This page has been archived and commenting is disabled.
US Stock Plunge Continues; S&P, Russell, & Dow Lose All Post-Taper Gains
For a brief moment this morning - following Jim Cramer's exclamation that anyone who is still bearish following the China Trust bailout is "stupid" - there was hope that the drama had stopped unfolding. However, it has not. JPY carry continues to be battered and that is dragging every levered-long trade lower from European bonds to US small caps. The invincible Trannies have collapsed and are now -3.25% in 2014; having risen more than 6.5% from the Taper decision day, Trannies have tumbled to a mere 0.8% gain. But the S&P 500 and Russell are catching down to the Dow's underperformance and have given up their post-taper gains. Rather stunningly, Discretionary and Homebuilders are now the worst performing S&P sectors from the taper. VIX has surged to touch 19% - its highest since October 9th. Treasuries are modestly bid (1-2bps at best) and the USD is flat (despite major swings in AUD, CAD, and JPY). Credit is trading back to 3-month wides and stocks are catching down.
Indices have collapsed - giving up all the taper gains in 3 days...
As Hombuilders and Discretionary collapse to worst performers...
And credit is rapidly giving up the post debt ceiling gains...
»
- 11153 reads
- Printer-friendly version
- Send to friend
- advertisements -
Even Fonestar is having a bad day today.
Heil Satoshi?
Yellen WILL print. And the Bond market WILL get spooked. There WILL be blood.
Bring on the presses...
Hmmm.
i can't wait until Friday.. Ben steps out and Janet steps in!
Bitcoin Exchange CEO Arrested For Money Laundering.
NYT / Hilsie leak in 3,2,1... Then K-Hen presses the "kill bear" button.
Could be related to: Feds Nab BitInstant CEO In Silk Road Bust, Charged With Laundering $1 Million In BTC
Still, $850 to $800 isn't exactly a monumental shift in Bitcoin terms . . .
I wish I could up vote this twice.
If you want your taper, you can keep your taper
The Fed will come out and say something positive on Wednesday and the markets will soar 500 points and all the bulls will tell us what chumps we are for not BTFD.
sadly you a right.
or they'll announce QE5 - (As the markets have boxed them in a corner as of now. QE or Crash!)
I think they'll let the US stock indices drop 10 to 15% and when the sheeples and media are just starting to scream "the sky is falling" they'll continue on as you describe.
Yeah right you retard.
Maybe, maybe not. Pretty ideal time to just MFGlobalize everyone right now with 100% of them convinced that no matter what happens, it will surely come right back.
One way to establish credibility is to allow for a full on market correction as you enter your new job "and say too bad" for the "stimulate my levered positions" crowd.
There is precedent for this...but you have to go WAY back to find it.
1992-1993 I think.
Interest rates have already busted a move...
now it's full reverse.
If the Fed still tapers (to zero at a date certain) then that's a lot of credibility in my view.
We'll see.
Yes but they will say ANOTHER $10 BILLION TAPER NEXT MONTH!!
Yes, we will.
How much further until the margin calls are thick enough to create a cascade? Enquiring minds want to know!
they'll be thick enough when they have the cover and support for another QE (or a decrease to the taper) IMHO, in today's over leveraged world it won't be nearly far enough.
edit: mis read your post, in response to it: don't worry about margin call cascades they'll just Corzine a few smaller over-leveraged bank assets and we'll continue on right? :)
The only thing I'm certain of at this point is that they're going to destroy the dollar. I have my opinion on how it may play out, but my opinion involves predicting what homo sapiens are going to do. I think that they're going to let the stock market go down to save the bond market, but who knows? I'm not sure how equities crashing will affect derivatives.
awthatsashame
Drop that bitch like a hot stone!
I had plans to get the interior in the Gulfstream redone so I could fly my friends to the Superbowl with dignity, like a man. Now the Dow is down again, the margin calls are soaking up my refurbish budget..
