Goldman Summarizes Today's Carnage

Tyler Durden's picture

Well, they did predict this would happen, even if it was in direct contradiction with the numerator part of Goldman's top trade of 2014 which is being long the S&P500.

From Goldman's sales and trading team:

Equities off across the board with all sectors down and 96% of the SPX components closing lower – before today we hadn’t closed below 1800 since December 17th. Unlike earlier down days this year, today was very active and we had interest to buy/rotate names on the move lower. Telecom fares best, ‘only’ down 1%, while Industrials were down 3.1%. Good news is there’s only 1 week left to January. Closes: SPX -2.09 % to 1790.29; DJIA -1.96% to 15879.11, NASDAQ -2.15% to 4128.17.

The VIX up sharply +4.37 to 18.14.

USDJPY continues its pullback -0.85% today almost breaking 102 before stabilizing around 102.30 and AUD continues to melt lower -1% to fresh cycle lows. Day two of EM underperformance as TRY, RUB and ZAR all end more than 1% weaker and risk-off sentiment washed into other asset classes. EUR stable and nearly unchanged on the day, CHF +0.30%, and GBP -0.7%.

The rally in Treasuries continued with 10s closing another 4bps stronger and 2y1y rallying 4bps as well compared to yesterday’s close. Flows were light relative to the price action as it felt like most of the activity took place in futures. That said, we did see continued front end buying from foreign accounts along with short-covering from fast money. There was little interest to set new shorts. Next week the FOMC meeting will be closely watched.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
RaceToTheBottom's picture

Where is the Muppet picture???

knukles's picture

I tremble at the insights, the raw display of humility and intellect.
I stand in awe of oh fuck it why am I even thinking about some asinine commentary after the markets have closed that says golly gee wiz the markets closed like this today, Lordie lordie lordie, lah de fucking dah...

It's after reading something like this that I understand why crazy people want to take their clothes off in public and shave their nuts ...
Well, kind of ...

RaceToTheBottom's picture

Why would the Muppet shave his nuts in public? Was he injured? Oh the horror. GS needs the Muppets to be healthy and buying.

Richard Chesler's picture

"we did see continued front end buying from foreign accounts along with short-covering from fast money. There was little interest to set new shorts."

You hear that muppets? Everything's fine. Trust us.

Tom_333's picture

At least they tell us in advance what they are going to do...

Yen Cross's picture

  Ask and you shall receive. :-D

  Kermit picture

prains's picture

thanks Yen, makes me laugh everytime.......maybe I'm just simple

stocktivity's picture

I'm pretty sure Goldman still had a positive trading day.

Boondocker's picture

I told my neighbor that 12000 would be the number next week...he looked like he was going to cry.

Haager's picture

I see. I guess he cries on a regular basis after your salmons, right? 

buzzsaw99's picture

The squid predicted a 3% decline. Astounding.

Dr Benway's picture

That's how these tealeaf reader anal-ysts roll. They'll predict something and in another place predict the opposite, then they can claim to be right either way. Hedging their shilling.

SAT 800's picture

The Marketwatch headline writers finally got it together; the positive spin is: " You should welcome this market correction:". UH-HUH. right.

migra's picture

 I also smiled when I read that little gem marketwatch choked up. Fucking cheerleaders every last one of them.

MarcusAurelius's picture

I am as much a person of caution as anyone esle intelligent when stock prices are this high. However let's not get all excited shall we just because we have had one sell off. Truth be known we haven't even broke through the bullish trend channel that the S&P and DOW are in. In fact we aren't even clise yet. Even if we do (and that won't happen until about the 1725 mark) I won't be too eager to sell. I think that indeed we are due for a nasty pull back and for the leveraged idiots these small movements must be a little painful but for the intelligent trader they don't mean much. When you see only "up" for as long as we have seen it when you see a little "down" it can sure throw you off. Dollar to ralley strongly. Short the EURO at these levels.  

fuu's picture

Bonuses all around that shuttered prop desk.

stormsailor's picture

i've seen that chart pattern on the daily /es before, the famous dick dangle. if it is followed by a gap down and doesn't go up, it could turn into stampede little doggies

I Write Code's picture

I'd be fine with 12000, I think a reasonable number even under ZIRP would be lower than that.

And if interest rates returned to anything like normal, ... well, the US deficit would soar so high that I dunno what the equity markets would do, but pretending for a moment, I think 9,000 to 10,000 Dow would be generous.

Haager's picture

It's so easy to predict market behaviour on your behalf if you're part of the market-makers. 

Hey $gs and Dimon: Killing almost any TA-signals, breaking lots of supports and such is fun, right?

are we there yet's picture

Now Yellin will forget about taper and pump up QE until the currency starts to fail.

q99x2's picture

Goldman Sachs is responsible for the carnage. Militaries around the world need to take action against them.

shawnmike's picture

A tropical haven of natural beauty, the coastline of the province is skimmed by gentle coves and white sand beaches.Handmade leather jackets

prains's picture

dude, i think you spilt something on your pants

Disenchanted's picture

Hey Lloyd...

Fuck You!

Quinvarius's picture

Down another 30% and it will be merely very overpriced based on economic conditions.

kenezen's picture

After getting the word out at 1050 and later 1150 to be long, I wrote in my Blog and dated it in August of 2013 that 1660 -1720 one should take profit and exit I also said the market would go possibly higher then sideways thru the rest of the year and possibl;y into the first quarter of this year before going considerably lower!  I hold to that prediction. Lots of very good articles

J J Pettigrew's picture

Someday soon, being affilitated with Goldman Sachs will be similar to the red stain on a collar...( "dyed scarves had left a red stain on their collars," (China 1927))

By the simple fact that the malfeasance of the 07 debacle went unpunished, and perhaps even rewarded, a repeat is guaranteed.