Dow Drops To One-Month Lows

Tyler Durden's picture


Stock futures have been fading since China's PMI missed expectations but this weakness, we suspect, is more about the BoJ's somewhat less dovish comments last night - "as long as steady progress is being made toward the 2% target, we do not see a need for additional monetary accommodation." All US indices are tumbling this morning with the Dow now at its lowest level in over a month.



While there is slowing China growth, a credit event on the horizon, and a clear liquidity crisis; we suspect the BoJ's comments last night are more crucual given the near 1.00 correlation between US equities and JPY crosses...

As we noted yesterday,

"Needless to say, a delay in QE would crush Abenomics, as it would mean a surge in the Yen, a plunge in the Nikkei - really his only accomplishments so far - even as wages never rose, pushing the economy back in the deflationary limbo from whence it came as everyone rushes to sell financial assets. "

Of course, the Nikkei is getting crushed...down over 400 points from yesterday's highs


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Thu, 01/23/2014 - 10:42 | 4358692 LawsofPhysics
LawsofPhysics's picture

Range trading?  < shocker >  Buy low and sell high...

same as it ever was...


I see many buying VIX calls for April/May/June, what's the word?

Thu, 01/23/2014 - 10:49 | 4358717 IridiumRebel
IridiumRebel's picture

I'm buying FakeBook. Its a BTFATH deal!!!!! Look at this recent report on how bullish it will be in a few years cuz like, you know, like, everyone uses FakeBook!

Facebook has peaked and the social network could lose up to 80 percent of its users by 2017, researchers say.

Academics at Princeton University used theories on the spread of disease combined with Google Trends data on searches for Facebook to predict the demise of the world's largest social network.

"Facebook has already reached the peak of its popularity and has entered a decline phase," they concluded. "The future suggests that Facebook will undergo a rapid decline in the coming years, losing 80 percent of its peak user base between 2015 and 2017."

Thu, 01/23/2014 - 11:11 | 4358782 Occident Mortal
Occident Mortal's picture

Glad to see the DOW coming down as I am short from 16,000

see here


And also long gold from 1,200

see here


Opened both positions over the month of December, as documented on ZH, so lets see how they play out over the next 12 months...

Thu, 01/23/2014 - 11:27 | 4358847 IridiumRebel
IridiumRebel's picture

I bought GDXj at 1234 apologies when it tanks to 1180.

Thu, 01/23/2014 - 11:59 | 4359006 LawsofPhysics
LawsofPhysics's picture

Wait for it, I havn't had a position in gold since 2000.  Trust me, when I go long, then it will tank.

I am talking paper here, all my physical is just fine.

Thu, 01/23/2014 - 11:23 | 4358829 CharlieMike
CharlieMike's picture

My 15yo daughter told me that 2 years ago.

Thu, 01/23/2014 - 12:11 | 4359053 Crash Overide
Crash Overide's picture  is literally where all the action is...  :)

Thu, 01/23/2014 - 10:41 | 4358693 Uncle Sugar
Uncle Sugar's picture


Thu, 01/23/2014 - 10:42 | 4358694 Sudden Debt
Sudden Debt's picture


Thu, 01/23/2014 - 10:41 | 4358695 GetZeeGold
GetZeeGold's picture



Buy you dips!

Thu, 01/23/2014 - 10:45 | 4358700 Sudden Debt
Sudden Debt's picture

got any low cal? and not to spicy, my ulsur is playing up again...

Thu, 01/23/2014 - 10:50 | 4358714 EuropeanBankster
EuropeanBankster's picture

This time it´s different.. all top banksters are drinking weissbier in Davos and therefore not able to order their prop-traders "buy on the dips".. this week at least

Thu, 01/23/2014 - 10:43 | 4358698 Dr. Engali
Dr. Engali's picture

Pile on bears the water is fine. Old Yeller is just waiting for the chance to use her new found voodoo printing  powers to ream your asses.

Thu, 01/23/2014 - 10:46 | 4358708 Bearwagon
Bearwagon's picture

The water is unfine, and since we bears all got a very great olfactory organ we smell that she has pissed in it!

