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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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.

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...

flacon's picture

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

BKbroiler's picture

That deer should be on the next ZH shirt.

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.

flacon's picture

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

NoDebt's picture

Paging Fonzannoon.  

Your deer.  As requested.

camaro68ss's picture

Stocks down = Tappering the tapper = bullish

camaro68ss's picture

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

TeamDepends's picture

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

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).

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.

TeamDepends's picture

+1 for honesty and liking turtles.

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."

TheFourthStooge-ing's picture

BTFD - Beware The Fucking Deer

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. 

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.

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. 

inhibi's picture

I smell some BS in the air...

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. .... 

Freddie's picture

If true, good for you.   Lucky bastid.

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

Surging Chaos's picture

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

stant's picture

deer + headlights bitchez

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.

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. 

jcaz's picture



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

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. 

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?

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%.

redux2redux's picture

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

Cursive's picture

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

Seasmoke's picture

665 here we Come !!!

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.

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...

stormsailor's picture

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

Rising Sun's picture

The economy is doing just fine.


Let's stop all POMO just to confirm.

hugovanderbubble's picture


Now is SENT....Sell each New Top

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.




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.

Taint Boil's picture



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

Traderone's picture

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

Traderone's picture

8.30 Irish time that is.

Surging Chaos's picture

Yes, yes, YES! The deer has returned!

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. 


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.

SheepDog-One's picture

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

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.