This page has been archived and commenting is disabled.

Stocks Suffer Worst Week In 19 Months; Dow Gives Up All "Taper" Gains

Tyler Durden's picture


The deer was back yesterday; but today "it's on..."


UPDATE: The S&P futures collapse a further 6 points in the 15 minutes of trading after cah markets closed...




Some context for the day: Stocks were slammed lower (TRAN -4.1%, Russell -2.5%, S&P, Dow, NASDAQ -1.8%); Treauries rallied 5bps or so on the day (but was stable during the US day session sell off);  Commodities slipped 0.5% with Gold the lone performer +0.35% today; The USD was unchanged on the day (but the JPY strengthen significantly along with AUD weakness).


S&P's worst week in 19 months...


Dow Transports worst day since September 2011...


Across the board stocks were slayed as dip-buying carry traders were uniquely absent for the second day in a row...

JPY ruled stocks...


As Stocks retraced most of the post-Taper gains...


VIX smashed almost 30% higher on the day to tage 18%


and weekly VIX saw the biggest jump since May 2010...


As the VIX term strcuture inverted (risks piling up before the lunar new year and trsut default in china?)



Gold - now the best performing asset since the Taper - diverged notably from Silver on the week as WTI drooped today but closed notably higher on the week... Gold now at 2-month highs.


Credit markets are now at 10-week wides with stocks back to Taper lows...


Charts: Bloomberg

Bonus Chart; The Nikkei 225 loses 15,000 for the first time in over 2 months... Abe will not be happy!


Bonus Bonus Chart: Well not really a chart but...


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 01/24/2014 - 17:07 | 4364243 kliguy38
kliguy38's picture

Its the cracks...........they're getting bigger and there's more of them.........not enough chewing gum

Fri, 01/24/2014 - 17:10 | 4364289 Say What Again
Say What Again's picture

Meet me at Scores!

Fri, 01/24/2014 - 17:40 | 4364482 freewolf7
freewolf7's picture

Is this what walking towards the exits looks like?

Fri, 01/24/2014 - 17:43 | 4364496 AmericasCicero
AmericasCicero's picture

nobody panic...NOBODY PANIC!!!!

Fri, 01/24/2014 - 17:53 | 4364530 NoDebt
NoDebt's picture

ZH missed their prediction on the market falling apart by 10 days.  What?  The Tylers can't call it any closer than that??  I need PRECISION, dammit!  PRECISION!  This ain't horseshoes or hand grenades.

Please try harder in the future.

Fri, 01/24/2014 - 18:27 | 4364646 mjcOH1
mjcOH1's picture

Where's the money honey when you need her....

Fri, 01/24/2014 - 19:39 | 4364729 aVileRat
aVileRat's picture

Comon, 4 posters suggested this since Monday. What do you want, a tweet ?

Margin call monday will either confirm the trend, or see a massive twist.




Fri, 01/24/2014 - 20:16 | 4364960 Wait What
Wait What's picture

<---- what Yellen's face looks like right now. "pour me a scotch George, it's gonna be a long weekend."

Fri, 01/24/2014 - 17:12 | 4364313 SheepDog-One
SheepDog-One's picture

Not enough fingers to stick in all the dykes!


Fri, 01/24/2014 - 17:17 | 4364351 Future Jim
Future Jim's picture

Why today?

Fri, 01/24/2014 - 17:19 | 4364355 redpill
redpill's picture

And why are they always named Janet?  

Fri, 01/24/2014 - 17:34 | 4364439 max2205
max2205's picture

Is it too early to start saying sell the fucking rips?

Fri, 01/24/2014 - 17:17 | 4364345 UncleBubba
UncleBubba's picture

typical first post on this site every time the market goes down over 2% in two days...  But, as everyone should've learned by now...  BTFD

Fri, 01/24/2014 - 17:22 | 4364385 SheepDog-One
SheepDog-One's picture

Hey knock yourself out pal, pile in all your retirement and kids college funds as much as you can....personally I wouldn't touch this clownshow with a 20 foot pole.

