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Stocks Crater Most In Over 4 Months

Tyler Durden's picture




 

For some of the major US equity indices today's plunge was the worst day since August 27th.

All indices are now negative year-to-date once again as the outperforming Dow Transports were smacked over 1.8% from its intraday highs. NASDAQ once again touched green year-to-date early on in the day, then tumbled aggressively. Some of the best post-Taper performing sectors were slammed hard today with builders, financials, and discretionary spanked.  USDJPY 103 was defended heavily but stocks had already lost any connection as correlations broke rather notably. As we noted earlier, short-term bills were in heavy demand (and yields turned negative); Treasury notes and bonds rallied 3-4bps. Early weakness in gold and silver were rapidly dismissed with as PMs surged to fresh one-month highs ($1255 gold) and 2-month highs ($20.47 silver). VIX, after dropping below 12% early on smashed higher to close at 13.6% (following Friday's extreme steep close).

 

Whether this is all Lockhart's fault is questionable - as it seems now that Friday's late ramp was merely the chance for the big boys to exit on the piss poor employment data... it's definitely time for the deer!

 

 

Today's equity market action saws 3 shifts - US open rally, EU Close turning point, Lockhart downtrend...

 

As Stocks and JPY crosses lost their correlation (103 USDJPY was defended aggressively - like 104 Friday)...

 

Post-Taper, equity sectors have massively retraced...

 

As year-to-date equity indices have rapidly deteriorated...

 

VIX dropped back below 12% briefly before being banged back higher...

 

It seems bonds have been on this from the beginning of the year... and today's strength merely extended Friday's gains (drops in yields)...

 

Gold and Silver had their normal slamdown start to the day but by the close were in heavy demand as safe havens were sought...

 

Stocks caught down to credit weakness...

 

Charts: Bloomberg

Bonus Chart: Nikkei is down 1000 points from its 2013 close highs...

 

Bonus Bonus Chart: Why you should be worried about USDJPY (not earnings)... (h/t @Not_Jim_Cramer)

 

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Mon, 01/13/2014 - 17:10 | 4328361 Say What Again
Say What Again's picture

Is this opportunity I've been waiting for to BTFD?

.

p.s. maybe its time for a photo with MANY deer.

Mon, 01/13/2014 - 17:11 | 4328366 BLOTTO
BLOTTO's picture

Someone please keep fanning the fire faster.

.

I dont want to be running in the forest when im old and in a wheelchair...

Mon, 01/13/2014 - 17:11 | 4328368 flacon
flacon's picture

Age 40 will be the new definition of a senior citizen. 

Mon, 01/13/2014 - 17:13 | 4328374 BKbroiler
BKbroiler's picture

That deer should be on the next ZH shirt.

Mon, 01/13/2014 - 17:24 | 4328417 TheLooza
TheLooza's picture

C'mon guys dont be naive.  If you weren't loading up on calls near the close, you havenn't been paying attention for the last year.  Also, mind you, check out the POMO calender....I say this a s brother in arms here.  I loved nothing more than shorting retail momos...but can't/won't do it until the trend is truly broken.

Mon, 01/13/2014 - 17:31 | 4328443 flacon
flacon's picture

Maybe we are in a bear market rally since 1929. ... :P

Mon, 01/13/2014 - 17:57 | 4328517 NoDebt
NoDebt's picture

Paging Fonzannoon.  

Your deer.  As requested.

Mon, 01/13/2014 - 17:58 | 4328523 camaro68ss
camaro68ss's picture

Stocks down = Tappering the tapper = bullish

Mon, 01/13/2014 - 18:04 | 4328533 camaro68ss
camaro68ss's picture

waiting for the back to back deer day. Make it a hat trick

Mon, 01/13/2014 - 18:08 | 4328551 TeamDepends
TeamDepends's picture

Bonus Chart Deer = Head for the hills!!!!

Mon, 01/13/2014 - 18:32 | 4328621 Lewshine
Lewshine's picture

OK, I'll go on record; I don't think you stand a chance in hell to cash those calls for a profit Looza (the irony). At best, you might see a little pop on the open, but the downside is gonna come upon you quickly. This has been a liquidity driven market. Take away the Fed, you take away the cash flow - Smart money knows it. Buffett is on record as holding more cash now than ever in his history in the market. Gude luck (as in Liam Neison's Taken).

