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Stocks Collapse To Biggest Two-Week Drop In 11 Months
The 4.3% drop from recent highs in the S&P 13 days ago is the largest drop over that period since mid November 2012. The S&P broke its 11-month uptrend and closed below its 100DMA having fallen 11 of the last 14 days post Un-Taper. VIX broke back above 21% briefly (almost its highest level of 2013). Homebuilders were ugly as were the rest of the high-beta momo stocks. Equity markets tracked FX carry (AUDJPY mostly) on the day but the USD ended the day modestly higher (albeit amid wide dispersion). Treasuries were mixed with the short-term battered (1w to 1m Bills +10-15bps!!!!), 2Y +5bps on the week, 30Y -2.5bps (which is notable in that it is not tracking stocks implying some angst over TSY ownership). Gold, Silver and Copper were pushed lower as stock fell but the PMs remain bid on the week. Stocks dived into the close with no VIX monkey-hammering to help; The Dow is now 5.9% off its highs and testing its 200DMA for the first time this year.
T-Bill yields exploded:
And Treasuries are diverging with major flattening occuring...
The S&P lost its 100DMA and its 11-month trendline...
Since the Shutdown started, indices are down only around 2% (for now)...
Led by homebuilders and Discretionary...
Stocks tracked FX carry all day...
and across asset-clases - Precious Metals are #winning, long bond is seeing some gains, but USD, T-Bills and Stocks are tumbling...
Charts: Bloomberg
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We need moar cow bell
we are all bulls now .... both the donkeys and elephants
Buying opportunity of a life time. Buy Stockz. We are not in a bubble. We are growing.
That cow won't last long in the tent squatter camps just outside the closed national parks!
B-B-Q, bitches!
The Dow is now 5.9% off its highs
Let me know when it gets serious.
When it becomes serious, you have to lie.
that's a trademarked european political custom. no copying allowed. and it implies that some european politicians begged their electorate for understanding and forgiveness by that - and they received them
now I don't want to imply that our politicians are better. but I don't think that this angle would work, in the US and the UK. in the same way as sexual scandals kill political careers, in Oceania, but not in eurasia
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back on track: "Gold, Silver and Copper were pushed lower as stock fell but the PMs remain bid on the week"
this time I would not write "were pushed". imho in the West PMs are becoming something to buy if things "become better". something that lets me dispair a bit, frankly. yet the East buys. period and no "market signals" needed
Gold down and the 10yr flat. Non event.
When circuit breakers are going off an the 10yr is heeading towards 4% while gold busts through $1,800 to the upside while reports of bullion bank delivery defaults are hitting the wire I will make my wife shut off HGTV so we can get out of dodge.
The Little Lady might balk since she won't be home to receive all the UPS Amazon.com shipments.
At least a guy can still dream.
blah, blah, blah..........
......so we can get out of dodge.
-LOL !
by then, it will be far too damned LATE....
"The Dow is now 5.9% off its highs
Let me know when it gets serious"
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Indeed. Putting this in perspective, DOW is still nearly 1,400 points HIGHER than it was a year ago, on Oct. 10th 2012. Until things really get serious, if ever, this is yet another blip on the screen. As long as the Fed keeps pumping moar fake money, there won't be any panic. Fuck them all!
i'm still ticked off my Treasury bet got obliterated this summer. not ready to call an exit...or an entrance...yet though.
Better fire up the Ben-Signal.
Best week evah!
Thanks Barky, Benny and Congress Critters
Hey Obama and Members of Congress
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From The American People
Cheers to the Cloward-Piven Keynesians! How could they possibly follow this triumph?
Re: How could they possibly follow this triumph?
Mars Defense Shield. Big-Mic, and the patriots working it, would be happy.
FYI - an increase of the 1mo bills from .003 as recently as Sept 29 to .35 now is about an increase of $10 Billion or more dollars in interest to be paid just on these $3T + of debt rolling over every month...things could get real expensive very quickly - A move to 1% on the short end will result in an increase of $30 billion monthly just to pay the 1 mo debt??? Is that right that bills are paid face value of interest rate or is this an annualized interest rate???
Isn't this the Japanese conundrum that the slightest interest rate increase when starting at basically @ zero interest can bring the whole thing down??? Particularly because this is not like a big move in the 10yr that will take 10yrs to get fully priced into new issuance replacing rollover...this will get fully priced in in 1 months time...If this isn't reversed overnight, then, Weezy, this is the big one!!! Not to mention the leveraged interest rate derivatives that will explode on this change...
Look at the Japanese debt/gdp and then look at their borrowing rates. If Japan has not detonated yet, we have a long way to go.
No, u see almost all $5 T of foreign held debt is in Bills - this has all the appearance of foreigners leaving the Treasury market and the debt ceiling is being used for cover...there is literally no way for the Fed to absorb the huge quantities of Bills being sold w/ only $45 billion in QE...Japan has no such issue as it's all held domestically
Yeah, but... The yen isn't the so-called reserve currency. That could present a problem.
agreed ham-bone. There will be moar QE. That's all this is cover for.
but it can't be a little more - it's gotta be double or triple moar and now('ish) to be able to impact the much larger Bill market!?! Fed has maintain existing $45 B for Notes / Bonds / TIPS while simultaneously needs maybe a $100 B mo for the Bill market to avoid short end rates rocketing as "somebodies" don't continue to roll over and/or sell
what I think I just saw is the Fed being forced to move into hyper monetary creation - a massive increase in QE??? Somebody explain how I've got this wrong...
we could get a huge price increase ala 2004 when fuel prices doubled in a day.
i want - 900 dow days, this is bullshit.
hopefully bohener says something to spook the markets at 430
To get his put contracts further in the money?
Cancel those trades!!!
Call me when it drops 15 percent
Russell is still yawning. When IWM breaks 100, call it serious.
Russell can't even go down to 1000. After the massive bubble, even a 20 percent pullback , its still overpriced
But deep puts are starting to get a bit pricey. They aren't selling but someone is hedging. I'd be tempted more if I didn't think the worse case scenarios have a lot of counterparty risk. I suspect I'm going to be buying more food not options.
S&P500 hourly yesterdays said more downside ahead.
http://bullandbearmash.com/chart/sp500-hourly-drops-channel-support-outl...
Things could get uglier this week.
The opportunity of a LIFETIME to get in after a big dip.
Opportunity only knocks every few months in a "Keynesian" infinite debt bubble world.
Stocks down a 'shocking' 5% or so below all-time record bubble highs.....consider me pretty much totaly unimpressed.
Collapse.. Huh. More like just a bit of a downdraft.
Didn't ya hear ZH. BTFD already.
Shittier IS better.
Why do I get the feeling that this down draft is only due to the nyfed and the primary stealers getting out of the way of the real market ---at the behest of obama. Oh, I know why! I read ZH!
It is almost like the PPT was told to stand down by Obama to inflict maximum punishment on Obama's mortal enemies.
My Dow 10,000 hat is ready.
i'll see you and raise you the "oil at one thousand" hat.
Boo, fucking hoo! I lost.... not a fucking dime, I quit this con game years ago.
If you aren't buying you are stupid.