Safe-Havens Sought As Stocks Stumble To Worst Run In 4 Months

Tyler Durden's picture


The small-cap-dominated Russell 2000 fell for the 2nd week in a row for its worst performance in 4 months (though bounced modestly off its 50DMA today). Stocks traded in a relatively tight range today - swinging around VWAP - following their only driver - JPY crosses, most of the day. NASDAQ 4000 was rescued to ensure the headline-writers do not panic. Treasuries were flat to modestly better on the day but end the week mixed with 30Y -1bp and 5Y +5bps - collapsing the term structure to 6 week lows. Precious metals bounced to end the week +1%, which with the USD closing unchanged on the week, made them the outperformer across asset classes. VIX closed higher for the 4th day in a row (with the curve now its flattest in 28 months).


The S&P 500 is down 4 days in a row for the biggest drop in over 2 months and lowest close in a month but today was a VWAP dance...


Aside from a mid-afternoon, seemingly vol-driven dump and pump, stocks hugged VWAP and the flatline today (with Russell modestly outperforming and NASDAQ underperforming)...


Gold and Silver were bid today (as WTI slipped)...


FX markets were volatile but JPY strength today dragged the USD back to unchanged on the week...


VIX closed at 2 month highs and with short term risk the highest relative to medium term risk since August 2011...


With protection well bid into the close..


The Treasury term structure has flattened dramatically in the last week or so... to 6-week lows (and critical support)...


as it appears the bond market's "belief" in the recovery is fading...


Charts Bloomberg

Bonus Chart: The Nikkei and The Dow are fighting it out down here...

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Fri, 12/13/2013 - 17:10 | 4244581 yrad
yrad's picture




It is simply that easy...

Fri, 12/13/2013 - 17:33 | 4244696 Max Damage
Max Damage's picture

Yeah and they can then use it to push twatter upto $100 next week!!!!

Fri, 12/13/2013 - 17:59 | 4244793 LongBalls
LongBalls's picture

Exactly. This is nothing but an attempt to make some room for the end of year run. Don't forget. It's end of year ramp time boys and girls!

Fri, 12/13/2013 - 18:01 | 4244800 fonestar
fonestar's picture

The only "safe haven" left is in Bitcoin.


Sat, 12/14/2013 - 06:20 | 4246146 Nothing but the...
Nothing but the truth.'s picture

PM's my friend are the only safe haven - PM's.

Fri, 12/13/2013 - 17:38 | 4244722 AngelEyes00
AngelEyes00's picture

Stocks are dropping because they think big Daddy is going to take away some of their allowance to drive this bubble ever higher into the stratosphere.   

Fri, 12/13/2013 - 18:07 | 4244825 Exponere Mendaces
Exponere Mendaces's picture

You just know they'll soft-pedal on the "Taper" talk again to get the green bar they want. How many times is it by now?

Fri, 12/13/2013 - 17:11 | 4244584 666
666's picture

I'm bored with the new norm. Can't we have something more exciting like another crash?

Fri, 12/13/2013 - 17:40 | 4244593 CounterPartyVice
CounterPartyVice's picture

Where's safe-heaven when monetary base goes parabolic and derivatives, leverage and lies just keep everything going in the direction chosen by TPTB?

Where's safe-heaven when failing is no longer permitted (TBTF)? Do we even need a safe heaven?

Where's safe-heaven when the gov write confiscation provisions into law?

Bear trap.


Fri, 12/13/2013 - 17:13 | 4244597 moneybots
moneybots's picture

"Safe-Havens Sought As Stocks Stumble To Worst Run In 4 Months"


"Russell 2000 fell for the 2nd week in a row for its worst performance in 4 month"

If you bought the R2K in 2009, you are in a safe haven, up far more than those on fixed income, who wear many hats.

Fri, 12/13/2013 - 17:13 | 4244612 Non Passaran
Non Passaran's picture

Yeah gold and silver were bid nicely towards the close. I'm hoping/guessing that fear is kicking in and PMs are starting to diverge from stawks.

This week PM miners behaved better compared to before, and even diverged from say SPX.

Fri, 12/13/2013 - 17:18 | 4244628 Iam Yue2
Iam Yue2's picture

Anyone seen......Hugh know who..

Fri, 12/13/2013 - 17:21 | 4244644 greatbeard
greatbeard's picture

I thought a hobby farm was a safe haven.



Fri, 12/13/2013 - 17:28 | 4244682 toe
toe's picture

dont be fooled, fomc next week, no taper, sp's back to 1800

Fri, 12/13/2013 - 17:32 | 4244692 falak pema
falak pema's picture

What happened to Jack n his beanstalk...keep calm...2014 BAnner year! 

Fri, 12/13/2013 - 17:51 | 4244757 Yen Cross
Yen Cross's picture

      It was obvious that the taper wasn't priced into the markets when the usd continued to sell off thru Thursday. It looked like the textbook get long usd after the Fed. announces "no taper" next week. (Most would think the usd would sell off on a no taper decision.)

     Actually, the spike in the markets from extended liquidity would cause the usd to strengthen. (usd/jpy) risk leading the way. I'm not sure what to expect next week, and I suspect the recent usd strength is due to traders moving into cash ahead of the Fed. Bonds were marginally lower in yield, so I suspect a long dollar trade into the Fed. is a reasonable play.

Fri, 12/13/2013 - 18:00 | 4244785 HUGE_Gamma
HUGE_Gamma's picture

BONUS CHART!!! everybody LOVES the bonus chart!!

Fri, 12/13/2013 - 18:00 | 4244789 The Heart
The Heart's picture


Fri, 12/13/2013 - 19:27 | 4245055 Al Huxley
Al Huxley's picture

Safe havens like TWTR (+6.63%) and FB (+2.87%) LOL - actually the biggest red flag for this market is TWTR's vertical ascent over the past 5 days.  That's beyond even .com idiocy - they're pumping twitter like an OTC pink sheet special.

Fri, 12/13/2013 - 19:56 | 4245176 22winmag
22winmag's picture

Don't worry... there will be one more upward thrust until that roughly January 14th tipping point illustrated below.



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