Mon, 01/13/2014 - 18:41 | 4328644 TheLooza
TheLooza's picture

of course, you may be right. But there's a non-trivial pattern on Zerohedge of one day deer in the headlight ecstasy faollowed by huge multiday rallies.  I was very guilty of it too. I acknowledge that this might be the time the pattern does not hold, and this may be the first day of an epic crash...but I'm willing to take the risk.

 

I mean come on...Goldman has its weekend article, Lockhart does his thing.  Of course there might be one day validation, but might also be a trap to get some cheaper shares, and to do a little put writing.

 

Fuck if I know.

Mon, 01/13/2014 - 18:53 | 4328676 TeamDepends
TeamDepends's picture

+1 for honesty and liking turtles.

Mon, 01/13/2014 - 17:32 | 4328445 seek
seek's picture

I've been thinking the same thing for a while -- ZH needs a new shirt with the deer. Maybe nothing more than a largish ZH Theta logo in white on the back of a black T, with the deer faded into the upper half of the opening the the theta symbol. Optionally with the tagline "if you're not scared, you haven't been paying attention. www.zerohedge.com"

Mon, 01/13/2014 - 23:16 | 4329514 TheFourthStooge-ing
TheFourthStooge-ing's picture

BTFD - Beware The Fucking Deer

Mon, 01/13/2014 - 17:15 | 4328367 flacon
flacon's picture

Nice.... my portfolio was up 30% today. I took some profits. I bought a small spread position in JPM for earnings tomorrow. 

Mon, 01/13/2014 - 17:49 | 4328493 eclectic syncretist
eclectic syncretist's picture

30% in a day??!!!!  You are overleveraged and will learn the hard way if you don't quit now.  There is no need for it, and you would last longer in Vegas.

Mon, 01/13/2014 - 18:04 | 4328532 flacon
flacon's picture

Puts and calls. I take what I get and try not to give anything back. Day trading, so I hold a position for a matter of minutes to hours, then sell. I hedge with long term puts and calls. This is digital trading, I have enough food to feed my family for 5 - 7 years. 

Mon, 01/13/2014 - 18:07 | 4328548 inhibi
inhibi's picture

I smell some BS in the air...

Mon, 01/13/2014 - 18:20 | 4328583 flacon
flacon's picture

How about this, since 2009 I have converted my entire family to have two or more citizenships, two in N. America and one in Europe. I'm doing the best I can. I no longer live in USSA, sold EVERYTHING and moved. I am living debt-free and have a crazy dog who likes to bite people. .... 

Mon, 01/13/2014 - 21:08 | 4329129 Freddie
Freddie's picture

If true, good for you.   Lucky bastid.

Mon, 01/13/2014 - 17:15 | 4328392 Unprepared
Unprepared's picture

This is once-in-an-eon fire sale to BTFATH*

The last time we saw a 1% bear market, the years were counting backwards to 0 BC. It's a deer-in-headlights day and headless chicken are coming home to roast on the kitchen sink and their shit are hitting the fan splashing against the writing on the wall. Missed the fly by this much ><

 

*while quantities last, limit of 5 packs per family

Mon, 01/13/2014 - 17:36 | 4328459 Surging Chaos
Surging Chaos's picture

I expect a multi-deer day when the circuit breakers trigger.

Mon, 01/13/2014 - 17:10 | 4328364 stant
stant's picture

deer + headlights bitchez

Mon, 01/13/2014 - 17:12 | 4328369 sixsigma cygnus...
sixsigma cygnusatratus's picture

Kudos to ZH + Fonz!

Mon, 01/13/2014 - 17:12 | 4328371 astoriajoe
astoriajoe's picture

Well, I think the lesson from Madoff was that you can't have performance that is tooo consistent if you want to be credible.

Mon, 01/13/2014 - 17:14 | 4328379 Bunker Boy
Bunker Boy's picture

Hi Ho Silver!

Mon, 01/13/2014 - 17:14 | 4328382 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

I'd like this to be the beginning of a real correction, but a 1.5 percent decline on the NASDAQ will probably be seen as a "huge" correction and an excuse to buy the dip. I'll be a little more convinced if we actually move down tomorrow. There was actually a significant recovery in the last 20 mins and even after the close. 

Mon, 01/13/2014 - 17:22 | 4328413 jcaz
jcaz's picture

"Significant"??

Really?

This must be your first down market......

