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Stocks Spanked; Gold Glistens; Currencies Crushed; And Bond Bears Battered

Tyler Durden's picture





 

Quite a day...

  • All-time record lows in many Emerging Market Currencies (TRY, ARS, VENZ (unof.) most)
  • Nikkei 225 -3.75% - biggest drop in 7 months
  • Emerging Market Stocks -3% - (4 month lows)
  • USD Index -0.7% - biggest drop in 3 months (2014 lows)
  • USDJPY -1.3% - biggest drop in 5 months
  • AUDJPY -2.35% - biggest drop in 7 months (4 month lows)
  • Dow -1.3% - biggest drop in 5 months (5-week lows)
  • 30Y Treasury Yield -9bps - near biggest drop since April 2013 (2-month lows)
  • Gold +2.3% - biggest gain in 3 months (2 month highs)
  • VIX +1.8vols - biggest jump in 3 months (1 month highs)
  • IG Credit +2.5bps - biggest jump in 5 months (1 month wides)
  • HY Credit -$0.5 - biggest drop in 4 months (1 month lows)

It seems that without the safety net of Fed flows, the reality that bad news might just be bad news and event risk is a real risk just started to hit home. The deer is back...

 

 

Early weakness on the China PMI contraction dropped US equity futures to Tuesday's congestion zone then BoJ being less than dovish provided further weakness to Tuesday's lows and despite almost CNY 400 billion in liquidity this week, short dated repo rates are not recovering notably in China (and CDS continued to widen). Data in the US was weak (with 1.4 million dropping off the rolls of EUC and existing home sales missing) and European data improved (hurting the USD further)... so having said all that - it seems foolish to pin today's weakness on any or all of this "news" - simply put, JPY strength (particularly AUDJPY thanks to AUD weakness on China and JPY strength on BoJ) dragged the major stock indices in Japan and the US lower and carry trades were unwound en masse...

 

AUDJPY vs S&P 500...

 

Trannies didn't bat a well-mascara'd eyelid today as the rest of the world slumped... leaving the gap between Industrials and Transports as big as we can remember...

 

Since the taper, things have escalated for Healthcare and de-esclated for Discretionary and Homebuillders...

 

Notice today's bounce began when the Dow tapped its Taper-day highs

 

The late day ramp was funded by VIX selling...

 

which enabled the S&P to recapture VWAP perfectly...

 

Gold and Silver surged today - as did WTI oil (slamming Breant-WTI to 6 week lows)...

 

Credit markets widened notably and stocks played further catch down...

 

Treasury yields tumbled today...

 

Charts: Bloomberg

Bonus Chart: Emerging Markets ETF tumbled notably...

 


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Thu, 01/23/2014 - 17:09 | Link to Comment Sofa King Confused
Sofa King Confused's picture

The Horror......The Horror.

Thu, 01/23/2014 - 17:10 | Link to Comment fonestar
fonestar's picture
Stocks Spanked; Gold Glistens; Currencies Crushed; And Bond Yields Battered

......and Bitcoin is only trading at $940!  (What a fool I was).

Thu, 01/23/2014 - 17:17 | Link to Comment Rock On Roger
Rock On Roger's picture

I agree.

 

Stack On

Thu, 01/23/2014 - 17:23 | Link to Comment eclectic syncretist
eclectic syncretist's picture

And Microsoft is apparently now a video game company.  I wonder what the NSA has inside the Xbox one?

Thu, 01/23/2014 - 17:32 | Link to Comment FuzzyDunlop21
FuzzyDunlop21's picture

Dear Lord Bernanke and Grand Poomba Yellen,

 

Thank you for this glorious opportunity to BTFD. I shall sacrifice a libertarian on your alter tonight.

 

Eternally grateful,

 

 

The Sheeple of the World

Thu, 01/23/2014 - 17:52 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

Seriously?  That thing can tell who is in the room, record everything they do or say, and practically give them a TSA-style body scan.

