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Stocks Slide To Worst Start To Year Since 2005
US equities converged down to VIX's warnings from the holiday period as for the 3rd day in a row equities dropped. This is the worst start to the year for the S&P 500 since 2005. Equities improved during the European session but top-ticked at the US open, tumbling to 10-day lows by the time Europe closed. A leak higher with a vertical ramp to VWAP in the afternoon gave way to selling in the last hour. Trannies are the worst year-to-date (-2.2% from 2013 close highs). Treasuries gained further today, with yields down 6-8bps on the year. The USD lost ground during the European session then flatlined for the rest of the day (-0.25% on the day). From Friday's close, commodities are ending almost unchanged but all had a very volatile ride today (most notably in gold and silver).
VWAP once again played a key role in S&P 500 futures trading today...(and volume was well above the average of the holiday period)...
Stocks caught down to VIX...
Performance off the 2013 Close highs has been ugly (despite the Bernanke bounce)...
Commodities all seemed to regroup back around unchanged after a majorly volatile day (most notably in the PMs)
The USD's weakness today (-0.25%) all occurred betwee the US open and EU close with it flat otherwise (as POMO started)...
But stocks tracked JPY very closely once again...
Treasuries are tending to trade one way since the start of the year... (but again - it has been a US open to EU close story there also...)
Charts: Bloomberg
Bonus Chart: Lots of odd couplings and uncouplings across asset classes today...
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VIX isn't buying it.
One more POMO and we'll all forget the last three trading days
Wasn't there a POMO today?
Sooo......?? If POMO can't save us.....what can??
This week could determine where stocks close out 2014
"if the S&P doesn't close above 1848 on Wednesday, the market could be in trouble"
http://www.cnbc.com/id/101312600
More QE NOW OR ELSE...
Stocks, bonds? In 2014, think cashSNIP
"The immediate concern: Now that the Fed has started shutting off its spigot in the face of an improving economy, the chances of rising interest rates prompting a selloff in stocks and bonds inevitably increase. Shortly after the Fed ended its two smaller rounds of quantitative easing -- in 2010 and 2011 -- the S&P 500 declined 16% and 19%, respectively. (Bond investors discounted QE's impact then, but lately they've shown they're convinced.)"
in full
http://money.cnn.com/2014/01/06/investing/stocks-bonds.moneymag/
I'm thinking A BIG FALSE FLAG, GOVERNMENT FUNDED, BLACK OP EVENT IS IN THE MAKING for the next leg down! Ready the sheeple and Q the telepromters!!
Quite a punch down in final minutes. Low volume and easy push or something more nefarious? Or a return to fundamentals? Nah.
Also (appeared) spike in volume at the end.
funduhmentals
I still own some stocks, but a lot lower percentage than before. Why do I not own shares of companies as much as I used to?
Because I do not trust companies now (as a shareholder). They appear to be sleazier than ever (OK, the stock market / Wall Street has always been dirty), so much so that I wonder how immense the scale of the frauds are...
I relate Bearing.
Might as well forget due dilligence since the numbers are all cooked.
It's like we've been reduced to trading the headlines.
The insiders ramp stocks up prior to the news and sell on news day.
How to take advantage of this is the question.
Buy. Stawks. NOW.
All this chart porn means nothing compared to the power of the Fed to conjure up trillions to levitate asset prices.
If the NSA can spy on everyone in this world, the Fed can surely levitate a few markets given its infinite printing resources.
What markets are free in the land of the free? Does Congress have any power once it is subject to NSA spying? Does the Supreme Court? At least, there is football tonight. Bread and circuses.....
In other news,
US rules out military aid to Iraqi forces in fight against al-Qaida in FallujaThe Pentagon indicated Monday that the US-built Iraqi security forces are on their own to recapture the western Sunni province of Anbar from al-Qaida fighters, who have taken control of key locations in the desert near the Syrian border.
I thought we were in Afghanistan to fight al-Qaida but in Libya, Syria and now Iraq, al-Qaida are our friends. Do we still blame al-Qaida for 9/11 or we do not bother since everyone knows it was false-flag?
Oh what a tangled web we weave,
When first we practise to deceive!
http://www.theguardian.com/world/2014/jan/06/us-rules-out-aid-iraqi-forces-al-qaida-falluja
3rd POMO day failure, and they haven't actually tapered yet.
So, it will be Yellin that inserts the taper ?
Very true and POMO has actually increased. Very telling for 2014. If you are holding stocks, you might want to cut positions.
Traders (especially the buy n hold dooshbags) had a pretty fantastic 2013. Most Hedge funds did not keep up with the Beta Indices... but so what ... few produced negative returns.
Going into 2014 I would suspect that managers . traders would now start taking some profits and welcoming a nice 5 to 10% correction to be able to buy in at those levels for the inevitable ramp in the Indices going to the 2 nd half of 2014.
Additionally, the market could begin 2014 by testing Yellen and the new Fed... will they untaper the taper if we get a 10% correction? Lotsa market plays on that meme.
It isn't like "traders" have some borg mentality and will collectively sell 5% - 10% just to "buy back in".
It will be the institutions selling the majority of paper because they get the headline economic numbers before the stats get released. This will trigger retail to sell (don't think you aren't retail if you consider yourself a day-trader, you are not special) and will further the selloff.
Smart money sells, dumb money sells, and then we will be looking at stock indecies 20% lower. Meanwhile no one will know where to hold their principle and will scramble from dollars to bonds to gold like crows in the street.
Bitchez need to print moar
INDU off abou 1% from an all time high... Worst start in 8 years? = freak show.
Yellen's on it, just warming up her left thumb for the "Ctrl" and the right index finger for the "P".
The indexes saw Janet Yellen at a distance and it looked as though she had a Pomo beside her.. As they closed in it was all her with pigeons dropping dead from the sky.
Yellen will be tested...and sooner than later