Fri, 01/24/2014 - 18:32 | 4364664 Overfed
Overfed's picture

Aww...hell, Bernyellen and Co. will just POMO the fuck out of the "market" next week and everything will be right as rain.

Fri, 01/24/2014 - 17:29 | 4364395 Say What Again
Say What Again's picture

I think there are some new interpretations for BTFD


Beat the Fu$&^% Dear

Beat the Fu$&^% Duck  (If you watch TV)



Fri, 01/24/2014 - 17:40 | 4364473 UncleBubba
UncleBubba's picture

be careful of them deer...

Fri, 01/24/2014 - 17:40 | 4364474 UncleBubba
UncleBubba's picture

be careful of them deer...

Fri, 01/24/2014 - 17:25 | 4364399 SAT 800
SAT 800's picture


Fri, 01/24/2014 - 17:25 | 4364407 LetsDoThisAlready
LetsDoThisAlready's picture


obviously, the Fed could pump more but, but history rhymes, look at this graph...

Fri, 01/24/2014 - 17:34 | 4364445 UncleBubba
UncleBubba's picture

funny video (in the context of the article), and a nice chart overlay.  I guess we just have to wait and see.

Fri, 01/24/2014 - 17:05 | 4364246 DeadFred
DeadFred's picture

Dang, I was planning on making a snarky comment about how many cents the S&P closed off the lows to mock the TV cheerleaders but I don't get to.

Fri, 01/24/2014 - 17:07 | 4364261 Slave
Slave's picture

Cancel your cable. Free your mind.

Fri, 01/24/2014 - 17:36 | 4364440 PacOps
PacOps's picture

1978, knock at the door. 11 yr old stepdaughter answers it. Cable guy offering to run cable service to the house - no charge. She told him we did not own a TV. She said his jaw hit the floor in disbelief. ... He finally left shaking his head. (haven't owned one since '66 - we were on Compuserve in 78).

Fri, 01/24/2014 - 18:58 | 4364735 dirtscratcher
dirtscratcher's picture

I did that about five years ago. Amazing how much better my life has been in a variety of ways. 


Sat, 01/25/2014 - 04:34 | 4366004 -NaN-
-NaN-'s picture

Going on 7 years. Lucidity is wonderful.

Fri, 01/24/2014 - 23:53 | 4365563 Future Jim
Future Jim's picture

That sounds great, but I have started encountering people who think they are independent minded and ouside-the-box because they don't have cable, and yet, they believe EXACTLY what cable is promoting. Of course, you can't convince them of that because they don't watch cable. It seems like some kind of final stage in the long running propaganda campaign by the self proclaimed elites.

Fri, 01/24/2014 - 17:07 | 4364248 yrad
yrad's picture

Where the FUCK is Jon Corzine!?!?!?

Fri, 01/24/2014 - 17:10 | 4364296 MsCreant
MsCreant's picture

Maybe he has been vaporized? 

Fri, 01/24/2014 - 17:26 | 4364409 SAT 800
SAT 800's picture

we can only hope; dear lady; and that it wasn't painless.

Fri, 01/24/2014 - 17:48 | 4364516 NoDebt
NoDebt's picture

Still floating quietly around in the bowl.  Some turds just won't go down no matter how many times you flush.

Fri, 01/24/2014 - 17:07 | 4364250 One And Only
One And Only's picture

Of the lows, victory for the bulls.

Fri, 01/24/2014 - 17:07 | 4364251 Harry Dong
Harry Dong's picture

out a popcorn/...

Fri, 01/24/2014 - 17:07 | 4364258 redux2redux
redux2redux's picture

Cue the deer

Fri, 01/24/2014 - 17:09 | 4364286 Harry Dong
Harry Dong's picture

was done earlier (and rightly). Better than the Hindenburg Omen.


Fri, 01/24/2014 - 17:13 | 4364326 stant
stant's picture

we should name the dear heisenberg, and call it the hesinberg omen

Fri, 01/24/2014 - 17:18 | 4364358 Say What Again
Say What Again's picture

I don't know why, but I can't seem to get Breaking Bad out of my mind.

