Is This The Chart That Has Small Cap BTFATH-ers Nervous?

Tyler Durden's picture


For the last year, every test below the 50DMA for the Russell 2000 has been met with a cavalcade of BTFD-ers (which then transformed into BTFATH-ers). However, we wonder, does the following longer-term chart suggest this time might just be different?



..."coz if you don't, you're a fucking idiot"...


Unless... it is different this time...



Charts: Bloomberg

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Thu, 12/12/2013 - 13:30 | 4240148 buzzsaw99
buzzsaw99's picture

It's always different this time.

Thu, 12/12/2013 - 13:53 | 4240256 Boris Alatovkrap
Boris Alatovkrap's picture

Always a greater fool... until is not.

Thu, 12/12/2013 - 14:06 | 4240292 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Whatever. Wall Street makes money whether it goes up or down. Just give them your money you damn muppets!!!

Thu, 12/12/2013 - 14:27 | 4240372 Crash Overide
Crash Overide's picture

They literally "make" money... oh sorry, "increase the money supply" but if we do it they call it counterfeiting.

Guess it's all perspective, but I am guessing that if you can make unlimited amounts of anything with minimal energy input that something eventually becomes worthless or really really cheap.

Thu, 12/12/2013 - 14:07 | 4240297 SamAdams
SamAdams's picture

Did someone figure out a way to keep the banks solvent if the FED tapers?  What are our options?  We have that extra cash coming in from ObamaCare tax and we could always raid pensions.  Hmmm, tempting, but not just yet....

Thu, 12/12/2013 - 14:18 | 4240343 DeadFred
DeadFred's picture

I came across a video from a guy the other day with a novel market analysis who makes mention of the future prospects for the Russell. I give his analysis more credibility than the MSM cheerleaders, but is this insider trading?

Thu, 12/12/2013 - 16:30 | 4240396 Diogenes
Diogenes's picture

"I give his analysis more credibility than the MSM cheerleaders, but is this insider trading?"

If by insider you mean he gets advice from the voices in his head.

Thu, 12/12/2013 - 13:34 | 4240157 pragmatic hobo
pragmatic hobo's picture

machines don't get nervous ...

Thu, 12/12/2013 - 13:53 | 4240255 disabledvet
disabledvet's picture

dividends have been rising in this rising interest rate environment. if your company has cash to "sell" then there is a reason to hold the equity. small caps tend to run on technicals and stall out on fundamentals...we've never had much growth out of this collapse other than in credit (meaning leverage) the growth of which has truly been spectacular. a forty percent correction in these "all levered all the time" names would not surprise me. the mega caps have a lot going for them right now because you have ZIRP (at least until Spring) and the biggest oil and energy boom in US history. we also have a technological upgrade cycle (Teslas, cloud computing, distributed energy boom through solar and wind)...pricing other than in Tesla's have really collapsed in these markets btw. that says to me a "deflation scare" still cannot be ruled out and the high fliers (pure beta, bitcoiners, summation effects from trading on the wrong side of the New Normal) hit an air pocket. doesn't look like an absolute replay of 2008 but if could "rhyme."

Thu, 12/12/2013 - 13:33 | 4240159 NIHILIST CIPHER

Newton gave you the answer to this centuries ago.

Thu, 12/12/2013 - 13:58 | 4240268 Boris Alatovkrap
Boris Alatovkrap's picture

Juice Newton?

"Joker ain't only fool who'll do any thing for you"

Thu, 12/12/2013 - 16:56 | 4240893 NoDebt
NoDebt's picture

No.  He obviously means Olivia Newton John.  'Hopelessly Devoted To You'

Thu, 12/12/2013 - 14:10 | 4240306 onelight
onelight's picture

so have tens of thousands of loggers across millennia...timberrr...

Thu, 12/12/2013 - 13:40 | 4240192 giorgioorwell
giorgioorwell's picture

Charts are meaningless in these markets. 

Thu, 12/12/2013 - 13:42 | 4240212 semperfi
semperfi's picture

Vegas style odds would be much more useful

Thu, 12/12/2013 - 13:57 | 4240270 Boris Alatovkrap
Boris Alatovkrap's picture

But, every gambler is like pornoGRAPHy.

Thu, 12/12/2013 - 14:22 | 4240341 Headbanger
Headbanger's picture

Yeah... But I told you last week.. NASTY THIRD WAVE DOWN!

And this is a very minor third wave down of a minor first wave down of a less minor first wave down of a medium first wave down of.....

What a bunch of cheerleaders! 

Thu, 12/12/2013 - 14:24 | 4240340 ThisIsBob
ThisIsBob's picture

Not mine but the chart posted is useless for trading.

Thu, 12/12/2013 - 13:46 | 4240223 Al Huxley
Al Huxley's picture

They just need to turn from BTFATHers to BTFDers.  Or get on board the social media bandwagon - I know it looks crowded, but honest, there's plenty of room if you just pile in on top...  Lets take these PEs to 4 digits!

Thu, 12/12/2013 - 13:47 | 4240229 Al Huxley
Al Huxley's picture

Only sociopathic fuckheads would crash a market right before Christmas - we should be fine into January at least don't you think?

Thu, 12/12/2013 - 13:49 | 4240238 jcaz
jcaz's picture

Oh yeah, all is well, they'd never puke the market now- back up the truck, buy all you can....

