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Dow Dumps For 5th Day In A Row But Bonds & Bullion Banged
Following the European close, US Treasuries sold off with yields rising 4-5bps (though 2Y outperformed, rising only 1bp on the day) despite chaotic panic selling in the March T-Bills. Stocks dead-cat-bounced with the same timing - find the day's lows around the European close as the S&P and Russell lost all their gains from the Taper decision over a month ago. This is the first 5-day losing streak for the Dow since September. Once the indices had reached unchanged and removed some stops, the selling began as despite a lower close for VIX (after tagging 18% early in the day), stocks tumbled into the close. The USD ended the day unchanged, despite major swings in AUD, CAD (higher) and JPY lower. Commodities slipped lower all day with some 'normal' illiquid moves led by weakness in Gold and silver..
Today's stock bounce started as the S&P and Russell hit unch from the Taper...
but faded notably into the close...
As always JPY was in charge but the close was very weak suggesting tonight could get ugly for carry-traders...
And bonds were sold this afternoon (and were not bid as stocks tumbled)...
and gold and silver also lost ground today...
The USD ended unchanged but hid a lot of volatility across the majors...
Charts: Bloomberg
Bonus Chart: The markets remained quite uncorrelated overnight but once the US opened everything synced up...
Bonus Bonus Chart: AAPL's demise has taken the NASDAQ to pre-Taper levels...
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I fucked up today. Where were those god damned BTFATH today?
They bought the dip, in $vix.
We have another 900+ points to go in the downward direction before we even hit "correction" territory.
What's the average market leverage at today, around 30%? Then stocks only need to drop 3% for participants to feel real pain. All about the leverage.
gotta love margin monday.
Apple was horrible, but nobody should be shocked. I'm guessing this is the RIM moment for Apple, and validates Ichan's lower growth argument. Much like rest of the tech sector, no confidence or trust in american tech means no eyeballs & totchki purchases. The faster MoMo's get their head around the fact tech is now a commoditized business like kiwi's & peaches, all the better: bubble deflates and the dot.com kiddies can go back to doing productive applied sciences vs. building the next chess-bot.
Onwards I guess, nothing should be shocking tomorrow or wed if there is a dead cat. Overnight it's all about the China backdoor bailout and if they use the Trust as a anti-taper suicide vest vs. Yellen. I'm guessing the currency reserves in the Asian "tigers" are getting pretty shallow right now ex-life lines.
Where were those god damned BTFATH today?
They left the Casino with Elvis.
Sheeples around me are confused, asking what's going on with this stock market, and when will this aberation end and get back to normal with indexes up 1% every day?
Less than a week?
Those sheeples just need to be patient.
Could be, or maybe it's been decided the complacent sheeple will take a nice 10% shearing here.
I don't think anyone's really ready for that just yet. There's still plenty of empty chairs.
Did you tell them there being fleeced before the slaughter?
can you elaborate? Perhaps i am masochistic, but I really enjoy stories about their stupidity-induced pain and suffering.
They heard it from the E*Trade baby....making wild stock market riches is easy as just mashing the buy button fast as you can!
I paraphrased a few ZH headlines from this morning to a co-worker of mine like this, and I seriouly think it shook him. Thought i saw a tear.
Yeah, I used to do that too. Now after looking like an idiot for 5 years I have learned to keep it to myself
screw that... I am not looking stupid; I don't have the balls to short this charade.
not yet....
Not many people have the balls to short this "market". Only the ones who would step in front of a moving freight train
http://www.collegehumor.com/video/6477219/remix-e-trade-baby-loses-everything
Gotta love that E*Trade baby! So cute... like taking candy from a...
The Tape was clearly tempered by the tip of the taper.
Free beer tomorrow.
ECB thinking of cutting deposit rate to -10bps soon...When a central bank charges for deposits, there is no f... way gold will rally. We first need to see central banks paying banks to keep monies in the system, before we see the real rally. Think about it.
I'm down about a month's salary... fuckers...
thank god my options only expire in 2015 :) By than China will have bought all the gold for sure!
Even Kevin Henry can't get it to go green . . .
What the hell is going on? Stawks aren't supposed to go down. The Bernank said so.
Bulls getting blown the fuck out.
Buckle up. The volatility is going to be much higher this year than last.
Apple feeling some pain on poor earnings now.
Apple down 5% afterhours already. That will tank the markets tomorrow if it stands up.
edit: down over 6% and still falling only 5 minutes after releasing results.
meh. "first normal day in years."
Bonds kill everybody.
Go ahead..."QE too."
See what happens.
http://www.youtube.com/watch?v=cL9KUt5aNZo
"Virgin Galactic" now...
..
I'll pat myself on the back. I put in a 2% trailing stop on my silver miners last night because I didn't like the look of the technical indicators. I managed to jump out at a 2% loss while the stocks closed at about 5% loss. Locked in about 15% profit since December. I'll probably buy the same companies a week later or tomorrow or next month.
Good luck buying back those stocks!
Added some silver today. :-) Thanks!
Intellectually, I'd love to make a bet on VIX, but it's too da mn manipulated for my taste. I've lost a small fortune the last several years on UVXY and TVIX. Still best strategy right now would be to buy UVXY, ride it up around 40-45% (don't get too greedy), sell and short while the manipulators slam it back down. Sadly, I no longer have the stomach for it. Life is too short, and I value a good night's sleep.
I'm right there with you, it's pretty sad when turning your cash into silver and bullets is the best you can do with it - but hey it could be worse I'll take the silver.
If you are going to throw money away, stop messing with the VIX, try the FAZ or TZA.
The "market" is wholly manipulated, failure is no longer possible...
faz & tza don't move nearly as well as hvu & uvxy. I'd never pick faz, the 3x inverse that sometimes isn't inverse.
Bite the big Apple, don't mind them maggots!
Mr Softie still got game...
A "market crash" is required folks. Uncle SAM needs to fund some liabilities and he doesn't like the current cost of capital. It's a "debt is money system after all, so if you have money in the system, you will buy treasuries, yes you will buy treasuries...
"Life is too short, and I value a good night's sleep."
Place "stop" or "trailing stop" orders. I screwed this up today when buying the VIX because I'm a retard. I was up a few dollars and then it went south and I was down a little. What I should have done after it went up was put in a stop order just above the buy price. If it starts to go down, the stop would kick in and I would jump out before the price goes below what I paid.
"flash crashes" coming?
Been there, done that. Sounds good in theory, but my execution was lousy. I'll pass. Best of luck to you. I'm sticking with gold, silver and lead.
Actually when you place limit & stop orders, you show your poker-hand. All the HFT's will re-arrange their orders, when & pricing, and lot-size, to screw up your order now they can see it.
Paper "gold" is just another financial "instrument" bearing counter-party risk, and fluctuates with the ebb, and flow of the margin tide.
It's not until the "risk" becomes realized, that the true price of gold will be realized.
The comex is to gold, what a 2013 quarter is, to a 1950's quarter.
if I didn't knows better I'd says this here iz maniperlated!
Tomorrow COMEX options expire so expect another attempt to slam PMs in the morning... Should be interesting as there is some indication the metals market is reaching escape volocity... Personally, I would have bet this game would have ended before now... shows what I know.