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Stockholders Stunned As Trannies Tumble Most In 3 Weeks
But, but, but... was the common refrain heard across mainstream media - perplexed that i) stocks could close anything but green, and ii) stocks could close green after the FOMC kept the dream alive. Markets broke everywhere (stock and options) and VIX saw flash-smashes a number of times as the great rotation from stocks to levered stocks (i.e. options) continued (in what smells a lot like the 'what could go wrong' 'portfolio insurance' days of yore). Stocks slid lower into the FOMC, knee-jerked up to VWAP, then skidded to 2-day lows, bounced towards VWAP once again then slumped into the close for the worst day in 3 weeks (down a measly 0.6%). Treasury yields had fallen notably into the FOMC statement and snapped higher after (30Y +4bps on the week). The USD had been rising all week and was smashed higher on the FOMC news (+0.7% on the week). Gold and silver kneejerked lower but bounced back (-0.5% and +0.75% respectively) on the week.
The small drop today is the biggest 'collapse' in 3 weeks... kinda sad really...
VIX went lower post FOMC as it appeared hedgers lifted protection and redced underlying exposure...
which is quite clear from this chart...
Which provided an artifical lift to stocks that was faded on heavier volume into the close...
Gold and Silver kneejerked lower but bounced back somewhat...
Treasury yields surged higher...
and the USD surged (and faded back a little)
Credit markets are at 2-week wides - as stocks are just off all-time highs...
Charts: Bloomberg
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Stupid
Thinner and thinner goes the volume. Higher and higher goes the leverage.
What could possibly go wrong? They obviously got this shit.
why not - ? http://hedge.ly/19T7HMU
missed the short
as usual the knee jerk reaction is the complete apposite of what in fact what one should expect given the news that the Fed still a factor. The media of course jumps on the apposite news and screams "buy sodastream!" not saying go all in and buy zero coupon bonds here but the amount of over capacity built in here is a sight to behold...all based on a "forever weak dollar." rank speculation at its worst and remains to be seen just how the un'reality really will "unspool." again not bearish...nor have I been this year either (just speculating on the wrong side as it turned out.) certainly wouldn't be a blanket seller in here even if the market corrects 20% between now and the end of year. that would be an anomaly historically btw. normally strong starts equal strong finishes...so we'll see.
Fucktard Tranny stockholders obviously should have been holding FB stock....these people don't know how to do anything right, even when it's broadcast in large neon letters.
I agree
I interface with several components of the T-Index. The market is fuck all horrible unless your a railroad hauling oil, but anything that fixtured on the consumer is just blowing for air.
That there has been a run up in the teeth of one of the worst markets I've ever seen tells me this is going to end very badly and very abruptly.
I guess it depends on herd physcology, but these terrible lies about the health of the economy are going to become obvious in the near term.
Oh the humanity!
They're setting up the collapse. They are shorting the shit out of everything. They have to keep if high to get short. This bitch is gonna crash soon. They have everyone thinking the market is just going to go higher and higher. All the muppets are getting in long and the smart (corrupt) money is getting out or getting short. There are still some muppets buying houses. Who's gonna pay their mortgage when real estate gets cut in half or worse. It's over. the ONLY thing keeping the entire game going is the ILLUSION of the stock market.
Wait, Berny and Ol' Yeller promised that Mr Market would not correct!
Damn............ok never mind
A REAL correction would be the market going to fucking ZERO and clean out this rat's nest once and for all and get the fuck rid of it.
Man, I got bitch slapped today. I was long the Euro, half S&P, and heavily long gold and silver going into FOMC. I was sitting on a substantial profit from great entries in silver and gold after accumulating on the dips, thinking it would rally into FOMC. Everything was acting perfectly, we got the no change everyone was expecting, then BAM, bitch slapped. All I remember is scrambling for the sell button. I took everything off somewhere in the silver bounce. Still a nice profit but I was basking in green with eyes on selling into the explosive FOMC move UP for a hang a trophy on the wall type of slaying. I should have taken half off before the announcement.
I have no idea what's gonna happen now. If silver loses the 50-day, there's an uptrendline that's currently running thru $21 that it will likely bounce from for at least a short-term day trade. I still think it's possible silver makes it to the 200-day at $24 and gold to $1400, especially if they hold their 50-days, but I'm too shell-shocked to be involved at the moment. I'm gonna look for easier trades. And I'm done with having exposure to FOMC day or the day after. There are trades you can see what is likely to happen based on chart patterns and support/resistance, and then there is all the completely unpredictable news event nonsense and the even more nonsensical reactions. That part of the game is just not for me anymore. The times you get it wrong aren't worth the times you get it right. Tom Sosnoff, you and John Carter are converting me more and more to the idea of selling premium as the smarter way to trade, not to mention a better style match for my temperament.
The ten-year literally reversed at the 200-day. Until they clear it, they are suspect.
ES is likely pulling back to at least 1730, which is horizontal support and the 20-day. I'll look to short some day trades, but here's the thing about tops. They are a process that takes weeks or longer to unwind. When the top happens it will look exactly like last May/June, except it will lose the swing low. There will be massive selling in the high volume hours and low volume retail melt ups. There will be overnight low volume melt ups. There will be a backtest of the highs or a slow grinding stop run meltup like in August. Non black swan tops that are controlled leave traces. They aren't inverted V shapes. I just think it's important to remember that when shorting this market. It's still possible we make it to 1790 by year end.
+100 selling premium as the smarter way to trade