Mon, 01/13/2014 - 19:22 | 4328764 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Actually, you're right. I was in cash for the last crash, and also too busy w/ work to follow the market. I'm in a short etf and doing well as of today, so that's why I'm trying to follow sentiment. I'll probably take some profit but it would be nice to ride a correction down for a few days-weeks. And then buy more gold of course. 

Mon, 01/13/2014 - 20:32 | 4329026 LooseLee
LooseLee's picture

Nah. Just other PINKO COMMIES who think like you. Your days are numbered. Why do you hang around in 'THE LAND OF THE FREE' when you are a COWARD COMMIE at heart?

Mon, 01/13/2014 - 17:15 | 4328387 The worst trader
The worst trader's picture

The party is over? Dam I never got in! Oh well guess I'll have to rich the old fashoned way, hard work and steal from the 1%.

Mon, 01/13/2014 - 19:21 | 4328759 redux2redux
redux2redux's picture

You can marry more money in 5 minutes than you can earn in a lifetime.

Mon, 01/13/2014 - 17:17 | 4328396 Cursive
Cursive's picture

Come on, comrades!  Pull together now!  BernanQE wants you to know that this dip must be bought!

Mon, 01/13/2014 - 17:18 | 4328397 Seasmoke
Seasmoke's picture

665 here we Come !!!

Mon, 01/13/2014 - 17:20 | 4328405 Boston
Boston's picture

It seems bonds have been on this from the beginning of the year... and today's strength merely extended Friday's gains (drops in yields)...

Just as the BAML pieces here on ZH warned about. 

The 10y yield could, even if it bounces in the short-term from here, fall much more. 2.5-2.6% is a very reachable target.

Mon, 01/13/2014 - 17:20 | 4328406 BudFox2012
BudFox2012's picture

What is this red color I keep seeing in market charts mean?  I thought the only color markets could go was green...

Mon, 01/13/2014 - 19:00 | 4328705 stormsailor
stormsailor's picture

yeah, my thinkorswim is broke.   /es actually showing red.  probably rise 40 points overnight for absolutely no reason.

Mon, 01/13/2014 - 17:21 | 4328411 Rising Sun
Rising Sun's picture

The economy is doing just fine.

 

Let's stop all POMO just to confirm.

Mon, 01/13/2014 - 17:22 | 4328412 hugovanderbubble
hugovanderbubble's picture

BTFD is OVA

Now is SENT....Sell each New Top

Mon, 01/13/2014 - 17:22 | 4328414 Make_Mine_A_Double
Make_Mine_A_Double's picture

Oh deer. I put in the sell orders yesterday. All cleared out and into cash today.

Dumb luck on my part, but I've been waiting for this and figured this weekend was good a time as any.

 

 

 

Mon, 01/13/2014 - 17:25 | 4328421 Iam Yue2
Iam Yue2's picture

The multi-asset boys are fucked.  Easy, early year rises are a thing of the past, and they are terrified to get involved, should they be hit by a 10% drop in the market.  Interesting times ahead.

Mon, 01/13/2014 - 17:26 | 4328425 Taint Boil
Taint Boil's picture

 

 

The deer is back ....... KaBoom!

Mon, 01/13/2014 - 17:29 | 4328431 Traderone
Traderone's picture

Anybody else buy at 8.30? I did and i'm still there.

Mon, 01/13/2014 - 17:30 | 4328436 Traderone
Traderone's picture

8.30 Irish time that is.

Mon, 01/13/2014 - 17:37 | 4328463 Surging Chaos
Surging Chaos's picture

Yes, yes, YES! The deer has returned!

Mon, 01/13/2014 - 17:39 | 4328469 Frank N. Beans
Frank N. Beans's picture

Personally I think it's a little premature to bring out the deer in the headlights photo.  Today just appears deer-worthy because we haven't seen a down day like this in months.  Remember when we had 300-point down days?  And quick drops?  Now those were deer-worthy. 

 

Mon, 01/13/2014 - 18:49 | 4328665 lakecity55
lakecity55's picture

The Deer needs to be brought out ever so often for exercise. I'm sure there is a leash on him but we cannot see it because it is dark.

Mon, 01/13/2014 - 17:49 | 4328489 SheepDog-One
SheepDog-One's picture

Leverage on everything up to 50% means it only takes a 2% drop to wipe out most 'investors' completely.

