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Stocks Dump To End Best Month Since January

Tyler Durden's picture




 

Good news (Chicago PMI) was very bad news and sent stocks into freefall early on. Hedgers then appeared to lift their protection (sending VIX lower) and igniting a surge back to the highs in stocks, tagging the stops, and then stocks slumped to end October (among the best month in the year for most indices) with a 2-day losing streak (the first in over 3 weeks) but EU stocks outperformed. Stocks had been ignoring the "taper-on" trends in Bonds (7Y TSY +5bps on week), USD (+1.3% on week), and precious metals (-2% on the week), but into the close, volume picked up and equities tumbled. Silver and Gold were monkey-hammered lower (ending Oct +1% and-0.3% respectively). FX markets saw USD bid aggressively (though CAD strengthened against the greenback). Credit remains considerably less enthusiastic than stocks. An ugly close for stocks... (blamed on Israel for now)

What exactly were stocks thinking... blue line (green arrow craziness)

 

The month of October - EU stocks win, WTI crude loses, gold and silver revert to unch...

 

Trannies had their 2nd best month in 2 years...

 

Today's equity market action seemed very mechanical...

 

As VIX protection was sold early (and underlying risk unwound into the rally)...

 

Credit markets are decidedly uncomfortable...

 

FX markets remain active with the USD well bid (but note JPY not basking inthis weakening trend and CAD actually well bid against the USD)...

 

Summing it all up...

Charts: Bloomberg

Bonus Chart - The Facebook roller-coaster... bounced off 50DMA this morning, teste dabove the 20DMA but closed below it...

 

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Thu, 10/31/2013 - 16:16 | 4109598 Headbanger
Headbanger's picture

You ain't seen nothin yet!

Thu, 10/31/2013 - 16:18 | 4109601 HUGE_Gamma
HUGE_Gamma's picture

BONUS CHART!$!$!.. EVERYBODY LOVES THE BONUS CHART

Thu, 10/31/2013 - 16:18 | 4109608 101 years and c...
101 years and counting's picture

anyone else notice the UST was in a rush to settle this week's debt auctions today?

Thu, 10/31/2013 - 16:28 | 4109628 Running On Bing...
Running On Bingo Fuel's picture

Don't fucking worry my friends. The year will produce a santa clause rally the likes of which you have never witnessed.

Over.

Thu, 10/31/2013 - 16:34 | 4109634 spastic_colon
spastic_colon's picture

i mean this in the most sincere "i wish it weren't true" way, but tomorrow all will be forgotten in the "1st day of the month cuz it's friday" rally in equities.

Thu, 10/31/2013 - 16:46 | 4109663 Headbanger
Headbanger's picture

No worries cause it won't be true.

Thu, 10/31/2013 - 18:54 | 4109983 Seahorse
Seahorse's picture

insanity clause

Thu, 10/31/2013 - 16:28 | 4109629 AGoldhamster
AGoldhamster's picture

I say we have seen the highs for EURUSD and the precious metals this year: 25th, 28th and 30th.

Rest of the year will be a debacle. 

Or manna from the heavens for those shorting above mentioned markets.

Indices possibly meeting their highs of the year around 7th-15th November.

DYOD as I could be dead wrong.

 

PS: those longing these markets - IMHO - are playing Russian roulette with 6 bullets.

Thu, 10/31/2013 - 16:34 | 4109638 optimator
optimator's picture

So, what was the news just after the close that the Schmardt piple got just before the close?

Thu, 10/31/2013 - 16:54 | 4109683 asteroids
asteroids's picture

There are now about 40 trading days left in the year. There are also holidays. But, there is major grief on the horizon as Obozo and his friends get into a pissing contest with the Republicans. Gawd knows what the Europeans and Chinese are up to. If you had 20%+ gains on the books wouldn't you want to lock it in about now?

Thu, 10/31/2013 - 17:18 | 4109741 Tegrat
Tegrat's picture

But, there is major grief on the horizon as Obozo and his friends get into a pissing contest with the Americans who have not yet been zombified.

 

There fixed it for ya.


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