S&P Futures, Nikkei Slide On Large Block Trade

Tyler Durden's picture


Just after 10pm Eastern, a big block in the S&P futures, over 10k contracts, was dumped in the very thin Sunday night tape, sending the complex lower by over 10 points, and after opening at 1768.5, ES dumped as low at 1754 in a matter of seconds, before recovering some of the losses to 1760 (1754 just happens to be perfectly the 50-day-moving average for the March 2014 futures contract). The Nikkei was hit concurrently by correlation algos impacted by the same downdraft, which also pinged the various JPY pairs lower, if leaving the EUR largely untouched. Needless to say there was no news of note to prompt this move, which appears to have been either a partial fat finger, or someone trying to exit the market in a hurry ahead of next week's FOMC festivities.


driving ES perfectly down to its 50DMA...


Nikkei likewise dropped:

In the meantime, the 10 Year is not exactly rushing for the exits:

If a reason for the drop manifests itself, we will update this post, in the meantime, we expect Overnight Ramp Capital to arrive promptly or else confidence in central-planning may take a hit ahead of the Wednesday Taperish FOMC, and Thursday's double POMO.

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Sun, 12/15/2013 - 23:59 | 4249622 wee-weed up
wee-weed up's picture



Don't worry...

On Wed, when the Fed announces No Taper...

The MOMO will be back on.

Mon, 12/16/2013 - 00:04 | 4249634 BLOTTO
BLOTTO's picture

Someone fan the fire faster, im getting old.

Mon, 12/16/2013 - 00:40 | 4249698 InjectTheVenom
InjectTheVenom's picture

If you like your block trade , you can keep your block trade.  Period. 

Mon, 12/16/2013 - 01:13 | 4249732 flacon
flacon's picture

It's inconcievable that markets will be red for Christmas.

Mon, 12/16/2013 - 01:28 | 4249751 maskone909
maskone909's picture

Why is that? Mnot like retail investors exist anymore.

Mon, 12/16/2013 - 04:47 | 4249901 Occident Mortal
Occident Mortal's picture


Not a conspiracy.


Someone just needed $900m as it's only one week till Xmas.

Mon, 12/16/2013 - 05:53 | 4249939 Manthong
Mon, 12/16/2013 - 00:05 | 4249636 kliguy38
kliguy38's picture

precisely ...... only "one trader" makes that move in thin overnite trading.......its the same one that dumps gold contracts like that.......so......watch out.

Mon, 12/16/2013 - 01:13 | 4249733 LetThemEatRand
LetThemEatRand's picture

Head fake, head and shoulders, or balls deep no lube?  It's anyone's guess.

Mon, 12/16/2013 - 01:28 | 4249748 Diogenes
Diogenes's picture

Reminds me of the way they used to ramp up the S&P by buying large blocks of options in thin after hours trading back in 2009 - 2010 only in reverse.

Are the big boys pulling a bear raid? If the same thing keeps happening I don't know what else to think.

Mon, 12/16/2013 - 00:15 | 4249657 indygo55
indygo55's picture

Banks slamming it trying to get in a little lower before the non-taper talk coming up, which they and their ilk know all about. 

Mon, 12/16/2013 - 00:40 | 4249697 Rathmullan
Rathmullan's picture

No taper till January. So the crooks will play the December taper tease for all it's worth. Wherever the stock market peak is this month is likely to become a 15, possibly 20, year peak.

Mon, 12/16/2013 - 06:53 | 4249969 firstdivision
firstdivision's picture

Far quicker than by Wednesday, up 15 pts from this slide now. Gotta love coordinated manipulation.

Mon, 12/16/2013 - 00:00 | 4249627 cora
cora's picture

oil and 10 year mostly unaffected.

Mon, 12/16/2013 - 00:04 | 4249639 JPM Hater001
JPM Hater001's picture

Yes but I hear widows and children hit hardest.

Mon, 12/16/2013 - 01:28 | 4249747 LetThemEatRand
LetThemEatRand's picture

Fuck man.  Don't excite Krugman like that.  He thought you said windows and children.   Now he's going to have to call the Bernanke and cancel his long order.