Fri, 01/24/2014 - 18:42 | 4364691 Hindenburg...Oh Man
Hindenburg...Oh Man's picture


Fri, 01/24/2014 - 19:32 | 4364825 vulcanraven
vulcanraven's picture

You rang?

Fri, 01/24/2014 - 17:07 | 4364259 HedgeAccordingly
HedgeAccordingly's picture

But i thought taper was not gonna affect the market..

Fri, 01/24/2014 - 17:20 | 4364365 Papasmurf
Papasmurf's picture

They didn't say which market.

Fri, 01/24/2014 - 17:08 | 4364263 SgtShaftoe
SgtShaftoe's picture

next will be the death squads.  Gentlemen, prepare to defend yourselves:

Fri, 01/24/2014 - 17:11 | 4364302 Harry Dong
Harry Dong's picture

gentlemen mostly got shanked by NAFTA. It's up to the ladies to protect their men now....

Fri, 01/24/2014 - 17:08 | 4364266 Cursive
Cursive's picture

About another 250 days like this and maybe we can get back to reality.

Fri, 01/24/2014 - 17:09 | 4364270 Dr. Engali
Dr. Engali's picture

I turned on CNBC to see the close and I could take a whole two minutes of it. I don't know how people stomach that mind numbing garbage.

Fri, 01/24/2014 - 17:15 | 4364334 SheepDog-One
SheepDog-One's picture

It's a form of hypnotic psychosis.

Fri, 01/24/2014 - 17:22 | 4364382 Papasmurf
Papasmurf's picture

Where's Maria when you need her?  She could have ask a talking head "Where would you be putting new money to work in these markets?"

Fri, 01/24/2014 - 17:22 | 4364387 Yen Cross
Yen Cross's picture

  I agree doc. Did you see that stupid douche in the closing panel that was calling for a 3.75% T-10 by years end. She was recommending buying consumer staples stocks.

  A 3.75% T-10 would blowout Corps. that are levered up in cheap money and destroy the R/E market. I about threw a brick through my TV screen. I can't even make to the 2 minute mark.

Fri, 01/24/2014 - 17:08 | 4364272 css1971
css1971's picture

No, it aint. Tyler, you're just over tired and over impatient for the games to end.

It's on when there's a 2% down day followed by a 3% down day followed by a 4% down day. Then it's ON.

Fri, 01/24/2014 - 17:20 | 4364374 LetsDoThisAlready
LetsDoThisAlready's picture

According to this graph, it may just be on like donkey kong, gotta start somewhere, and this isn't just rhyming, it's the same pattern....

Sat, 01/25/2014 - 04:40 | 4366013 -NaN-
-NaN-'s picture

I agree, but the Tyler, like many of us are a bit tired of watching our worthless shiny rocks get beat down by the lifeblood indices that are the economy /s.

Let us enjoy our 15 minutes, in peace, would ya?

Fri, 01/24/2014 - 17:09 | 4364275 fonzannoon
fonzannoon's picture

BTFD (ducking and getting hit by empty beer bottles)

Fri, 01/24/2014 - 17:08 | 4364276 Onthebeach
Onthebeach's picture

Please inform Dr Yellen that her rehab patient in 75B is responding poorly to the QE taper and has been abusing nursing staff, pounding on the door of their room and threatening self-harm.  

Fri, 01/24/2014 - 17:13 | 4364322 MsCreant
MsCreant's picture

That thing in there on life support is a zombie. It keeps making more zombies, the longer it is left undead. It eatz brainz and anything else healthy in an economy.

Fri, 01/24/2014 - 17:09 | 4364288 LukeWorm
LukeWorm's picture

Dow never again above 16000 !

Fri, 01/24/2014 - 17:15 | 4364331 MsCreant
MsCreant's picture

Hyper-inflation my precious...

Fri, 01/24/2014 - 18:12 | 4364599 stormsailor
stormsailor's picture

and your little dog, too.

