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Markets Turmoiled By Icahn Truthiness

Tyler Durden's picture


What Carl giveth, Carl can taketh away. We have warned for a month that credit markets have been decompressing (amid saturation) even as stocks went only one way. The S&P has hit almost its LABIA-based Fed fair-value and VIX/VXV hit extreme complacency levels so we were primed for a fall so it's ironic that Icahn pricked the bubble (at least for one day). More ironic still was CNBC's dismissal of his warning "as he is not a market timer" - when they wait with baited breath for his next 'buy AAPL' tweet. Bill Dudley's economic bullishness (and hawkish policy talk) also weighed on stocks. Credit was weak from the start - even as equities broke to new records; Treasury yields slid all day (with a small bounce higher after Europe closed). The USD's early weakness retraced to unch by teh close - rallying from the US open (but EURJPY was a big driver of weakness in stocks). Commodities did not bounce - all flushed lower around the European close and never recovered as stockd dumped.


No Dear today... but close... (as the NASDAQ test up towards 4000 - managing  3999.47 - before tumbling in its high-beta way...


Credit has been flashing warnings for a while that the game (in the short term at least) is up...


But of course, today's drop in the context of the last month is hardly death for equities - though given our context of a never-falling market, it is a shock...


Spot the difference - Icahn's honesty tanked EURJPY (carry) and thus stocks declined...


FX markets were a roundabot with Europe selling the USD and US buying it...


Treasuries were a one-way street lower in yield (with a bounce at the European close)


Commodities rallied into the US open and European close then tumbled and flatlined all afternoon (even as USD rose and stocks slid)...


VIX bounced notably back above 13%


Charts: Bloomberg


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Mon, 11/18/2013 - 17:12 | Link to Comment RmcAZ
RmcAZ's picture

If there is a bubble in talk about bubbles on CNBC, then is there actually a bubble?

Mon, 11/18/2013 - 17:14 | Link to Comment NotApplicable
NotApplicable's picture

Hindsight is 20/20 vision.

Mon, 11/18/2013 - 17:15 | Link to Comment madcows
madcows's picture

past is prologue.

Mon, 11/18/2013 - 17:17 | Link to Comment Say What Again
Say What Again's picture

Where is the BONUS chart?

Mon, 11/18/2013 - 17:49 | Link to Comment TruthInSunshine
TruthInSunshine's picture

All you need to know about to what incredible extent and to what amazing degree the equity "markets" are being floated on the back of a GINORMOUS Fed fiat/debt bubble when the comments of a septic pustule & parasite the likes of Carl Icahn are given such extraordinary coverage intraday.

I thought I'd never see the likes of the '99 or '07 silliness again, but we've surpassed it.

The government should just start dropping fiat down everyones' chimneys if they wish to avoid a deflationary crash at this point. Ben done 'gone and blew one XTRA BIG ASS BUBBLE FOR THE HISTORY BOOKS.

The Lame Stream Financial Media is even catching on to the extraordinary (and Krugman-approved) fraudnomic monetary policy Kuroda-nomics represents in Sheeple Japan.

Mon, 11/18/2013 - 18:34 | Link to Comment atomp
atomp's picture

Where is the labia BONUS chart?

Mon, 11/18/2013 - 17:16 | Link to Comment Say What Again
Say What Again's picture

Don't worry boys and girls.  We will rally to a new high on Tuesday.

Mon, 11/18/2013 - 18:22 | Link to Comment Headbanger
Headbanger's picture

It's all over dude!  The Fed delivered S&P 1800 a month earlier than promised and if it ain't enough for ya they could give a shit now!

Plus the political imperative to support the Promised One is a joke now that he's toxic material from Obamascare

The 1% are all set now and leaving for much much nicer destination than the violence ravaged US cities soon will be.

I predict Obama will pull a "Hitler revenge" on his own people for rejecting Obamacare by letting it all fall apart now.