Mon, 12/16/2013 - 00:11 | 4249654 TheBoyPlunger
TheBoyPlunger's picture

Wti crude doesn't have much support until $94 so it should be interesting to watch if the /ES really starts rolling over.

Mon, 12/16/2013 - 00:00 | 4249631 El Oregonian
El Oregonian's picture

It only gets bitter from here.

Mon, 12/16/2013 - 00:34 | 4249691 Possible Impact
Possible Impact's picture

...to coin a phrase.

Mon, 12/16/2013 - 00:04 | 4249640 Obchelli
Obchelli's picture

Will be up by 5 points in the morning

Mon, 12/16/2013 - 07:13 | 4249979 Obchelli
Obchelli's picture

Didn't I f**n tell you?

One who gave me negative comment? 

You realy underestimate FED's manipulative power. they jus demonstrated they are in full controll

Mon, 12/16/2013 - 09:09 | 4250085 LooseLee
LooseLee's picture

They only have power over other Communists and Soul-less cowards...

Mon, 12/16/2013 - 00:07 | 4249642 jonjon831983
jonjon831983's picture

"VIX Trader Buys $5.1 Million in Calls to Bet on 50% Increase" - Dec 12, 2013 4:55 PM ET



Another big VIX bet? Maybe 3rd time is the charm?

Mon, 12/16/2013 - 00:21 | 4249669 Seize Mars
Seize Mars's picture

I know it seems like a big bet but it really isn't. For a manipulator, the most efficient way to move a market is using "delta one" instruments, i.e. futures or some kind of swap.

The VIX option trades are probably just a big hedger.

Mon, 12/16/2013 - 00:06 | 4249644 peter4805
peter4805's picture

Oops... someone made a mistake.. they meant to press the button that says GLD.

Mon, 12/16/2013 - 00:09 | 4249647 TheBoyPlunger
TheBoyPlunger's picture

But But CNBC assured us there was a Santa Claus rally coming !!

Mon, 12/16/2013 - 00:14 | 4249659 Obchelli
Obchelli's picture

Who said it won't?

Mon, 12/16/2013 - 00:15 | 4249660 Aknownymouse
Aknownymouse's picture

I thought the dump happened when the Hilsy article came out at 10:18

Mon, 12/16/2013 - 00:18 | 4249662 Seize Mars
Seize Mars's picture

Sorry, a bit OT, but I came across this:


The most recent school shooting in Colorado had (at least) two different  "active shooter drills" going on that day.

I. Shit. You. Not.

Mon, 12/16/2013 - 01:29 | 4249753 takeaction
takeaction's picture

Thanks for that....it just keeps getting deeper and deeper.....Wow.

Mon, 12/16/2013 - 02:09 | 4249789 Lore
Lore's picture

My dinner companion this evening joked facetiously that something like this would surface.  LO AND BEHOLD!

Suppose the same BS will emerge when the riots start:  "CROWD CONTROL EXERCISES."

Mon, 12/16/2013 - 00:17 | 4249664 ChaosEquilibrium
ChaosEquilibrium's picture

TANKAN= "No Japanese increase in QE"?!?!


The WORLD's survival in now dependent upon the ECB implementing QE........HOLY FUCK...WE ARE SCREWED....RUN FOR YOUR LIVES....to where?....it is not safe ANYWHERE!!!


Oh relax....Draghis wil do 'whatever it takes'!!


Behold.....THE FINAL ACT!

Mon, 12/16/2013 - 00:20 | 4249666 stant
stant's picture

after the imf called out zero hedge on their own their tax ideas. the algos are now trading off of post on zero hedge, which is fucku, skrewu,and the south shall rise again

Mon, 12/16/2013 - 00:48 | 4249688 Number 156
Number 156's picture

That would be fun if true.
ZH - "Fed Votes for Taper, QE to End!" Then sit back and watch..

Mon, 12/16/2013 - 00:28 | 4249678 lolmao500
lolmao500's picture

That's because the propaganda to take the Saudi Oil has begun....


The Saudis deny any role in 9/11, but the CIA in one memo reportedly found “incontrovertible evidence” that Saudi government officials — not just wealthy Saudi hardliners, but high-level diplomats and intelligence officers employed by the kingdom — helped the hijackers both financially and logistically. The intelligence files cited in the report directly implicate the Saudi embassy in Washington and consulate in Los Angeles in the attacks, making 9/11 not just an act of terrorism, but an act of war.