Fri, 01/24/2014 - 17:11 | 4364304 BudFox2012
BudFox2012's picture

Just looked at the Market Watch Dow Chart.  What does a red down arrow mean, and why is today's total number a lot less than it was yesterday?  I don't understand what this means.  I thought the dow always went up regardless of what happens? </sarc>

Fri, 01/24/2014 - 18:12 | 4364596 MeMongo
MeMongo's picture

I think it means "bullish" ;)

Sat, 01/25/2014 - 04:46 | 4366018 -NaN-
-NaN-'s picture

Dont try and figure it out, just move along, nothing to see here. You need to visit where you are safe, and it will all make sense after a while.

Fri, 01/24/2014 - 17:11 | 4364308 HaroldWang
HaroldWang's picture

Can't believe you wasted the deer yesterday! -300 Dow day should always get the deer. Should be a steadfast rule around here IMO.

Fri, 01/24/2014 - 19:55 | 4364897 frankthomaswhite59
frankthomaswhite59's picture

name the deer...

someone above suggests it be

named hesinberg.

I'd go with Janet

Fri, 01/24/2014 - 17:12 | 4364310 ebworthen
ebworthen's picture

Some Hag from Merrill Lynch was on CNBC saying this was a great buying opportunity.

Funny how those parasitic fund managers always talk their book regardless of fundamentals.

Fri, 01/24/2014 - 17:18 | 4364353 MsCreant
MsCreant's picture

Was it Janet Yellen, because that hag CAN buy the whole thing...

Fri, 01/24/2014 - 17:39 | 4364467 mayhem_korner
mayhem_korner's picture



"Hag" is one of the most descriptive three-letter words in the language.  +1 for capitalizing

Fri, 01/24/2014 - 19:57 | 4364900 frankthomaswhite59
frankthomaswhite59's picture

it is a proper name

Fri, 01/24/2014 - 19:40 | 4364843 RafterManFMJ
RafterManFMJ's picture

Some Hag from Merrill Lynch was on CNBC saying this was a great buying opportunity.

You're dumb enough to believe what the TV or the .gov feeds you, you get what you got a-comin'.

Fri, 01/24/2014 - 17:14 | 4364319 Ness.
Ness.'s picture

Equity futures still getting sold after close.  Me likey.  Last one out is a rotten egg, bitchez!

Fri, 01/24/2014 - 17:16 | 4364341 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Keeping it all in context, I believe that the NASDAQ was still lower as recently as the 13th of January, and again the 6th of Jan. On days like this your talking heads on CNBC fail to point out that we had consistent  DAILY increases of .30 to 1.5 percent on the NASDAQ....and acted as if this were normal.

On a different note, the e mini 100 NASDAQ futures are extremely ugly even after hours.

Fri, 01/24/2014 - 17:18 | 4364346 Surging Chaos
Surging Chaos's picture

Two deers in 10 days and now DK makes his triumphant return.

The Bernank couldn't have timed his exit any better. Get to work Mr. Yellen!

Fri, 01/24/2014 - 17:17 | 4364347 asscannon101
asscannon101's picture

Aaaaaaaaaaaand its gone.....

Fri, 01/24/2014 - 20:09 | 4364939 Miffed Microbio...
Miffed Microbiologist's picture

God wouldn't that be funny. Have a government worker friend retiring this week at 55 on 97% of salary. He's been rubbing my nose in it for a while. God, I want some payback!


Fri, 01/24/2014 - 20:24 | 4364987 Hulk
Hulk's picture

Jesus Miffed, there has go to be something in one of those little petri dishes of yours you can stick him with !!!

Fri, 01/24/2014 - 21:04 | 4365092 Miffed Microbio...
Miffed Microbiologist's picture

Yes hulk dear, it is so frustrating having such weaponry at ones disposal and so many worthy of it use.

Wow, a Flowers By Irene truck just pulled up outside the lab. Maybe some lucky girl's hubby remembered an anniversary!


Sat, 01/25/2014 - 07:15 | 4366175 BeetleBailey
BeetleBailey's picture

Kick em in the fucking balls

Fri, 01/24/2014 - 17:32 | 4364350 SheepDog-One
SheepDog-One's picture

Ol're certainly no magical Princeton PhD foremost expert on the Great Depression and are touted as having 'all the answers''re just an old economist retread, stamped 'approved' by the Magical Negro or not.

