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Stocks Tank 5 Days-In-A-Row As 52-Week Lows Reach 3-Month High

Tyler Durden's picture





 

"Good news" once again proved the undoing of the equity market (which some bright spark on TV said "has priced in the taper") and bonds and bullion also fell. Despite the ubiquitous late-day ramp to VWAP (thanks to to JPY selling and VIX stomping), equities closed red for the 5th day in a row for the first time since mid-September. Perhaps most notably, new 52-week lows reached its highest in almost 4 months. Volume was above average yet again as Treasuries saw yields hammered higher with the belly underperforming +4.5bps as 7Y broke above 2.20% to near-3-month highs. The USD sold off - driven more by EUR strength as Draghi disappointed in his jawboning - which proved to stumble all the carry trades as USDJPY moved back below 102. Gold and Silver were volatile but ended the day lower. VIX closed back over 15% for the first time in over 2 months and its reaching extreme inverted levels for 2013 into tomorrow's all-important NFP print.

 

52-Week Lows are rising rapidly...

 

USDJPY did its best to accompany stocks with EURJPY to jumpy (and the late-day pump failed at VWAP)...

 

As can be seen here once again the VWAP pump late on was perfect and failed perfectly...

 

This is the owrst 5-day run in 2 months - but there is still plenty of gains off the debt-ceiling lows...

 

VIX is extremely inverted (but not at extreme absolute levels)...

 

As VIX continues to diverge notably...it seems equity holders want protection badly...

 

Treasury yields are surging into NFP

 

Gold and Silver slipped...

 

Credit markets reamin saturated and unimpressed...have gone nowhere in 7 weeks!!!

 

Also, don't expect a huge short-squeeze tomorrow - the shorts are not in...

 

Charts: Bloomberg

 


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Thu, 12/05/2013 - 17:12 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

The S&P 500 is up 25% YTD.  In years past, being long here would be like trying to pick up pennies in front of a steam roller.

Allegedly, it is different this time.

Thu, 12/05/2013 - 17:16 | Link to Comment stocktivity
stocktivity's picture

Record margin!!  Do something Benny!!!! Get to work!!

Thu, 12/05/2013 - 17:38 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

If I had any balls I would be short. 

Hmmm.

How to best be short in real terms, but not in nominal terms? 

Thu, 12/05/2013 - 17:43 | Link to Comment Headbanger
Headbanger's picture

Grow em you pussy and trade!

Just fucking do it numbnuts!!   NOW!!

http://www.rleeermey.com/

Thu, 12/05/2013 - 17:55 | Link to Comment ChaosEquilibrium
ChaosEquilibrium's picture

The only viable short is GUNS and Bullets-Canned food!!!

 

The only shorts that will be able to clear funds when this CLusterfuck blows are institutional!!

 

Retail will never be able to cover and will never get paid!:)  Investment accounts are the worst possible paper to be in the near term!

Thu, 12/05/2013 - 18:01 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Dude, you need to chill Chaos. They are just taking profits before ramping up this beast for their magical holiday ramp. 

Thu, 12/05/2013 - 18:03 | Link to Comment Headbanger
Headbanger's picture

NOTTTTT!!

Thu, 12/05/2013 - 18:04 | Link to Comment Headbanger
Headbanger's picture

I agree.  But you forgot scotch and reloading gear!

And an obedient mean fucking dog or wife could help too.

Now I confused myself.

Thu, 12/05/2013 - 19:01 | Link to Comment Blano
Blano's picture

I had the balls to be short for 3 years.  All it got me was disappointment.  I threw in the towel the week before Hugh Hendry did.

Thu, 12/05/2013 - 17:43 | Link to Comment aVileRat
aVileRat's picture

Take a guess what the print will be tomorrow based on today's numbers. It will be a beat.

The US needs a reset to give Yellen the coverage to taper. This will let her do a January test, the drop will happen, they will talk it down. December numbers will hit in January, December numbers will be a big miss & revision down. Taper is moved out to March. Feb will be Obama vs. Republicans, debt limit will be rolled over to after both chambers rotate in regionals.

 

Thu, 12/05/2013 - 19:36 | Link to Comment Exponere Mendaces
Exponere Mendaces's picture

And gold down again. Remember that post ZH had about that little up-bar in the middle of a huge downtrending channel?

Yeah, that one.

 

Thu, 12/05/2013 - 17:15 | Link to Comment Charles Nelson ...
Charles Nelson Reilly's picture

They need a Hilsenramp.... STAT!

Thu, 12/05/2013 - 17:54 | Link to Comment Mercury
Mercury's picture

 

Taper off.

Thu, 12/05/2013 - 17:31 | Link to Comment Al Huxley
Al Huxley's picture

Everybody's so conditioned to perpetual up days that -.43% and VIX at 15 seems like earth-shattering volatility...

Thu, 12/05/2013 - 17:48 | Link to Comment SheepDog-One
SheepDog-One's picture

No shorts around to squeeze? Uh oh...

Thu, 12/05/2013 - 18:04 | Link to Comment Iam Yue2
Iam Yue2's picture

Anyone seen Hugh Hendry?

Thu, 12/05/2013 - 18:12 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Cold.

Thu, 12/05/2013 - 18:19 | Link to Comment Its Only Rock N Roll
Its Only Rock N Roll's picture

He is busy buying SSYS, VJET and other "trending" items

Thu, 12/05/2013 - 18:23 | Link to Comment Quant Jockey
Quant Jockey's picture

I pulled the trigger and shorted this bitch of a market today.  Here's hoping I didn't just blow myself up.

Thu, 12/05/2013 - 20:36 | Link to Comment Burnbright
Burnbright's picture

The problem I imagine with shorting is you never know when the FED decides to cut liquidity until it is too late. I wouldn't short anything with the FED around shoving money in everyones pockets and bra straps. 

Thu, 12/05/2013 - 18:24 | Link to Comment madbraz
madbraz's picture

Gold "ended the day lower"?

Putting it mildly, don't you think.

Thu, 12/05/2013 - 18:48 | Link to Comment Obchelli
Obchelli's picture

Tomorrow Numbers will be inline or missing exuberant expectation after ADP beat and today's number and unemployment will tick up which will give Fed cover to Not Taper in December. Futures will already be up by 70-80 points by NFP number. And will rally more afterwards. If there is a huge beat like 250K market will rally anyways with CNBC salivating as how great things actualy are and there is no bubble manana...

 

Thu, 12/05/2013 - 18:46 | Link to Comment SomebodySpecial
SomebodySpecial's picture

Thank god this is not the "owrst" post yet on ZH!

Doesn't anyone, especially the Tylor do a spell check on their work before they push that Submit button?

Thu, 12/05/2013 - 18:49 | Link to Comment 22winmag
22winmag's picture

Just a sputter before another 40 or so days of gains... followed by the big one on January.

 

Hedge accordingly.

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