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Stocks Have Worst Start To Year Since 2008

Tyler Durden's picture





 

Despite the best efforts of 330RAMP CAPITAL, US equity indices ended the first trading day of the year with the biggest loss (on that day) since 2008. Led by weakness in the high-beta indices as Trannies tumbled their most in 4 months and the S&P's biggest daily downswing in over 3 weeks. On a side-note, gas prices have never been this high on the first day of the year. VIX closed higher once again as stocks began to catch down to it's recent warnings. Bonds rallied from the open this morning (with 10Y 6bps lower in yield from its opening print) with 10Y back under 3%. EUR weakness drove the USD higher (but JPY strength weighed on stocks). The biggest moves appeared in commodities with gold and silver up nicely and WTI crude down hard... on, and TWTR was up over 6%!

 

 

Gas prices have never been higher on the first day of the year...

 

Stocks were spanked from the panic-buying highs of New Year's Eve...Notably, the major selling pressure ended when Europe closed. Did we really see a rotation from US equities into European bonds?

 

So buy TWTR you idiot!!!

 

VIX pushed higher still and stocks began to catch down...

 

Despite Treasury strength, Utilities are actually the worst performer off the highs of New Year's Eve...

 

Which, perhaps most interestingly, means Utilities are now unchanged from the Taper...

 

Treasuries rallied from the get-go...

 

But commodities were the most actuve space today with Gold and silver surging and oil plunging... Gold's best day in 10 weeks; oil's worst day in 13 months

 

 

and FX markets have had quite a week but it seems the EUR repatriation filled its year-end liquidity needs and is now unwinding (on European bond's best day in over a year!!)

 

Charts: Bloomberg

Bonus Chart: Since 2000, there has now been 7 years with a negative first day. Of the previous 6, half ended the year with losses (-10.3%, -13%, and -38.5%)... will 2014 be any different? (h/t @Not_Jim_Cramer)

 


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Thu, 01/02/2014 - 17:15 | Link to Comment Dr. Engali
Dr. Engali's picture

Profit taking. BTFD..... When the "market is down 1000 + points in a trading session, then you you get my attention.

Thu, 01/02/2014 - 17:18 | Link to Comment The man with po...
The man with pointy horns's picture

Profit skimming. If everyone tried to 'profit' their would be no profits left.

Thu, 01/02/2014 - 17:16 | Link to Comment Soul Glow
Soul Glow's picture

Gold bitchez

Thu, 01/02/2014 - 20:10 | Link to Comment Lets Buy The Dip
Lets Buy The Dip's picture

see how you got +6 in here quickly. 

Its simple. the market will go up this year, but GOLD MIGHT BE THE PLACE YOU REALLY WANT TO BE. 

GOLD CHART YOU NEED TO LOOK AT => http://bit.ly/1arJATL

It seems, and I am taking a guess is that GOLD might be where you want to be in 2014, MONTHLY, WEEKLY, daily all starting to turn. Last time this happen OMG, we shot up like a gyfox night.

Thu, 01/02/2014 - 18:10 | Link to Comment negative rates
negative rates's picture

Can't be done any  more, stop loss triggers a hault, only way is up wit ur 1000.

Thu, 01/02/2014 - 22:00 | Link to Comment Cattender
Cattender's picture

yes i agree profit taking today..

Thu, 01/02/2014 - 17:17 | Link to Comment The man with po...
The man with pointy horns's picture

Wake me when the S&P 500 moves below its 50 DMA or declines more than 20%.

Thu, 01/02/2014 - 17:26 | Link to Comment Mr Pink
Mr Pink's picture

I predict that today is the last down day for stocks in 2014!

Thu, 01/02/2014 - 17:47 | Link to Comment aVileRat
aVileRat's picture

Nah, you got Planet Yellen next week on the 8th. And the magical payroll numbers.

Market trolling the 'traders almanac' momo players. No Fed today or tomorrow means morning moves really kink the algos. Today was likely one of the only days  we will see what the 'natural' market is like. The slam oil & tech trade is old as 8bit as speculators need to get out before the mid-month rollover. See what next week brings, remember Tokyo is offline and China starts their month long party next week.

If T holds 300bps or gets to 350bps, then we will start to see some serious shit. 350 to 400 is when the floaters/Lite-cov's start to trigger rate resets. Highyield is not pricing in 880 right now. Of course this is when we hit the time warp back to 1979. 

 

 

Thu, 01/02/2014 - 18:30 | Link to Comment fuu
fuu's picture

NY Fed sucked out $87B in liquidity today.

Thu, 01/02/2014 - 17:18 | Link to Comment Rising Sun
Rising Sun's picture

BTFD!!!!

 

BTF TWTR!!!!

 

50M on FEWD STAMPZ - fuck it - bullish for 2014

Thu, 01/02/2014 - 17:24 | Link to Comment HUGE_Gamma
HUGE_Gamma's picture

lifetime buying opportunity here folks.. the low of the year is in

Thu, 01/02/2014 - 17:22 | Link to Comment stutes33
stutes33's picture

OMG!!!!!!

Thu, 01/02/2014 - 17:29 | Link to Comment Rainman
Rainman's picture

Thanx...bonus chart means coin flip to me.

Thu, 01/02/2014 - 17:30 | Link to Comment walküre
walküre's picture

January is chock-a-block filled with POMO days. Unless they're changing the script, this is not a shorting opportunity.