Thu, 12/12/2013 - 14:00 | 4240284 Boris Alatovkrap
Boris Alatovkrap's picture

You are think bankster who is worship at alter of satan is caring for Christmas?! No, only question is crash week before or day before. Crash week early, maybe is less present under tree, crash day early, maybe father or retirement candidate is contemplate self-termination. Please check Advent Calendar.

Thu, 12/12/2013 - 14:23 | 4240362 Headbanger
Headbanger's picture

Al... "sociopathic fuckheads" is exactly what we have in the White House now!


Thu, 12/12/2013 - 13:55 | 4240263 BandGap
BandGap's picture

It might be the bst time for them to do this, Al. And besides, you said it - they're fuckheads.

Just settled down for a long winter's nap. 

Thu, 12/12/2013 - 14:01 | 4240281 TrustWho
TrustWho's picture

I do not know when the facade of earnings and MDA trends will fail, but a December crash would be a perfect month for a major unwind. Selling the Santa Claus rally that killed the bull market brought to us by the Wizard of Oz...DADDY Bernanke!!!

Thu, 12/12/2013 - 13:55 | 4240259 whateverittakes
whateverittakes's picture

It is taking trillions of $ in Government deficit spending and FED money printing to keep that chart going. It is pure suicide by the elites if this farce does not end soon....

Thu, 12/12/2013 - 14:08 | 4240305 astoriajoe
astoriajoe's picture

and by 'suicide for the elites' you mean bail-ins and confiscations for the non-elites?

Thu, 12/12/2013 - 14:12 | 4240318 Antifederalist
Antifederalist's picture

i am an old guy.

Educate me.

BTFD.  I get it.

BTFATH-ers?  Not so much.








Thu, 12/12/2013 - 14:20 | 4240351 fooshorter
fooshorter's picture

Buy The Fucking All Time High



Thu, 12/12/2013 - 15:04 | 4240355 Ham-bone
Ham-bone's picture

f'ing A - Buy the f'ing all time high - mf'er lifting off to the f'ing moon as I type this ridicu-f'ing-lus message!!

Follow EUR-JPY is lifting off and markets will follow...up, up, and away for rest of day...copper up while silver smashed...again.  just buy what they want you to buy.

Thu, 12/12/2013 - 15:34 | 4240624 max2205
max2205's picture

If BenYellin is alive. ...btfd bitchezzz

Thu, 12/12/2013 - 14:15 | 4240323 frankTHE COIN
frankTHE COIN's picture

I think even though the Fed has unlimited money to Buy and stabilize a crash, ( and they have circuit breakers to stop the declines speed in equities ),
This thing could crash but you have to be fast to profit.
The Spot month of the S& P and other Futures has no Limit Down or Circuit Breaker.
So if a 1987 ish crash happens and for ex. The Spot month is 6000 points lower in a half hour, but the back months and Circuit Breaker levels are higher, there's a good chance that Puts will price in the Spot month. A fortune will be there briefly. In that case you must take profits quick and look for other quick opportunities to Short again.

Thu, 12/12/2013 - 14:24 | 4240364 Ham-bone
Ham-bone's picture

Frank said "short"...haven't heard that word since '09.  you forgot your sarc tags around going "short"...good one.

Thu, 12/12/2013 - 14:33 | 4240395 frankTHE COIN
frankTHE COIN's picture

An example Similar to this, but obviously not the same thing, was when NetFlix fell $100 in one day weeks ago.
I looked at the options that were $ 90.00 away from yesterday's closing price and they had increased in value from$ 2.00 to an astronomical amount. I calculated at that time that if someone had 1000 of those puts from the day before they, at that , moment was up $ 1.3 million with expiration 2 days to go.
Not an exact apples to apples comparison but this happens somewhere in all crashes. Be ready.

Thu, 12/12/2013 - 14:22 | 4240348 joego1
joego1's picture

Trust us! Really! the water is fine!

Thu, 12/12/2013 - 14:28 | 4240379 Fuh Querada
Fuh Querada's picture

Friggin' moving averages again - just commented on another thread - complete bullshit.

Which one? simple moving average, geometric moving average, exponential moving average or linearly weighted moving average? 

An why 50 days? Why not 46 days, 5 hours and 3 minutes?

Thu, 12/12/2013 - 14:38 | 4240413 Diogenes
Diogenes's picture

You can have faith in the Russell 2000 because 90% of the stocks are above average. Just look at the chart.

Thu, 12/12/2013 - 16:54 | 4240903 NoDebt
NoDebt's picture

Just like everyone's children.  They're all above average.

Thu, 12/12/2013 - 14:44 | 4240424 Yukajub
Yukajub's picture

I always wondered - Is it valid to put a linear line on a logrithmic scale?


Thu, 12/12/2013 - 15:07 | 4240526 orangegeek
orangegeek's picture

S&P500 hourly has broken channel support - not that significant


What is significant is that yesterday's down move include a rise in volume - validating the sell off.


Not much follow through to the downside today, but no boomerang move up either.


Q4 results are coming soon - expect all results to be adjusted - and all central banks to be buying anything that moves - much like the last five years.

Thu, 12/12/2013 - 16:07 | 4240718 lasvegaspersona
lasvegaspersona's picture

Buy gold bullion and Chill.

This 'market' is insane and those trying to explain it only sound sillier by the day.

Soon it will be over. When we look back we'll laugh at all the silliness, except for the part about death, destruction and catastrophe.

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