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Dow Transports Crash; All US Equity Indices Red For 2014

Tyler Durden's picture





 

After escalating higher and higher in the last few days as the rest of the market slipped further into the red for 2014, the Dow Transports has collapsed 3.25% at this morning's open - its biggest drop in 9 months. This, along with the plunge in the NASDAQ and Russell has dragged every major US equity index into the red once again for 2014... The S&P 500 cash index is now the most below its 50-day moving average in almost 4 months. VIX has spiked to 15.4% - its highest since pre-Taper as JPY carry unwinds drag US equities lower once again... Credit markets have no retraced all post-Taper gains (and stocks are rapidly catching down).

 

 

Of course, the driver of the weakness is JPY carry unwinds...

 

Credit has led the way and now eradicated all gains post-Taper...

 

S&P 500 drops back below its 50DMA...

 

Charts:Bloomberg

 


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Fri, 01/24/2014 - 10:52 | Link to Comment thunderchief
thunderchief's picture

Gold you fools..

Gold!!!

Fri, 01/24/2014 - 10:56 | Link to Comment disabledvet
disabledvet's picture

I can think of a whole lot of things actually. "just no funny money please."

Fri, 01/24/2014 - 10:58 | Link to Comment camaro68ss
camaro68ss's picture

" dont shoot them, let the basterds burn" - Saving Privet Ryan

Fri, 01/24/2014 - 11:01 | Link to Comment Big Slick
Big Slick's picture

I made an interesting observation this morning.  I haven’t watched an opening bell on CNBC for maybe two years until today.  Question: When did Jim Cramer become a permanent fixture on a financial news network? 

This guy is an opinioned stock-picker.  Not an unbiased reporter.  I was amazed!  Here we had a somewhat poor opening.  127 points is not earth-shattering but it is ‘financial news.’  And I’m listening to nothing but his personal opinions as a stock-pusher, a perma-bull, and a conflicted party.  The “anchors” remained mostly silent.  It’s the same as having Maureen Dowd or Charles Krauthammer anchor a news broadcast.  The objectiveness of CNBC is a joke.   I think we're close to an inflection point here.  Very close.

CNBC has not only jumped the shark, “Joanie Loves Chachi” has opened and cancelled.   

 

Fri, 01/24/2014 - 11:01 | Link to Comment buzzsaw99
buzzsaw99's picture

they always trot their head cheerleader out on down days.

Fri, 01/24/2014 - 11:14 | Link to Comment Say What Again
Say What Again's picture

While the indexes themselves had significant gap-down-on-open conditions, the real shocker was the extreme negativity in the $TICK (and other related internals) at the open.  They were something on the order of twice the average of extreme negative readings, where the average is measured over MANY years.

Fri, 01/24/2014 - 12:25 | Link to Comment SAT 800
SAT 800's picture

Also, the global Dow index. It's hardly the crash-proof bull market to infinity that the know-nothings with their 401K's were counting on. Even if it rallies back in the next week; the mass mind will have a hickey on it that will make the next down wave more likely and more serious and sooner.

Fri, 01/24/2014 - 11:02 | Link to Comment BLOTTO
BLOTTO's picture

Keep fanning the fire faster boys...

.

Dysfunction does indeed have a timeline.

 

 

Fri, 01/24/2014 - 11:06 | Link to Comment Cursive
Cursive's picture

@Big Slick

Yep.  The Rubicon was crossed many years ago.  Been waitin for the 2008/09 fireworks to start and maybe we are there again....

Fri, 01/24/2014 - 11:08 | Link to Comment Hippocratic Oaf
Hippocratic Oaf's picture

First of all, cramer (always w a small cap), is a piece of shit.

It's ALL they have...........sad I know. The good talent either died or went to another network.

Nobody wants to work there when cramer and liesman are in control.

 

Fri, 01/24/2014 - 11:08 | Link to Comment Pig Circus
Pig Circus's picture

"When did Jim Cramer become a permanent fixture on a financial news network? "

Ever since the day the Circus came to town. They were in need of a professional Carnival Barker.

Fri, 01/24/2014 - 11:09 | Link to Comment optimator
optimator's picture

Cramer should be doing infomercials, come to think of it.......

Fri, 01/24/2014 - 11:30 | Link to Comment Levadiakos
Levadiakos's picture

Yeah. OK. OK. but what's he buying?