Thu, 01/23/2014 - 19:52 | Link to Comment MieleBauknecht
MieleBauknecht's picture

microsoft is already a game company since bald ballmer took over

Thu, 01/23/2014 - 17:17 | Link to Comment eclectic syncretist
eclectic syncretist's picture

With only 50,000 transactions a day bitchcoin is a sorry joke, mr. pump and dump.

Thu, 01/23/2014 - 17:28 | Link to Comment fonestar
fonestar's picture

I really wish I had just listened to you guys when BTC was < $50, cashed out and gone into silver and paper rectangles under my matress!  What was I thinking????

Thu, 01/23/2014 - 17:31 | Link to Comment Bizaro World
Bizaro World's picture

You were thinking Short Term...Long term, BTC will be manipulated like all other non-phys assets.

Thu, 01/23/2014 - 18:21 | Link to Comment tmosley
tmosley's picture

How?

For extra credit, how could it be done any worse than what has happened to gold and silver?

They can only sell their stolen bitcoins once.  They can print all the paper gold, paper silver, and plain ol' paper they want to keep you in poverty.

Thu, 01/23/2014 - 20:37 | Link to Comment disabledvet
disabledvet's picture

who needs paper when you have bitcoin? I mean "congratulations newly promoted Mr. Bank President...all your deposits are on the laptop sitting on that desk there."

No wonder they have the red phone in Batman.

Thu, 01/23/2014 - 21:46 | Link to Comment Scarlett
Scarlett's picture

Love both gold and bitcoin.  But as comex seems to be going the way of the Dodo, gold is my fave right now.

Fri, 01/24/2014 - 05:23 | Link to Comment Squid-puppets a...
Squid-puppets a-go-go's picture

yerp. it just needs one last push.

Hey fonestar? sell all your bitcoins for phyz gold now and we can kill the beast and us gold holders will be fabulously wealthy by round about tea time

Thu, 01/23/2014 - 18:34 | Link to Comment SAT 800
SAT 800's picture

February Gold shows a volume of 195,000 contracts today; and it's up another $1.80 after the New York Close.

Thu, 01/23/2014 - 21:08 | Link to Comment SoilMyselfRotten
SoilMyselfRotten's picture

aaannnnnnd it's gone

Thu, 01/23/2014 - 17:20 | Link to Comment knukles
knukles's picture

 

Now that's what I'm a talkin' about.
Things unglued sooner or later fall apart and when they do, the flight to quality begins... loving of gold and bonds....
It don't get any better than this.

This makes the Knuks Happier Than A Fat Lady in Spandex

 

Thu, 01/23/2014 - 17:26 | Link to Comment Ignatius
Ignatius's picture

Go to Walmart.... be happy.

Thu, 01/23/2014 - 17:26 | Link to Comment Rainman
Rainman's picture

doing my favorite ghetto dance right now 2.

Thu, 01/23/2014 - 17:55 | Link to Comment janus
janus's picture

http://www.metacafe.com/watch/mv-XJBra/this_is_spinal_tap_big_bottom/

there ya go, ole buddy.  

now you owe janus 'big'-time.

 

the looser the waistband/

the deeper the quicksand,

janus

Thu, 01/23/2014 - 17:28 | Link to Comment SAT 800
SAT 800's picture

Your use of the past tense implies that you are not now a fool. This is incorrect.

Thu, 01/23/2014 - 17:30 | Link to Comment Unprepared
Unprepared's picture
Stocks Spanked; Gold Glistens; Currencies Crushed; And Bond Bears Battered

... and Bitcoin Conned

Thu, 01/23/2014 - 17:30 | Link to Comment SAT 800
SAT 800's picture

I don't see where the problem is; I'm up $3600 on my shorts on the S&P500; what exactly am I supposed to be worried about?

Thu, 01/23/2014 - 17:54 | Link to Comment TNT
TNT's picture

Who cares! Marijana stocks are breaking out!