Since you know, Saudi Arabia is thinking about selling oil in Yuan instead of dollars...

Mon, 12/16/2013 - 00:47 | 4249701 jonjon831983
jonjon831983's picture

Hm coincidentally, saw this a couple days ago:


"9/11 Link To Saudi Arabia Is Topic Of 28 Redacted Pages In Government Report; Congressmen Push For Release"



""I was absolutely shocked by what I read," Jones told International Business Times. "What was so surprising was that those whom we thought we could trust really disappointed me. I cannot go into it any more than that. I had to sign an oath that what I read had to remain confidential. But the information I read disappointed me greatly.""

Mon, 12/16/2013 - 00:30 | 4249683 Number 156
Number 156's picture

I bet it will recover, only to drop again further and just as violent, and pull a few suckers down with it.

Stay away.

Mon, 12/16/2013 - 00:49 | 4249704 chump666
chump666's picture

USD is selling bouncing along the Fed's gustov line.  China data was weak, AUD (China proxy is racing to the 88 handle) and bonds are done.  DXY and USD forwards are pointing to no taper, in fact Asia may dump the USD year end.

The player that was trying to hustle the VIX for a santa rally may be very disappointed.

Mon, 12/16/2013 - 01:13 | 4249736 HaroldWang
HaroldWang's picture

Just moving it lower so they can be "surprised" be a no taper on Wed and the mkt soars to test ATH before EOY. Party on, Santa!

Mon, 12/16/2013 - 01:39 | 4249762 John McCloy
John McCloy's picture

This may not be how it all ends but eventually it will be...the bids and the stock market will just go away one day in the near future.
If fundamentals mattered we would not need have this conversation between forward guidance , oil prices, endless QE diminishing returns but likely I'm gonna chalk this up to Fed Meeting scare tactics for Wednesday.. Financial blackmail and ensuing the endless thievery from savers continues citing "market conditions"
The 10 year break 3% post meeting and it's ball game. There will be no taper and the algo elevator will continue sadly. Anyway hold me tight FAZ because when this ponzi ends were cashing in like never before because TARP 2 will never pass.

Mon, 12/16/2013 - 01:41 | 4249766 TheRideNeverEnds
TheRideNeverEnds's picture

Don't worry, only a few more hours till the FED trade desk opens for business and the POMO ramp kicks in, just buy the dip.


I am sure the FED will tell you when its the right time to sell.... 

Mon, 12/16/2013 - 02:16 | 4249796 Number 156
Number 156's picture

If you buy the dip, buy the dip, but beware, no one knows when the cliff dive resumes and one can find himself standing there all alone when everyone else made a quick exit. 

Dont linger.

Mon, 12/16/2013 - 01:57 | 4249774 BullyBearish
BullyBearish's picture

Old, successful trader once said, "When I want to buy $100Million, I first sell $50Million."

Mon, 12/16/2013 - 02:23 | 4249806 Godisanhftbot
Godisanhftbot's picture

nah, that would be cheating, nobody cheats, 'specially millionaires.

Mon, 12/16/2013 - 01:59 | 4249782 stilettos
stilettos's picture

I know what happened, by the way....

I can't give details, but it was a bad bluff.

Mon, 12/16/2013 - 02:10 | 4249792 Lore
Lore's picture

Spill, or I may cry!

Mon, 12/16/2013 - 02:15 | 4249794 stocksystm
stocksystm's picture

This will crash into year-end as speculators scramble to preserve the tidy gains achieved this year.

Mon, 12/16/2013 - 02:22 | 4249803 Clowns on Acid
Clowns on Acid's picture

China just testing the mettle of overnight S&P and correlations with Nikkei.

Mon, 12/16/2013 - 02:40 | 4249816 Colonel Klink
Colonel Klink's picture

Coinkydink the House of Sauds/US relationship showing cracks now that papa Bush is about to kick off and Pa Saud is on life support?

Mon, 12/16/2013 - 04:12 | 4249880 q99x2
q99x2's picture

Put them in prison. Waterboard them. Don't let them die.

On the bright side Cheney is back to being human. He finally got a heart.

From who is the question.

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