Fri, 01/24/2014 - 11:39 | Link to Comment NoDebt
NoDebt's picture

ShamWow.  It'll make you say Wow every time.

Fri, 01/24/2014 - 15:01 | Link to Comment wiseindian
wiseindian's picture

Jim Cramer is to financial news what Rush Limbaugh is to political news...just an entertainer, a performer with a private circus of his own. If you allow yourself to be entertained then you're fine. If you allow yourself to be influenced, you're fucked.

Fri, 01/24/2014 - 11:31 | Link to Comment Groundhog Day
Groundhog Day's picture

transport's were p over 40% in 2013.  a 2% sell off is hardly a CRASH

Fri, 01/24/2014 - 11:40 | Link to Comment credittrader
credittrader's picture

...not really about where we came from? -3.5% from yesterday highs and biggest drop in 9 months smells a bit more like a crash than a slip?

Fri, 01/24/2014 - 12:21 | Link to Comment SAT 800
SAT 800's picture

Yet. but if this one rallies back again; which is fairly likely, then we can short the market again. The next big move is to the downside, that's clear enough, what else do we need to know?

Fri, 01/24/2014 - 10:56 | Link to Comment Say What Again
Say What Again's picture

Finally!

A dip worth buying!

/</sarc>

Fri, 01/24/2014 - 11:05 | Link to Comment gmrpeabody
gmrpeabody's picture

You are correct, sir..., and I am starting to nibble the SDS with a tight stop (mental).

Fri, 01/24/2014 - 12:28 | Link to Comment SAT 800
SAT 800's picture

Well, there are a lot of different markets. I wouldn't be against buying Silver at these "dipped" prices. Around $20ish.

Fri, 01/24/2014 - 12:26 | Link to Comment SAT 800
SAT 800's picture

And for the non-fools; Silver !

Fri, 01/24/2014 - 12:53 | Link to Comment endorush
endorush's picture

golds getting blowtorched right now. my stocks are holding up well in comparison

Fri, 01/24/2014 - 10:53 | Link to Comment buzzsaw99
buzzsaw99's picture

it's a ruse

Fri, 01/24/2014 - 10:54 | Link to Comment Variance Doc
Variance Doc's picture

Naturally, since I went index long.

You're welcome short bitchez!!

Fri, 01/24/2014 - 12:45 | Link to Comment Nobody For President
Nobody For President's picture

Thanks Variance! I'm index (RUT) short. I appreciate your sacrifice.

Fri, 01/24/2014 - 10:56 | Link to Comment youngman
youngman's picture

Its amazing that the Japanese have so much invested in Argentina and Venzuela.....

Fri, 01/24/2014 - 12:13 | Link to Comment SAT 800
SAT 800's picture

LOL. Yes, isn't it.

Fri, 01/24/2014 - 10:56 | Link to Comment Max Damage
Max Damage's picture

Of course the Ramp bots are moving Twitter up for the insiders until lock up expires

Fri, 01/24/2014 - 10:58 | Link to Comment buzzsaw99
buzzsaw99's picture

yeah, but twitter has no value, that's its edge.

Fri, 01/24/2014 - 11:07 | Link to Comment pavman
pavman's picture

For some reason my trading platform can't find TWIT.  WTF.

Fri, 01/24/2014 - 13:32 | Link to Comment Nobody For President
Nobody For President's picture

Try TWAT.

(If that doesn't work, try TWTR)

Fri, 01/24/2014 - 10:57 | Link to Comment brewing
brewing's picture

So what...

Fri, 01/24/2014 - 11:02 | Link to Comment Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Again, wake me up, and then perhaps post a deer-in-the-headlights, when this becomes sustained. I see a 10-15 min drop on the NASDAQ, but then already massive and rabid buying pressure. Unless the NASDAQ drops under 4,000, I just won't even consider this the beginning of a correction.

 

If you watch CNBC, a one day .54 percent drop is a "correction" that we've all been waiting for and reason to buy into the market. 

Fri, 01/24/2014 - 11:06 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Didn't you get the news?  The Fed is tightening.

Fri, 01/24/2014 - 11:21 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Yes, "tightening" (while printing 75 billion dollars per month).  Watch the dollar swaps and REPOs, could get interesting.

Fri, 01/24/2014 - 11:23 | Link to Comment OldE_Ant
OldE_Ant's picture

lol.  Somehow I can't see them calling Yellen the 'hot tight ass' that saved the world.