Thu, 01/23/2014 - 18:58 | Link to Comment Cattender
Cattender's picture

The Horror INDEED!!!! :-0

Thu, 01/23/2014 - 18:59 | Link to Comment Eireann go Brach
Eireann go Brach's picture

Don't abuse the Deer Tylers! He should only be brought out on special occasions, like a fine Scotch whiskey, not on a -.8% move on the S&P!

Thu, 01/23/2014 - 20:29 | Link to Comment franzpick
franzpick's picture

The deer we saw coming out of the financial woods was a doe, and the look in her eyes said "I'll never go in there for 2 bucks again"...

Thu, 01/23/2014 - 17:12 | Link to Comment Hindenburg...Oh Man
Hindenburg...Oh Man's picture

I wouldn't really use a deer-in-the-headlights. I'm following the e mini 100 NASDAQ, and it's almost back entirely after hours...moved from almost 1 percent down by 2pm, to .30 down or less by the close, higher after hours. Not even a loss on a "correction day". Something starting banging the NASDAQ higher right at 2 pm. Perhaps someone at Davos didn't want his/her night ruined, so made a few phone calls, sent a few emails. 

Thu, 01/23/2014 - 17:20 | Link to Comment AL_SWEARENGEN
AL_SWEARENGEN's picture

We need a 'Yellen in the headlights' picture.  That will be very appropriate moving forward.

Thu, 01/23/2014 - 17:31 | Link to Comment Unprepared
Unprepared's picture

"That will be very appropriate moving forward."

Yes, and at fall speed. The windshield be damned.

Thu, 01/23/2014 - 17:49 | Link to Comment Wait What
Wait What's picture

<---- Yellen in the headlights? obviously you haven't seen this one.

Thu, 01/23/2014 - 18:03 | Link to Comment AL_SWEARENGEN
AL_SWEARENGEN's picture

That's not a woman.  That's a man, man.

Thu, 01/23/2014 - 17:53 | Link to Comment Sophist Economicus
Sophist Economicus's picture

The word GHOULISH comes to mind....

Thu, 01/23/2014 - 18:03 | Link to Comment TheFuture_MrGittes
Thu, 01/23/2014 - 17:12 | Link to Comment Dr. Engali
Dr. Engali's picture

Uhmm about that taper thingy........ Never mind.

Thu, 01/23/2014 - 17:13 | Link to Comment LetsDoThisAlready
LetsDoThisAlready's picture

Someone please explain the deer to a hedge newbie. Deer in the headlights? What is the back story?

Thu, 01/23/2014 - 17:15 | Link to Comment OwnSilverPlayMusic
OwnSilverPlayMusic's picture

Yep, simple enough, deer in the headlights.  What we're ultimately looking at though is a frog in a boiling pot.

Thu, 01/23/2014 - 17:19 | Link to Comment RebelDevil
RebelDevil's picture

I wondered the same until I used my inuition.

The collapse of Bear Stearns and Lehman were "Deer in the headlights" moments, where a deer runs in front of your car while driving and you only have a split second to avoid the crash if at all.

Keep in mind history as well:
http://www.zerohedge.com/news/2014-01-13/just-three-charts

Thu, 01/23/2014 - 17:43 | Link to Comment seek
seek's picture

Deer, as you may know, freeze in panic when they suddenly see headlights coming at them.

At ZH, the deer is a metaphor for uninformed investors (aka "muppets," another ZH-ism with a mangled Kermit muppet in the street picture) freezing in panic when the markets suddenly turn against them. Note that "uninformed investors" can also be large banks caught off-guard by a sudden glimpse of reality.

The deer may have been used prior to the current form of the blog (back in the blogspot days) but the earliest appearance in context appears to be in August, 2010:

http://www.zerohedge.com/article/artists-rendering-boj-central-banker

Other trivia: google image search has named this image "deer in headlights zerohedge"

Thu, 01/23/2014 - 18:29 | Link to Comment fuu
fuu's picture

Hail to thee fellow ZH historian.