Thu, 01/23/2014 - 11:04 | 4358755 NoDebt
NoDebt's picture

I know it's very old-fashioned of me to talk about economics, but not for nothin', manufacturing just broke bad according to Markit's PMI survey.  Still over 50, but accelerating in the wrong direction.  Self-sustaining-recovery: off.

Thu, 01/23/2014 - 10:45 | 4358702 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Just a morning BTFD opportunity. NASDAQ 100 is already stair stepping itself back up on green planks. 

Thu, 01/23/2014 - 11:22 | 4358830 Lewshine
Lewshine's picture

Its 9:21 am CST - Dow is down 165. By noon the Fed will have a cork on this thing and the Dow will be down, at most, 100 pts, and improving. AND THAT GENTLEMEN, IS WHY MORE DOWNSIDE CAN BE ASSURED.

Thu, 01/23/2014 - 10:46 | 4358703 DaveyJones
DaveyJones's picture

I'm sure the special boys will cheer her up

Thu, 01/23/2014 - 10:46 | 4358704 IridiumRebel
IridiumRebel's picture

Five years after the collapse of Lehman Brothers Holdings Inc. forced governments to bail out financial firms and prompted a global recession, bankers are still grappling to convince the public they can avoid a similar crisis. In a vote at the end of the debate, almost 40 percent of the 100-strong Davos audience said markets haven’t been made safer. Banks and financial services are the least trusted of all industries, according to a survey by public relations firm Edelman released on Jan. 20


Thu, 01/23/2014 - 10:51 | 4358719 ebworthen
ebworthen's picture

Yes, and all those lovely bankers need to avoid another crisis is more of your money!

Thu, 01/23/2014 - 10:55 | 4358735 IridiumRebel
IridiumRebel's picture

It'd be terrible if a random space rock the size of a school bus were to hit that hotel in Davos.......

Thu, 01/23/2014 - 10:57 | 4358742 Quinvarius
Quinvarius's picture

You mean no one trusts the fraudulent companies that are legally allowed to steal everything you own?  Shocker.

Thu, 01/23/2014 - 10:48 | 4358709 rsnoble
rsnoble's picture

So now the US tumbles when another country doesn't dole out money? LOL. 

They are having a hard time pumping the market to a new high, for now, and all today does is set tomorrow up for the beloved REBOUND FRIDAY.

I'd rather see crash friday but they are still in complete control until otherwise proof is seen and I anxiously await the day that all the lies in the world can't prop this sack of shit up anymore.

Thu, 01/23/2014 - 10:53 | 4358728 Rising Sun
Rising Sun's picture

That fucking cunt Yellen fired up the printers - here comes the bounce.


Fuck you Yellen!!!!

Thu, 01/23/2014 - 10:57 | 4358737 ebworthen
ebworthen's picture

Hey Gang, no worries, Netflix is up 16%!!!

Thu, 01/23/2014 - 11:31 | 4358856 Lewshine
Lewshine's picture

Netflix was a great bet - What else does the sheep do when they don't: shop, work, buy homes, dine out, go to college?? THEY VEGITATE IN FRONT OF THE BOX.

Thu, 01/23/2014 - 10:59 | 4358748 IdeasRbulletproof
IdeasRbulletproof's picture

Question. Seeing now that every time gold goes up, the 10 yr goes down. What would cause the opposite effect to occur? Or is this normal?

Thu, 01/23/2014 - 11:12 | 4358786 LawsofPhysics
LawsofPhysics's picture

Anything to flatten the yield curve.  In a "debt-is-money" fractional reserve system, the debt must increase or those liabilities will not be funded, period.  looks to me like TPTB will not allow the ten year to break 3%, so things must be much worse than I originally thought.

Thu, 01/23/2014 - 11:33 | 4358869 CrimsonAvenger
CrimsonAvenger's picture

Agreed on the 3% upper limit. It's been amazing over the past few weeks to watch the rate bump up against 3%, with closes just a few thousandth of a percent below. I can only imagine the gymnastics happening behind the scenes to keep that down.

