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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wee-weed up's picture



Don't worry...

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

The MOMO will be back on.

BLOTTO's picture

Someone fan the fire faster, im getting old.

InjectTheVenom's picture

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

flacon's picture

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

maskone909's picture

Why is that? Mnot like retail investors exist anymore.

Occident Mortal's picture


Not a conspiracy.


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

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.

LetThemEatRand's picture

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

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.

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. 

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.

firstdivision's picture

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

cora's picture

oil and 10 year mostly unaffected.

JPM Hater001's picture

Yes but I hear widows and children hit hardest.

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.

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.

El Oregonian's picture

It only gets bitter from here.

Obchelli's picture

Will be up by 5 points in the morning

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

LooseLee's picture

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

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?

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.

peter4805's picture

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

TheBoyPlunger's picture

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

Aknownymouse's picture

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

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.

takeaction's picture

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

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."

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!

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

Number 156's picture

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

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...

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.""

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.

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.

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!

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.

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.... 

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.

BullyBearish's picture

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

Godisanhftbot's picture

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

stilettos's picture

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

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

stocksystm's picture

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

Clowns on Acid's picture

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

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?

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.