Thu, 01/23/2014 - 17:54 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

Also an extremely effective and completely illegal way to hunt deer.

Thu, 01/23/2014 - 18:14 | Link to Comment Yenbot
Yenbot's picture

But only from a 4x4 or semi with hella pushbars...

Thu, 01/23/2014 - 17:14 | Link to Comment thismarketisrigged
thismarketisrigged's picture

i love down days like today, but i have seen this script all too often over the past few years.

 

if we have another triple digit dow loss tomm and double digit s&p loss, although i will not be totally convinced yet, i will feel a little more convinced.

 

until otherwise, i cant take the bait, and i need to be prepared for another bullshit rally that wipes away all of todays losses and adds some gains.

Thu, 01/23/2014 - 17:21 | Link to Comment HpDeskjet
HpDeskjet's picture

Agree. We need a couple of days in a row like this to make the stupid momentum buyers turn. But that can happen on short notice. Next week another FOMC with a very likely 10bln taper, the drop in yields today will make the FED much more comfortable doing that. I told many ppl around me already for long QE-on = risky assets up, rates up. QE-off = risky assets down, rates down. But very very very few want to listen.

Thu, 01/23/2014 - 17:31 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Remember how empty the first several lifeboats to leave the Titanic were?

Thu, 01/23/2014 - 21:06 | Link to Comment franzpick
franzpick's picture

My screens say that today was a turning point, that 1-2 year uptrends have been or are about to be pierced, that psychology may have broken, and that the money managers who put in a great 2013 year, can have another good year going on defense in a dismally down 2014.

Violates the successful 50 or so year rule of buying the mid-term and selling the presidential, but then maybe rules were meant to be broken.

Thu, 01/23/2014 - 17:14 | Link to Comment imbtween
imbtween's picture

I can feel it in my bones - tomorrow morning's metals smackdown is going to be one for the record books.

 

Thu, 01/23/2014 - 17:20 | Link to Comment eclectic syncretist
eclectic syncretist's picture

The fed is tightening - that's all you need to know.  It's really that easy.

Thu, 01/23/2014 - 17:37 | Link to Comment Unprepared
Unprepared's picture

You can't call a tripleXL pair of jeans that does not fit fattening thighs "tightening"

Thu, 01/23/2014 - 17:25 | Link to Comment Seeking Aphids
Seeking Aphids's picture

I think they will try but they may be in for a surprise this time....too many buyers out there now.....

Thu, 01/23/2014 - 18:32 | Link to Comment SAT 800
SAT 800's picture

Dow down 1% today; Gold up 2%; I'm going to respectfully disagree on your down day for Gold tomorrow. But that's just my opinion.

Thu, 01/23/2014 - 21:14 | Link to Comment franzpick
franzpick's picture

Wth all due disrespect I'll also disagree on an AU down day.

All seriousness aside...

Fri, 01/24/2014 - 05:29 | Link to Comment Squid-puppets a...
Squid-puppets a-go-go's picture

maybe itll be so obvious that itll be the one to prompt the court case

Thu, 01/23/2014 - 17:16 | Link to Comment Yen Cross
Yen Cross's picture

  I turned Blow Horn, cnbs on to see the close. Every fucking thing they discussed of any value was covered by Tyler hours ago, and in much deeper depth.

  CNBS= Crony Numbnuts Bullshiting Syndicate

Thu, 01/23/2014 - 17:23 | Link to Comment RebelDevil
RebelDevil's picture

They're blinded by their own liberal and bullish ideology. Unfortantely that's what will screw them and their fans over.

Thu, 01/23/2014 - 17:35 | Link to Comment SAT 800
SAT 800's picture

Time to short CABLE; some idiot bought the pound overnight and today; there will be buyer's remorse; it's a currency with no visible means of support. It's also time to short the EUR.

Thu, 01/23/2014 - 17:21 | Link to Comment TonyCoitus
TonyCoitus's picture

Just another opportunity to BUY THE FUCKING DIP.  Don't fight the all knowing and powerful FED, Bitchez.