Fri, 01/24/2014 - 17:21 | 4364371 25or6to4
25or6to4's picture

Now now, I'm sure according the MSM talking heads this is nothing but a little bit of "profit taking". Back to normal on Monday.

Fri, 01/24/2014 - 17:30 | 4364372 cougar_w
cougar_w's picture

1.8% down, nuther 71.8% to go ...

no wait I'm on a roll...

Fri, 01/24/2014 - 17:44 | 4364477 SheepDog-One
SheepDog-One's picture

When the markets are leveraged like they are, only takes a few% to wipe out institutions with 20% leverage and we know that is really more like 50% leveraged at this point. 2% drop and TBTF are feeling major pain.

Fri, 01/24/2014 - 17:23 | 4364386 SillySalesmanQu...
SillySalesmanQuestion's picture

Hmmmm...two down days in a row and no rally? Did the PPT's terminal freeze up, freeze solid from the cold, or did Hell just freeze over....

Fri, 01/24/2014 - 20:35 | 4365027 MeelionDollerBogus
MeelionDollerBogus's picture

Standard & Polarvortex! :-)

Fri, 01/24/2014 - 17:23 | 4364389 walküre
walküre's picture

get used to it

Fri, 01/24/2014 - 17:24 | 4364393 papaswamp
papaswamp's picture

Woooo futures getting slaughtered in after hours....

Fri, 01/24/2014 - 17:27 | 4364396 lakecity55
Fri, 01/24/2014 - 17:24 | 4364398 madbraz
madbraz's picture

Zero coupon long bond by far the best performer since the taper:  +7%

Fri, 01/24/2014 - 17:25 | 4364404 SheepDog-One
SheepDog-One's picture

If this shitshow keeps going down for a while, watch all the BTFD'ers tune change to 'Gosh, sure am glad I saw it comin and cashed out at the top!'

Fri, 01/24/2014 - 17:34 | 4364419 jtz5
jtz5's picture

We are 3% off the all-time highs, not exactly a cause for celebration. We have another 72% to go!

It's amazing what Bernanke did to investors' psychology where 3% is the end of the world. What a complete douchebag.

Fri, 01/24/2014 - 17:35 | 4364447 SheepDog-One
SheepDog-One's picture

Well not really....when you consider the shitshow is MASSIVELY leveraged, it only takes -5% drop to wipe out 20% leverage, and most banks and funds are leveraged far beyond that.

Fri, 01/24/2014 - 17:33 | 4364436 Daisy Duke
Fri, 01/24/2014 - 17:59 | 4364561 ebworthen
ebworthen's picture

Tight stuff, thanks.

"Something's got to give!"

Fri, 01/24/2014 - 17:37 | 4364454 skbull44
skbull44's picture

Is it time for the 'untaper' yet?


Fri, 01/24/2014 - 17:41 | 4364483 AmericasCicero
AmericasCicero's picture

Damn!  Just when I was about to invest! /sarc

Fri, 01/24/2014 - 17:44 | 4364494 disabledvet
disabledvet's picture

that "dollar index" is anything but. the moves in the Pound and Euro the past few months have been tremendous. Having said that people need to dust off their "Japanese Playbook" because that yen maintained an awful lot of strength right up until just a couple of years ago.

Having seen commodities get annihilated last year save natural gas and oil...why should I be bullish here?

The Fed could "do a 180"...and go back to QE...but the verdict is in on that. "Not growth supportive."

Taper might really be the answer.

We'll certainly find out next week.

Fri, 01/24/2014 - 17:47 | 4364507 Spungo
Spungo's picture

They're inflating the stock market at a rate of 75 billion per month and the shit still goes down. What would this look like if they completely stopped?

