The Deer Returns: Stocks Tumble, VIX Most-Inverted Since August 2011

Tyler Durden's picture

S&P futures dumped their most in almost 4 months on marginal volume today as a budget deal (moar fiscal means less moar monetary policy) and a potentially hawkish Stan Fischer on the Fed spread taper fears across all assets with gold lower, Treasury yields higher, and USD rising. New 52-week-lows spiked to 4 month highs as higher beta muppetry took Trannies down most in almost 4 months. The S&P tested back below the payrolls-data and FOMC Minutes launchpad levels from last week as rather notably, while most sectors are still up 5-10% from the debt-ceiling lows, Utilities are now unch. Treasuries weakened back to unchanged from the payrolls print for 5Y (though 7s-130s are -3 to 4bps still). This is the biggest jump in VIX in 2 months as the term structure is the most inverted since US downgrade levels in Aug 2011. Dow <16,000; S&P <1,800; NASDAQ ~4,000 - Retirement Off!

It's a just-greater-than-1% decline in stocks and judging by the decibles on CNBC, the world just ended... pathetic but it's time to bring out the deer...



S&P Futures dropped the most in almost 4 months... and closed at 3 week lows..

as all the indices rolled over...


New 52-Week Lows spiked to its highest in over 2 months...


And the advance-decline peaked a few months back... (as breadth remains weak as we warned)

(h/t @Not_Jim_Cramer)


The S&P 500 had a bad day... 50DMAs are coming back into focus on all the major indices... the S&P saw its lowest close in 3 weeks.


Utilities are now unchanged since the debt-ceiling lows and sectors are giving gains back in a hurry...


VIX saw its biggest pop in 2 months as the term structure is the most inverted (short-term risk the most above medium-term) since Aug 2011...


Not even JPY carry could save the day as the Fischer-fed news and the ugly 10Y auction didn't help...


Treasury yields were banged higher - back to unch from payrolls...


Gold and Silver lost a little ground as WTI dropped back to unchanged from payrolls...


Charts: Bloomberg

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1835jackson's picture

Taper on? I think so. Time to take off some cream.

Beam Me Up Scotty's picture

If they taper at all, it will be a smaller amount than is expected.  Santa Claus rally ON.

nuclearsquid's picture

What a coincidence.  I actually ate venison today.


Fukushima Sam's picture

Is this the beginning of the big deflation that comes before the hyperinflation?

El Vaquero's picture

I have 275-300lbs of elk hanging in my garage @39f right now.  It's a member of the deer family.

ceilidh_trail's picture

WAS a member of the deer family...

1835jackson's picture

Bernanke has to leave a credible legacy.....

Cognitive Dissonance's picture

Or at least not be laugh out loud funny. The 'legacy' bar is pretty low at this point.

insanelysane's picture

As William said,

The traders have kids that want the GI Joe with the kung fu grip and the wifey wants jewelry so they need to sell, sell, sell.

FL_Conservative's picture

No December 2013 taper, as Bernanke will hold off and let the ugly, fat lady sing when she's ready....IF she's ready.  I still say, like Schiff, that she will expand QE, not rein it in.

Occident Mortal's picture

The taper is coming.

Look at all the clues.

1). Yield curve looks like the damn murderhorn
2). Mega POMO on 19th
3). Fed change over (blame the last guy)
4). Option rollover
5). Right in time for vacuous holiday trading volumes.
6). Budget deal
7). DJI at 2001, 2008 top out resistance level.

Am I the only person making money short selling this??!


Beam Me Up Scotty's picture

Is was all set up for tapering in September and Bernanke pulled out his limp dick.   I bet he still can't find the viagra.  No taper.

pods's picture

lol, no, I sign with little letters, as I was excoriated once on another board for being a "little letter people."


AGoldhamster's picture

Definitely not.

