16:28 | 3651445 EclecticParrot
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 . . .

Wed, 06/12/2013 - 16:44 | 3651500 BurningBetty
BurningBetty's picture

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

Wed, 06/12/2013 - 17:25 | 3651637 EclecticParrot
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."

Wed, 06/12/2013 - 16:40 | 3651484 q99x2
q99x2's picture

Still waiting for the silver that I bought with BitCoins to get here. Son of a bitch it won't ship until Monday. But it is finally shipping.

Wed, 06/12/2013 - 16:44 | 3651503 unwashedmass
unwashedmass's picture

 

what i love now about the metals markets is that the retailers and wholesalers have stopped playing along with the charade. they now have buy prices higher than the fake Comex spot price. 

 

tonight could be the night the JPM inventory empties. 

Wed, 06/12/2013 - 17:25 | 3651641 Go Tribe
Go Tribe's picture

God bless you.

Wed, 06/12/2013 - 16:40 | 3651486 dcohen
dcohen's picture

Time for the bald fuckface to jawbone, doubt it will help though.

Wed, 06/12/2013 - 16:41 | 3651490 lolmao500
lolmao500's picture

It's about to hit the fan seriously in Turkey...

http://www.guardian.co.uk/world/2013/jun/12/turkey-prime-minister-raises...

Erdo?an's chilling warning: 'these protests will be over in 24 hours'

'We have not responded to punches with punches. From now on security forces will respond differently,' Turkish PM says

Wed, 06/12/2013 - 16:50 | 3651519 A. Magnus
A. Magnus's picture

Erdogan is a fascist cocksucker whose thug police beat up on the elderly; the piece of shit needs to go and hopefully the Turkish people will be giving him the boot shortly...

Wed, 06/12/2013 - 16:48 | 3651515 A. Magnus
A. Magnus's picture

Who wants to bet they let the indexes slide about 5-10% to scare the Wall Street shitbags into demanding more QE?

Wed, 06/12/2013 - 20:42 | 3652260 roadhazard
roadhazard's picture

That's SOP. Paulson did it first. telling Congress to give him $750 billion or the whole thing was going up in flames.

Wed, 06/12/2013 - 16:52 | 3651526 buzzsaw99
buzzsaw99's picture

Fascism works!

Wed, 06/12/2013 - 17:16 | 3651604 Dead Canary
Dead Canary's picture

Let the world burn. We will be king of the ashes.

Wed, 06/12/2013 - 17:19 | 3651616 Pretty Vacant
Pretty Vacant's picture

Gravity still has a lot of work to do before I can wipe this egg from my face...

Wed, 06/12/2013 - 17:45 | 3651697 mydogisprettier...
mydogisprettierthanyou's picture

Im curious, do they only call home numbers, and only ones on the do not call list?

 

Ive never had a survey call on my cell and do not have a home number.

Wed, 06/12/2013 - 17:48 | 3651705 falak pema
falak pema's picture

the DOW is playing like the Miami heat; somehow San Antonio seems to be on a roll like the Yen. 

Wed, 06/12/2013 - 18:19 | 3651796 pragmatic hobo
pragmatic hobo's picture

"First Dow Jones Three-Day Losing Streak Since 2012"

that says a lot ...

Wed, 06/12/2013 - 18:30 | 3651833 gatorengineer
gatorengineer's picture

yeah we are down 4.5%  wow......  wake me when its 35% more.....

Wed, 06/12/2013 - 19:00 | 3651912 thismarketisrigged
thismarketisrigged's picture

fuck ya, 3 straight losing days. keep it coming.

 

i still got ways to go until my target of 600 s&p and 5000 dow are reached, but ive been very patient, and i cant wait for wall st to destruct soon.

 

also, dont u love how the reason everyday now when we are down in the markets, its ''because hedge fund managers are taking their money out for the summer to book a profit'' this according to cnbc of course.

 

its never because maybe the central banks plans are starting to unravel, or maybe the economy fucking sucks balls, its because hedgefunds are booking profits.

 

how funny though last friday when we were up 200 plus on dow, everything was pretty good. 

 

tomorrow is a big day, we need to continue the downward trend. i feel confident we could no matter what futures show at tomorrows opening. today was the weakest 120 ramp i have ever seen, it died so fucking fast. no volume or support.

 

lets make it 4 in a row. i still want more red though, because although 100 plus is still triple digits, - 127 from an index trading at 15000 is not that big a drop. its decent for an intra day drop, but i need japan type selling.

Wed, 06/12/2013 - 19:17 | 3651959 orangegeek
orangegeek's picture

WE NEED MO POMO.

 

MO POMO FIXES ALL.

Wed, 06/12/2013 - 19:36 | 3652009 DowTheorist
DowTheorist's picture

The primary trend of the market is about to turn bearish. The stock market is on thin ice for the reasons explained here:

 

http://www.dowtheoryinvestment.com/2013/06/dow-theory-update-for-june-12...

 

 

Do NOT follow this link or you will be banned from the site!