Fri, 01/24/2014 - 17:49 | 4364515 thismarketisrigged
thismarketisrigged's picture



i said yesterday i would not be fully convinced until i saw something like this yesterday, and sure enough today was awesome, stocks down big across the globe on heavy volume.


i still can not be fully convinced just yet, but it was deff nice to finally see the day after a sell off follow through with an even bigger one rather than give back all the losses and then some gains.


its nice to see the central banks across the globe causing chaos in emerging markets.

Fri, 01/24/2014 - 17:54 | 4364528 buzzsaw99
buzzsaw99's picture

fitting. donkey kong isn't a real donkey and this isn't a real market.

These aren't the droids you're looking for. [/obi wan]

Fri, 01/24/2014 - 17:52 | 4364532 25or6to4
25or6to4's picture

Whoooo, I don't think I've seen futures like that since early 09'. Think we'll see legislative action by the end of next wert? TARP 2.0 maybe. But who needs congress when Obummer has the power of the pen.

Fri, 01/24/2014 - 18:27 | 4364647 notquantumdum
notquantumdum's picture

It must have been pretty ugly in equities today.  My bear put spread calendar combination on SPY went up 21% in the last 24 hours or so!

Fri, 01/24/2014 - 20:26 | 4364992 MeelionDollerBogus
MeelionDollerBogus's picture

hell, hvu which doesn't even have expirations like options went up 17%, uvxy 18% (again, not even the options)

Fri, 01/31/2014 - 16:25 | 4389135 notquantumdum
notquantumdum's picture

Wow, you have to be a glutton for punishment if you own those two securities for anything but daytrading.  From what I can tell those two securities own very short-dated futures, and they are constantly rolling into slightly longer-dated [but still very-short-time-until-expiration] futures.  That is a perfect recipe for losing massive amounts of money due to time-decay losses, if you hold these overnight, in my opinion.

Instead of doing that, I like to own bear put calendar combinations where I own an equal number of long-until-expiration deep-in-the money puts,   even longer-until-expiration out-of-the-money puts, and a short position against out-of-the-money very-short-time-until expiration puts; all on the same underlying security.  This stategy requires frequent readjustment [especially if the underlying security rallies], but it allows one to profit from a selloff in the underlying while also capturing some THETA GAINS instead of only losing theta due to the huge portion of value apparently comprised by nothing but time value which will quickly decay with securities like the two you have mentioned.

PS -- DANGER, WILL ROBINSON!  Most people lose their a$$es trading options due to ignorance.  Get educated first or don't trade options!

Fri, 01/24/2014 - 18:32 | 4364663 25or6to4
25or6to4's picture

Wiley Coyote who had been running off the cliff for awhile now has just looked down and seen nothing but a far away canyon.

Fri, 01/24/2014 - 18:47 | 4364708 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

That was an ugly close. I haven't seen one like that in a while, where the downward pressure continues after hours so aggressively. 

Fri, 01/24/2014 - 19:42 | 4364854 I Write Code
I Write Code's picture

You sure post a lot of charts!

And they don't mean squat for two reasons, first the 200ma for the Dow is down at 15400 so we can lose another 500 points and *stabilize* down there, and it still means squat, and we can dip another 400 points or so below temporarily and it STILL doesn't mean squat.  Second, the market is totally controlled by the Fed and if Ms. Yellen let this go so far, either she fixes it next week or else this was all *planned* because the upside had gotten out of control.  But you knew that.

Fri, 01/24/2014 - 20:21 | 4364978 MeelionDollerBogus
MeelionDollerBogus's picture

buy tha muthafuckin dip, muppets!

Fri, 01/24/2014 - 20:32 | 4365019 Clycntct
Clycntct's picture

But I didn't know the truth was going to be so painful.
I can't handle the truth.
Now where's my I-something so I can stick it in my mouth and suck on it.

Fri, 01/24/2014 - 20:54 | 4365062 Oliver Klozoff
Oliver Klozoff's picture

How's Hugh Hendry?

Fri, 01/24/2014 - 22:44 | 4365390 Mad Muppet
Mad Muppet's picture

Best grab my umbrella....gonna be banksters coming down like cats and dogs. Let it rain, sez me.

Do NOT follow this link or you will be banned from the site!