Oil & energy down, gold and miners up. I've seen this movie over and over and over again.

Thu, 01/02/2014 - 18:36 | Link to Comment Tenshin Headache
Tenshin Headache's picture

The debt ceiling is not likely to be an issue either. The Republicans will roll over on that and focus on Obamacare in connection with the fall elections.

Thu, 01/02/2014 - 20:57 | Link to Comment Mad Mohel
Mad Mohel's picture

Good, let those fuckers roll over all the way off the cliff.

Thu, 01/02/2014 - 17:32 | Link to Comment NOTaREALmerican
NOTaREALmerican's picture

Come on,  this is just "investors" taking "profits".   

I'm predicting 2014 will be the best year EVER, unless a black swan poops on the party. 

No black swans,  the party roars.

Thu, 01/02/2014 - 17:38 | Link to Comment walküre
walküre's picture

You've obviously paid attention to the Volksempfänger and the Fuehrer's "Durchhalteparolen".

2014 will be better at every front! The future is so bright you gotta wear shades!

Thu, 01/02/2014 - 17:35 | Link to Comment smcapmachine
smcapmachine's picture

even a broken clock is right twice a day.

Thu, 01/02/2014 - 17:57 | Link to Comment Bobbyrib
Bobbyrib's picture

Not if it's digital.

Thu, 01/02/2014 - 17:39 | Link to Comment yogibear
yogibear's picture

No problem Wiliiam Dudley, Charlie Evans and QEen Yellen will push some buttons to get the buying going again. 

Any bears left, beware.

Should have changed my ID from Yogibear to Yogibull.

Thu, 01/02/2014 - 17:39 | Link to Comment yogibear
yogibear's picture

Buy the dips. It's been making everyone filthy rich.

Thu, 01/02/2014 - 17:59 | Link to Comment texas sandman
texas sandman's picture

Hey, where did my e*trade BTFATH icon go.????

Thu, 01/02/2014 - 18:30 | Link to Comment PRO-HUMAN
PRO-HUMAN's picture

Utilities weak 'cause of reduced demand for electrical power in a weak economy - sad.

Thu, 01/02/2014 - 18:30 | Link to Comment starman
starman's picture

this "market"will correct in 3-5 months! there is no upside left!

Thu, 01/02/2014 - 18:32 | Link to Comment Tenshin Headache
Tenshin Headache's picture

It's always a good time to buy housing and stocks.

Thu, 01/02/2014 - 18:44 | Link to Comment disabledvet
disabledvet's picture

It's "treasuries bid from the Getco" and "there are numerators" (equities) and then there are DENOMinators (treasuries/debt in general.) http://www.youtube.com/watch?v=zAaRlTrSNcE of course there is the whole "he saved from your burning house douche bag" thingy...never let logic dictate a quality vengeful moment tho! what the phuck does "getting even" have to do with "balance" anyways? did anyone even consult with the Big Buddha on this one? http://www.youtube.com/watch?v=u7ktR9tZH1M now say hi to this guy: http://www.google.com/imgres?newwindow=1&sa=X&biw=1296&bih=521&tbm=isch&...

Thu, 01/02/2014 - 18:50 | Link to Comment thismarketisrigged
thismarketisrigged's picture

its so funny how they say that the reason for todays ''sell off'' ( ya big sell off, dow lost a whopping 0.82 percent) s&p 0.89 and nasdaq 0.80 percent) was due to tax selling. my fucking ass.

 

i mean technically every time the market goes up its because more liquidity flows in than out and vice versa on down days, but there was absolutely no selling in december, and i highly doubt every big market mover hedge fund called each other up and said '' hey lets all sell jan 2nd, as is no one wanted to sell for tax purposes in december like last year.

 

also, its funny how they make such a big deal about last years rally on the 1st trading day of the year. what these fuckers do not mention is, it had nothing to do with fundementals, it had everything to do with the bullshit fiscal cliff shit that was made into a much bigger deal than it had to be, and therefore algos across the globe bidded stocks up like it was 1999.

 

hopefully today was the 1st of many many many triple digit loss days on wall st.

Thu, 01/02/2014 - 19:16 | Link to Comment LetsDoThisAlready
LetsDoThisAlready's picture

Hey guys! New guy here, I have been reading Zero Hedge for a couple of years and decided to make an account so I can ask you guys a couple things and comment here and there. 

My first question is...Has anyone seen a current chart with the 1929 DJIA and todays DJIA on the same chart but updated within the last couple days? McClellan Financial Publications has this same chart but it's a few week old. If there is any merit behind the McClellan chart we could see a significant downside soon, and I hope so...

LetsDoThisAlready

Thu, 01/02/2014 - 19:28 | Link to Comment bugs_
bugs_'s picture

an AFC team starting to look right for the super bowl indicator

that combined with the D.C.-P.C. indicator says Kansas City Chiefs

ymmv

Fri, 01/03/2014 - 05:43 | Link to Comment marlene72
marlene72's picture

tapering, rising rates,  should be bad for stocks ...added that the dollar has started the year strong and will continue to do so, which will hurt u.s stock earnings on an international level..can't see an upside from here apart from momentum and dillusion...

Fri, 01/03/2014 - 08:24 | Link to Comment globozart
globozart's picture

it is always the most simple reason. Sorry, but I am invested, that's why.

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