Oh, and stay out of subways that can be flooded as Hitler did in Berlin when it fell and drowning thousands of Germans there!

Mon, 11/18/2013 - 17:17 | Link to Comment ebworthen
ebworthen's picture

Everyone knows the markets are a bubble; the chit-chat about it on CNBC provides that dash of salt to balance the sweetness of the delusion and keep the cognitive dissonance at bay.

Mon, 11/18/2013 - 19:09 | Link to Comment RockyRacoon
RockyRacoon's picture

If those charts were electroencephalography, the poor patient would be determined to be schizophrenic!

Mon, 11/18/2013 - 17:15 | Link to Comment HUGE_Gamma
HUGE_Gamma's picture

Today was a good day for a BONUS CHART!!

everybody loves the BONUS CHART

Mon, 11/18/2013 - 17:21 | Link to Comment dcohen
dcohen's picture

Soon Icahn will buy

The Con Man just want a bit cheaper stuff, after mom & pop just got in, and he scared the daylights out of them.

Mon, 11/18/2013 - 17:20 | Link to Comment bubblemania
bubblemania's picture


Mon, 11/18/2013 - 17:22 | Link to Comment fonzannoon
fonzannoon's picture

Icahn and truth don't belong in the same sentance. he is a twat waffle (h/t Francis Sawyer)

Mon, 11/18/2013 - 17:25 | Link to Comment 666
666's picture

I'll bet Icahn had a bet with someone that he could pull the Dow and SP500 below 16000 and 1800 respectively by just uttering a few words.


I'm surprised, however, that the words he spoke were the truth for a change. I didn't think he had it in him.

Mon, 11/18/2013 - 17:30 | Link to Comment dcohen
dcohen's picture

Just goes to show this market is nothing but hot air.

Mon, 11/18/2013 - 17:29 | Link to Comment midas360
midas360's picture

can the market go against QE?  Until they start tapering, this market will continue to adrift higher. 

Mon, 11/18/2013 - 17:34 | Link to Comment Duke Dog
Duke Dog's picture

"Investors" might need to fear once Buffett/BH has covered all those $billions of PUT options written a decade ago.


He might actually start telling the Truth again in an attempt to save his "legacy", but then again I suspect he was always on the dark side:)

Mon, 11/18/2013 - 17:45 | Link to Comment dcohen
dcohen's picture

For how long will this retarded market let itself get fooled by FED's verbal intervention, cool off, heat up, cool off, heat up, truly a retarded market. The FED has scared the market to the degree nothing else matter any longer, except the daily mouthpieces of the fucked up FED.

Mon, 11/18/2013 - 18:06 | Link to Comment disabledvet
disabledvet's picture

hmmmm. dollar rising, equities selling off and earnings looking like they're long past peak. of course i'm doubling down on my commodity bet!

Mon, 11/18/2013 - 18:09 | Link to Comment FuzzyDunlop21
FuzzyDunlop21's picture

Markets fell today because K-Hen was busy downvoting all comments in the Bernanke assassination article.

Next time I see the serial junker striking, Im going all in short.

Mon, 11/18/2013 - 18:15 | Link to Comment thisandthat
thisandthat's picture

TBH, it seems it was the stocks that tanked EURJPY, if I read the graph correctly

Mon, 11/18/2013 - 18:42 | Link to Comment JustObserving
JustObserving's picture

Icahn and Truthiness in the same sentence is an oxymoron  He should have been jailed years ago.

Mon, 11/18/2013 - 20:08 | Link to Comment orangegeek
orangegeek's picture

Icahn is all shorted up and then spews.


Icahn should be shot and pissed on and left in a ditch to rot.

Mon, 11/18/2013 - 21:29 | Link to Comment TheRideNeverEnds
TheRideNeverEnds's picture

Are you ready to BTFD?

Tue, 11/19/2013 - 00:54 | Link to Comment Notarocketscientist
Notarocketscientist's picture

Icahn is a ______ ?

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