Mon, 01/13/2014 - 17:53 | 4328503 eclectic syncretist
eclectic syncretist's picture

And where will the money go?  Into bonds with the Fed tapering?  Not for long.  It will head for safety, and when bonds aren't even safe, that means hard assets.  Maybe even perversely stimulate an increase in house prices, even though only the banksters and Fedophiles could afford them.  Next up, a renters economy.

Mon, 01/13/2014 - 21:49 | 4329227 MeelionDollerBogus
MeelionDollerBogus's picture

BeanieBabie coinz?

Mon, 01/13/2014 - 21:47 | 4329222 MeelionDollerBogus
MeelionDollerBogus's picture

50x not 50%. 50% is only 2x so a drop of 50% (x 0.5) would be the wipe-out level.

Mon, 01/13/2014 - 17:55 | 4328491 22winmag
Mon, 01/13/2014 - 18:47 | 4328657 lakecity55
lakecity55's picture

Yes, the forecasted Big Hit!

Banksters jumping from windows, jumping in front of a bus, Walther to the head!

Jump, Banksters, Jump!

***

"Tell us again about 'Black Tuesday '14, Granpa!"

Mon, 01/13/2014 - 17:49 | 4328492 U4 eee aaa
U4 eee aaa's picture

Yearly OpEx this week too

Mon, 01/13/2014 - 18:00 | 4328495 Handful of Dust
Handful of Dust's picture

spooky....I guess I feel lucky all my money is tied up in Debt...no need to worry about "the market."

Mon, 01/13/2014 - 18:07 | 4328543 fuu
fuu's picture

VeNiSoN bItChEz!

Mon, 01/13/2014 - 18:21 | 4328589 The Gooch
The Gooch's picture

New Years Eve:

My buddy in the Dakotas was hanging with his new neighbors as they skinned a deer and immediately made a fresh meal from said deer.

I on the other hand, was subjected to the (thoroughly) suburban neighbors enlightening conversation on watching re-runs of "Friends" and just how funny that show was.

WHen I picture that neighbor, that neighbor has a doe-head.

 

Mon, 01/13/2014 - 18:43 | 4328646 fuu
fuu's picture

About 10 years ago I was hanging out in the Chiricahua Mountains in Arizona with some friends. We stayed on the family ranch of a buddy of mine. We did a bit of work like branding cattle, fixing fences, etc to help out while we were there.

As an extra thank you on Christmas Eve the rancher shot a nice buck up the road from us and brought it out to our spot. We cooked venison steaks over a fire under the stars while it snowed.

Best Christmas ever.

Mon, 01/13/2014 - 22:14 | 4329287 Skiprrrdog
Skiprrrdog's picture

There are still people who watch Friends? I guess they have not discovered the 'Midget Porn' channel yet...

Mon, 01/13/2014 - 18:36 | 4328630 lakecity55
lakecity55's picture

The deer is back, bitches!!

Go PMs!

 

Mon, 01/13/2014 - 19:18 | 4328754 thismarketisrigged
thismarketisrigged's picture

i am sure we will here all this bullshit from msm how this drop is great for the market as it needs to correct itself a bit, but of course when it continues to go up day after day, all is good in the economy and the u.s is growing at rapid speed and creating so many more jobs since obama took over.

 

tomm will be interesting, lets see if we can have a -200 pt day tomm.

 

jpm reports tomm, im sure that earnings report will be very honest.

Mon, 01/13/2014 - 19:58 | 4328932 soopy
soopy's picture

'Surging' after hours bitchez

Mon, 01/13/2014 - 22:58 | 4329439 DebtSlaveZombie
DebtSlaveZombie's picture

This has been a fairly normal practice for the last 18 months.  The market rallys for awhile then sells off to the 50DMA.  Nice and healthy and allows for more support to come in.  Then we make new highs and rinse and repeat.  Look at the first chart...its all u need to see.  We might drop another 2% but we will bounce and move higher.  That chart is a beautiful bullish pattern.  So nice.  Then go out and look at gold over the same time period.  This bull has a few years left in it.  Look at 1995 to 1999 charts.  It exploded in the final 3 years.  We are in year 2 of the explosion.  BTFD and be thankful you did.  This market is giving u a gift.  Look at that first chart!!! Holy cow this is very healthy.  We needed this to go higher.  Maybe 1800 to 1810 is the bounce.  But youll get in at a nice price.  S&P 2000 by July 1st.  

Tue, 01/14/2014 - 04:54 | 4330056 kurt
kurt's picture

KaBlamm! Kerpow! THAR SHE BLOWS!!!!!!!!!!!

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