Thu, 01/23/2014 - 11:34 | 4358877 IdeasRbulletproof
IdeasRbulletproof's picture

Thanks for the reply. I was thinking the same. I wasn't sure if they had the ability to manipulate that as well...

Thu, 01/23/2014 - 11:05 | 4358760 mtthw2
mtthw2's picture

Plung protection team will be on-line soon--PR team getting story together now..All is good; no worries

Thu, 01/23/2014 - 11:09 | 4358764 CheapBastard
CheapBastard's picture

"Stock prices never drop" broker told me....

"House prices never drop"... my realtor told me ....

"We beleive in a strong dollar" Timma told me....

"Best car you'll ever drive" ... the Pinto dealership told me ....

Thu, 01/23/2014 - 14:50 | 4359716 Slave
Slave's picture

"Social Security will allow everyone to comfortably retire" the gubmint told me....

Thu, 01/23/2014 - 11:08 | 4358773 Dapper Dan
Dapper Dan's picture

Barclays Bob is back.


PhilAldrick Philip Aldrick

 Bob Diamond is back, beaming, and bouncing around Davos like a 'master of the universe'. Hard to imagine he only fell from grace 18 mths ago About 58 minutes ago via Twitter for iPad Favorite Retweet Reply

Thu, 01/23/2014 - 11:08 | 4358775 Yen Cross
Yen Cross's picture

    All around nasty macro U.S. numbers today. I find it interesting that the existing home sales numbers were revised from 4.90m to 4.82m last week to show a worse read compared to the 4.87m miss posted today... caugh- caugh.

Thu, 01/23/2014 - 11:10 | 4358779 ghostzapper
ghostzapper's picture

Fed and BOJ jawbone "tapering" which is all bullshit because until they open the vaults for routine audits they likely aren't truly tapering.  ECB slides in with its launch of QE.


Sheeple giggle about Bieber and the Kardashians and catch a headline that suggests the Central Bankers have this under control and can reduce money printing.  Zzzzzzzzzzzzzzzzzzzzzzzzzz.  

Thu, 01/23/2014 - 11:25 | 4358785 mtthw2
mtthw2's picture

As the bieber goes, the market goes.. Tyler we need a chart on that.

Thu, 01/23/2014 - 11:15 | 4358788 Boston
Boston's picture

What about Treasury yields? 

Oh yeah, they're crumbling.

Imagine what'll happen to the 10y when/if stock REALLY sell off hard.....let's be honest, today's equity drop 'tis but a scratch.

Thu, 01/23/2014 - 11:19 | 4358814 LawsofPhysics
LawsofPhysics's picture

Many short-term yeilds are negative already.  In a debt-is-money system, anything and everything will be done to flatten the yield curve, including capital controls, price fixing, 401k rehypothication etc.

hedge accordingly...

Thu, 01/23/2014 - 11:25 | 4358839 Boston
Boston's picture

Sure, but when/if we are reintroduced to some serious risk-off moment, we'll see bull flattening, instead of bear flattening.

Thu, 01/23/2014 - 11:26 | 4358842 bigkahuna
bigkahuna's picture

Its the weather, long term loser welfare (un unemployment) expiration, and the obamacare body-count-ometer ticking. Thats why. 


oh yeah, the gold is gone too. Yeah, gone.

Thu, 01/23/2014 - 11:38 | 4358894 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

BTFD opportunity. Yeller I'll see you in Hell bitch.

Thu, 01/23/2014 - 11:44 | 4358924 EuropeanBankster
EuropeanBankster's picture


Thu, 01/23/2014 - 12:25 | 4359099 walküre
walküre's picture

was it something they served at Davos this morning?

Thu, 01/23/2014 - 12:39 | 4359155 TheRideNeverEnds
TheRideNeverEnds's picture the dip?



Thu, 01/23/2014 - 13:13 | 4359292 wiseindian
wiseindian's picture

Dow dips like this much more and we'll be guaranteed no taper in Jan... although.... I swear swear swear that the Fed isn't really trying to prop up the's really for the common man...really.



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