There is no tightening, there is no market, and yep there is no spoon, just like there are no more unemployment checks, to go with the no new jobs for you. 

1.5M * $2K/month is immediate $3B/month tighter.  To go with the 10M losing $4K/month of employment permanently.

Nothing like the smell of defaults in the morning.

Fri, 01/24/2014 - 11:07 | Link to Comment OldE_Ant
OldE_Ant's picture

BTFD muppets.  Ohh EBT doesn't work in the stock market casino.

Wait what about those unemployment checks.  Nope none of those.

The FED is here to save the dayyyyyyy..

Send in Super bitch to fat finger this shit up.

Fri, 01/24/2014 - 11:19 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

cracking up watching those mother fuckers on CNBS trying to talk about anything exept the fucking Dow trying to post another 3 digit loss....

"its all China;s fault...."

"there seems to be a disconnect between THE GOOD economic data points and INVESTORS SENTIMENT...."

shit is hilarious...fucking Fraud Market propagandists assholes....

Fri, 01/24/2014 - 11:21 | Link to Comment Al Capowned
Al Capowned's picture

Taper reversal in 3-2-1 ....

Fri, 01/24/2014 - 11:31 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

watching the phony paper Gold and Silver market action along side the Fraud Markets...

soon as Gold hit 1270 it immediately got knocked down below it...

same with Silver at 20.20...

they definitely managing that shit real tight as evidenced once again by the narrow ass range both have been trading in above $1250 and $20 long term resistance levels...

KEEP STACKING....

Fri, 01/24/2014 - 12:11 | Link to Comment SAT 800
SAT 800's picture

Nobody is managing anything; sadly, you're delusional.

Fri, 01/24/2014 - 11:31 | Link to Comment glossolalia
glossolalia's picture

Anyone who can't tell that the fast stochastic oscillator bias ratio and are pointing to a Kondratieff winter are crazy! Take all your guns and gold to the basement now!!!!

Fri, 01/24/2014 - 11:37 | Link to Comment glossolalia
glossolalia's picture

Anyone who can't tell that the fast stochastic oscillator bias ratio and are pointing to a Kondratieff winter are crazy! Take all your guns and gold to the basement now!!!!

Fri, 01/24/2014 - 11:41 | Link to Comment monopoly
monopoly's picture

Oh oh. I guess this is not working anymore. What to do. Hmmmm. Already done.

Fri, 01/24/2014 - 11:41 | Link to Comment BullyBearish
BullyBearish's picture

So...how do you continue the taper and prepare for slowly rising interest rates?  Why, you spook all intelligent investors into rotating out of their pumped up stocks and back into bonds thereby keeping the bond vigilantes at bay until that magic moment when the supposedly disbanded PPT comes in to reverse the procedure.  Ping pong anyone?

Fri, 01/24/2014 - 12:03 | Link to Comment TheABaum
TheABaum's picture

As I sit comfortable in cash. Wish I had hat the guts to short SPY, though.

Fri, 01/24/2014 - 16:05 | Link to Comment RebelDevil
Fri, 01/24/2014 - 12:08 | Link to Comment SAT 800
SAT 800's picture