SnP 18xx was achieved (see earlier posts) - so correction now just according to plan.

aVileRat's picture

Not until we see who Yellen's #2 is. Repo tool is a smoke screen to see if the next crash can be mitigated by institutionalizing the Twist over the full spectrum. Since market players (all 80% of them) do not give a shit about duration anymore, adjusting the front end of the curve means nothing for the next market crash. Fed has now officially run out of 'sterilzed' ways of pumping money into the M1. Purchasing the short end is in effect saying the open market desk is now a prop trading group.

Go ahead, think about that one for a min.

Xmas rally was and is all about consumer spending. That's not happening, as per COST this AM. As per JCP & SHLD/HSBC. So for that MOMO we like to call Buster. There is nothing to get him to buy.


A is A's picture

That's what Liesman says so it must be coming...........

NoDebt's picture

If that asshole turns out to be right we're gonna have to pass the hat and take up a collection around here.

Exponere Mendaces's picture

Only way to be hedged. At least with Bitcoin you can bug out at a moments notice. I feel sorry for the ones that are stuck with their dense "stacks".

TheFourthStooge-ing's picture

<-- deer omen
<-- Hindenburg omen

Chuck Norris's picture

"...higher beta muppetry..."

Does it get any more hilarious?

frankTHE COIN's picture

Mmmm...The taste of Venison.

RmcAZ's picture

These tards think there's actually going to be a taper? Hahaha... Just wait til they double QE.

Martial's picture

He's right you know.

Winston Churchill's picture

Rumor has it $85bn would be a reduction from the real figure.

Rainman's picture

Nervous fiat wants to bang the year end close before everybody gets out the door ahead of them. This could get interesting in a musical chair kind of way.

NoDebt's picture

"She is made of iron, sir.  I assure you she can and will sink.  The pumps buy you time only.  Nothing more."

Frozen's picture

This is more like a loosely tied floating island of flotsam, some parts more buoyant than others but still dragging the rest down.  And still mostly made of junk.  It will continue to stay above water, but it aint getting you anywhere fast.  Viva la drift

new game's picture

that word "bang" gets me real nervous...

market le pew's picture

This is not even a correction in the big picture. But I hope that it is a small step towards reality. Apart from that, a bit of volatility should be welcomed by all market participants.

fonzannoon's picture

Yes the taper is back on. Certainly QE will be wound down next year as the data continues to show growth.

In other news sucka ass suckers will continue to be sucka ass suckers

fuu's picture

VeNiSoN bItChEz!

deerhunter's picture

Looks like the trail camera pictures from the woods.  Hope to see a few of those from the tree stand later this week when the wind quits blowing.  Up arrows to the venison comments.

eddiebe's picture

Or they tank it a bit to give cover for next weeks dovish speak.


I love the deer as much as anyone on ZH, but this sighting seems a bit premature. Please don't turn our beloved deer into the Fox News Alert.

css1971's picture

The deer, for 1%.

Is it even 1%? That's like a sneeze.

The worst trader's picture

What no banging the VXX at the close?

disabledvet's picture

that's an indicator for a pull back. also "equities might have to catch down with credit" here. I see more "train wreck" (so to speak) than Titanic. DC is a mess right now and that "sets up nicely" for a smack down. "Deer in headlights" say hello to Mr. Wonderful.

czarangelus's picture

Waiting for the return of reality is worse than waiting for Godot.

papaswamp's picture

If I like my deer, can I keep my deer?

AcidRastaHead's picture

Oh you crazy lovable deer.  We've missed you.  I thought you drowned in the river of liquidity but thankfully you're still alive.

walküre's picture

Ah shucks. I just decided to throw in the towel.

Yours truly,


Panafrican Funktron Robot's picture

$4 billion POMO nut tomorrow, another non-trivial down day would be more significant and deer-warranted.  

BringOnTheAsteroid's picture

Raayyyyyy, the dear is back.

When are we going to learn, when oh when oh when are we going to learn. THERE'S GOING TO BE NO MEANINGFUL TAPER. There will be enough to suck in the shorts before all hell breaks loose to the upside. The CB's have barely started on the path to destruction.