Thu, 01/23/2014 - 17:23 | Link to Comment the not so migh...
the not so mighty maximiza's picture

but, but unemployment is going down

Thu, 01/23/2014 - 17:23 | Link to Comment ptoemmes
ptoemmes's picture

Someone needs to shoot that damn deer: http://www.youtube.com/watch?v=LyPFQKpRnd0

Thu, 01/23/2014 - 17:30 | Link to Comment financialrealist
financialrealist's picture

POMO full steam ahead...just wish we'd hit the iceberg already...

Thu, 01/23/2014 - 17:35 | Link to Comment janus
janus's picture

yup.   the deer is back and all the forest's denizens sense what's up.

https://www.youtube.com/watch?v=GF3iK3rJUfU

thank goodness those pros in davos have it all well in hand:

https://www.youtube.com/watch?v=qdWV6gz8SYY

 

Thu, 01/23/2014 - 17:42 | Link to Comment TheRideNeverEnds
TheRideNeverEnds's picture

Don't you worry, by this time tomorrow we will be back up what we were down today and then some as they slam the VIX back below 12.  

Thu, 01/23/2014 - 17:36 | Link to Comment Kirk2NCC1701
Kirk2NCC1701's picture

Are we there yet?

Thu, 01/23/2014 - 17:41 | Link to Comment seek
seek's picture

No.

I keep hoping one of these days I'm woken by a 5AM phone call (I'm in the west) from one of my east coast friends calling about the exchanges melting down, bank holidays being declared and that it's game on... but I think we still have a couple years.

It does feel like (to me) something big is coming, though.

Thu, 01/23/2014 - 18:24 | Link to Comment css1971
css1971's picture

Y'know with the central banks funding forever in place I think it's just going to be a long slow 20 year deleveraging grind down. Several "lost decades".

Thu, 01/23/2014 - 17:40 | Link to Comment BigRedRider
BigRedRider's picture

Stocks got spanked?  Meh, no problemo.  According to Yellenomic Physics, what goes down must go up.

Thu, 01/23/2014 - 17:41 | Link to Comment Wait What
Wait What's picture

What's the use of worrying? when your pile is on the wane, don't complain of robbery...

http://www.youtube.com/watch?v=4HgCtHZQlJM

Thu, 01/23/2014 - 17:42 | Link to Comment q99x2
q99x2's picture

The money is not flowing into safety yet. Bitcoin Last:$951.99

Thu, 01/23/2014 - 17:43 | Link to Comment Rising Sun
Rising Sun's picture

After the Dow falls 230 points, it climbs 60 in the last two hours.

 

More of the fucking same - Yellen, that fat ugly cunt, has fired up the printers and we will be back in record territory before the end of next week.

 

The good news is that a Chinese bank closed its doors today - out of cash - LMFAO!!!!  GO COMMUNISM!!!!

Thu, 01/23/2014 - 17:45 | Link to Comment B.J. Worthy
B.J. Worthy's picture

That 2pm VIX-smasher neads to be pummelled with a sockful of pennies.

Thu, 01/23/2014 - 17:44 | Link to Comment MickV
MickV's picture

POMO saved today by the beggers, to be used tomorrow for +20 S&P.

Thu, 01/23/2014 - 17:48 | Link to Comment The_Ungrateful_Yid
The_Ungrateful_Yid's picture

All is well within the ASYLUM driven by our masters.

 

http://www.youtube.com/watch?v=wfGD5FgtNtY

Thu, 01/23/2014 - 17:57 | Link to Comment q99x2
q99x2's picture

Not to panic. Nothing to see here. The boat's still afloat. 