Well, my shorts in ES, the S&P500 futures contract are worth almost $6,000, now; but I'm not interested in chump change; I'll either wait till they run back to zero and take me oiut with a zero stop loss, or make some serious money. The GBP?USD trade I told you to short yesterday is good 200 points; already, with plenty more to go. And for the poster who thought his mythical Gold Manipulators would interfere with the precious, this morning; Gold is up another $6, and London is already closed, with an unusuallly high afternoon fix. This is a public service anouncement; how do you make money off of major markets? one. never trend follow. always pick tops and bottoms. two never pick a profit point, let your trade develop if you don't get stopped out in the first few days. What you're waiting for is a trending market; that's where serious money is made, but you do it by taking a position and waiting to see what happens; no-one can predict the future, but fortunately that's not necessary. For the same reason your ideal trade has a time line of months; not days, or heaven forbid, hours. I see people on here all the time waiting for the down-move in the Stock Market to "confirm" itself, so they can go short; this is how you become broke and bitter. What I"m describing to you is my new, personal, guaranteed insights into the business of futures trading. In the case of the stock market, for instance, you would be selling short ES the index contract on the futures market; at any likely looking top; when the conditions are ripe; as they have been for months now; then you either get out with a small stop loss, or if the trade goes your way for a few days, you put on a zero dollar stop loss. Everyone will tell you not to top pick; I'm telling you; yes, top pick. and bottom pick. After that you wait and let the future unroll; don't pretend you know things; no one does. So far I'm out about $5,000 on my four short positions I've tried on the Stock Market; if you don't succeed, try, try, again. Why don't I take this opportunity to get my money back on my present position, short from 1841? Because I don't want my money back; I want a big profit. If the market runs back up and takes out my zero loss stop; I'll just short it again. Likewise with the short on GBP from 1.6545; I want to hold that position by rolling over the contract to more forward months all year, probably; what I'm looking for is a collapse in the Pound, not a few thousand dollars. If the market runs against me, which I think is practically impossible at this poiint, but if it does, I'll take a small loss, wait and short it again. And finally, never, ever listen to anyones opinion about any market. the money is in the futures market, forget about actually being in the stock market; also forget about options, and ETF's; you don't need any of these things to make huge profits. During the crash, I got a huge amount of flack on this blog for advising that I was buying BofA at $5.00/ a share. Not only that, I bought it with two to one brokers margin. This was when the anti-realists on here were predicting the failure of BofA within weeks. Why did I do this? Because Too Big To Fail, means exactly what it says; and if it isn't going to fail, and we've already been told it will not; then it's balance sheet and it's stock price will have to be pumped up; in short, it was a case where there was no downside risk; the bottom was already in. I took 67% net profits in a few weeks and never had a thing to worry about. I really need to write a book; but I'm too lazy; I have a complete method of trading, developed over a thirty year period. but that's the essence of it. Understand mass thinking; look for over shot markets, too high, or too low, and pick tops and bottoms; then let the market tell you if you're right or not. If you're not right that time; take a small loss; if you are right that time, wait out the trend that moves in your favour; you need the big profits to cover the small losses, which you will make; so you'll have a nice income to pay taxes on at the end of the year. Recently I was wrong about the long bond market; but it cost me nothing. I sold a good top, I put in my zero dollar stop order, and the market turned against me and raillied; I got out at zero. I don't care. Why should I? it's a business, not an ego contest.

Fri, 01/24/2014 - 13:50 | Link to Comment Nobody For President
Nobody For President's picture

This is pretty close to what I have been doing. I was down a pretty good pile yesterday, now up enough to put in the zero lose stops and see how it goes over the weekend. There is obviously going to be a risk off period this year - this may be the start of it. So let 'er run...

It is a business, also an interesting game - and not an ego contest. I like that line.

 

Fri, 01/24/2014 - 12:19 | Link to Comment SAT 800
SAT 800's picture

"Markets in the Red for 2014"--- An interesting observation is that the conept that it's 2014, or some other number of time, is a human construct. what is the actual meaning of anything being higher or lower in 2014, than in the same steadily flowing river of time, which has no actual markers on it, that we called 2013? Clearly, the answer is there is no meaning there. This error is called data picking. we give things significance by picking arbitrary times to take data points. Similar to way you manufacture global warming; you just pick a couple of dates when it was a little warmer at the later date and then pretend it's a trend.

Fri, 01/24/2014 - 12:25 | Link to Comment Spungo
Spungo's picture

"As I sit comfortable in cash. Wish I had hat the guts to short SPY, though."

Put $100 on the VIX with a 10% trailing stop. It's like betting on a horse race with slightly better odds, but much more entertaining.

Fri, 01/24/2014 - 12:36 | Link to Comment SAT 800
SAT 800's picture

This impulse you're having to short SPY is called trend following; you want to do what everyone else is doing. It's how you become broke in this business. It's not guts your missing, but a new concept. You needed to sell SPY short when it made a big new high on the daily chart; so that now you'd be counting your profits. Never try to jump on board any gravy train, because if you can recongnize it, it already left the station. You have to take your position when even your broker tells you your crazy.

Fri, 01/24/2014 - 16:09 | Link to Comment Nobody For President
Nobody For President's picture

Eggzactly!

Fri, 01/24/2014 - 12:51 | Link to Comment endorush
endorush's picture

healthy correction, lots of stocks on sale today. time to back up the truck

Fri, 01/24/2014 - 14:08 | Link to Comment BullyBearish
BullyBearish's picture

Go ahead...but watch out for that cliff

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