BTFD

Thu, 01/23/2014 - 17:59 | Link to Comment wiseindian
wiseindian's picture

Oh and ...and ..and...this...

http://www.cnbc.com/id/101359149

 

 

Thu, 01/23/2014 - 18:01 | Link to Comment deerhunter
deerhunter's picture

Why wasn't that deer under my treestand the last day of the season this past Sunday?  Oh well, I have some venison in the freezer but would have loved to have MOAR!

Thu, 01/23/2014 - 18:03 | Link to Comment Legolas
Legolas's picture

Silver bit it hard today just after 11am.  It did recover though.

Thu, 01/23/2014 - 18:10 | Link to Comment larry david
larry david's picture

We were off the lows though. CNBC made sure to point this out about 50 times in the final half hour of trading. 

Thu, 01/23/2014 - 18:26 | Link to Comment Legolas
Legolas's picture

The problem is people are too dumb to catch on that they're being jacked around, which is why they get away with such garbage reporting.  Just had a very bad experience with a doctor in a high-end field of medicine. 

But then it dawned on me:

They are practicing medicine.  And we are supposed to be patient, which is why we are called patients.

Some lessons only get learned the hard way. I even had to pay for that revelation.  Ugh...

Thu, 01/23/2014 - 18:34 | Link to Comment 22winmag
22winmag's picture

Get ready for pitchforks and torches... bellies are growling and toes are freezing.

Thu, 01/23/2014 - 18:54 | Link to Comment _SILENCER
_SILENCER's picture

Pitchforks! How silly! Life is good!

My new Bitcoin EBT card is all the rage down at the Santa Monica Whole Foods. I bought 12 cases of Thai coconut water and some GMO-Free Fruit Roll Ups for my kids Dakota and Barrington. After that I went over to the CVS and used my Obamacare Free Pass Card to put my nine year old on birth control pills.

 

My precocious little son Barrington wants an X box for his birthday, and in order to keep him safe via NSA surveillance, I went ahead and bought it. Sure, the EMF throughout the house, coupled with our smartmeter, make me feel weird and my wife has broken out in a strage case of weeping, burning hives, but that's nothing this here Paxil under the tongue spray can't fix with a little dreamlike dose of self satisfaction and general calm.

 

All is well, I'm bullish on Target now they've uninsured all that part time rabble...and I just saw an ad on my FIOS TV that says there's a place in town where I can sell all of my old gold. Man, what a great time to be alive!

Thu, 01/23/2014 - 19:25 | Link to Comment SAT 800
SAT 800's picture

Gold and Silver continue to rally in the night market; S&P and Dow continue to slide.

Thu, 01/23/2014 - 19:26 | Link to Comment chump666
chump666's picture

Asia is killing the market.  The FED can't fight Asia

Thu, 01/23/2014 - 19:36 | Link to Comment DIgnified
DIgnified's picture

"The saving grace for the market as a whole may be the midterm elections and the fact that President Obama and the Democrats in Congress have a war chest of almost $1 trillion in unused stimulus and repaid TARP monies. Already addicted to spending, the appeal of propping up the economy by throwing around all that money will certainly prove too much to resist. If that happens–and it probably will–enjoy the ride, but understand that other countries, especially those financing our debt are growing weary of our government?s spendthrift ways. If that is the case, by next October you can expect interest rates could rise quickly and the ensuing market fall could be harrowing."

http://www.forbes.com/2009/12/11/gold-dollar-commodities-personal-financ...

12/11/09

 

Too bad we couldnt see this coming...

Thu, 01/23/2014 - 20:05 | Link to Comment kragsquest
kragsquest's picture

THE STOCKS SHOULD CONTINUE TO BE SPANKED AS THEY CRY LIKE BABIES.

 

http://i.imgur.com/5v2Lb9h.jpg

 

http://i.imgur.com/UDYUf.jpg

Thu, 01/23/2014 - 22:54 | Link to Comment Hindenburg...Oh Man
Hindenburg...Oh Man's picture

NASDAQ up .20 percent after hours, even w/ Asia down. What a liquidity suck. Holy shit. Pump up the futures for tomorrow morning, as per directions from Davos. 

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