If I have to ride in a plane with torn seats, I couldn't live it down. I'll cancel the outing! So help me..
Please help.
Forward all donations to "Save Our Dignity"
PO BOX 3244
NY, New York, 10043
sorry but all of the money went to stop kitten juggling
Busted.. ;)
Wow it's almost as if the whole year end rally was window dressing or something to add on to the phoney fed induced rally we have had for the last five years.
ummm, it's only down 48.
It be HIV positive now
Since we have some quiet time before old Yeller takes the reigns, and the bears have time to play Hilsanbarf will probably have something to say soon.
Woke up to this story and thought, WTF?
http://money.cnn.com/2014/01/27/technology/sony-downgrade-junk/index.htm...
Seems like they finally fixed the printer.
ZH article on the selloff picks the bottom - AGAIN.
Yeah I was just thinking the same thing. ZH posts it, and the market goes vertical for the next hour.
Tyler don't pick bottom in public
I guess as long as it's a down day, I'm happy.
Why are US stocks doing better than everywhere else?
S&P only down 0.5%
FTSE -3.34%
Nikkei -2.5%
$75 Bil a month says they will.
I think another 50% fall is likely in the intermediate future, but from a higher level. Google´s CEO hit the nail on the head when he was warning about the ongoing wage erosion of the middle class. It simply means diminishing consuming ability and is bound to bite corporations badly sooner or later.
That all great and all but the middle class will be gutted to the bone before the stock market corrects 50%. They can slowly bleed you over many many years before any major robbery i.e crash..
IT'S NOW POSITIVE!!!
Couldn't see that coming...
BTFD is all
They´re pumping some big DOW dogs. 75% of stocks are down.
They´re pumping some big DOW dogs. 75% of stocks are down.
Transparent market reacts to Grammys. Right? Not pegged to Hollywood?
Will taper another ten billion leaving only one hundred twenty billion for the FED to give out. Don't like my math? Learned it on cnbc...
Here comes the PPT. The BTFD crew is on duty.
Perfect bottom tick. Good job ZH.
ZH did the same exact thing with the gold article today when the price hit $1280.. it dumped at the exact moment that piece was posted -lol
I'm going to start fading these articles... perfectly contrary!
so we are back in ze green, ze germans did it.
Burn, you Motherfuckers......................burn.
I am a bit dense, why was there a taper rally in the first place? I was under the impression that almost the entire stock rally since 09 was fueled by QE funny money. Why would tapering that money incite a bigger rally? With the idea that the economy is strong enough to stand on its own two feet?
In which case it would appear that stocks will rally for just about any reason. QE = good. NO QE = good. Bad news = good.
In other words, I would not refer to this as a taper rally, but just the continuation of a disconnected idiotic market. We know what stocks do when shit hits the fan, Venezuela is a good template.
But, But,.. The Beatles are coming back together. They are making Sgt peppers redux as we speak. The Hendersons will all be there.
I for one am starting to panic a bit; as the market drops my deltas are getting closer to flat, a few more of these down days and I may have positive deltas!
these are truly the end times.
Housing market is rolling over. Construction stats have been high but lagging the turn-down in sales. Dave Kranzler has been forecasting the downturn for almost a year now. Here's his latest take:
http://thenewsdoctors.com/december-existing-home-sales-the-housing-bear-roars/
The Fed will taper once more, but soon enough, that game of trying to make their balance sheet look nice will end, and tapering will end. Asset price declines will push their hands.
After the crash of 1929 it took two years to hit a bottom when the fastest communication was an extra large campbells soup can and a clothesline with a two inch diameter floated across the Atlantic on the ghost of the BEAGLE. The current day "gold standard" errr.. QE and online banking should speed up the bank runs by a factor of ten while Old Yeller blames The Bernanke for leaving her a post menopausal cum stain for a banking system jacked with reserves that BofA's Moynihan needs for 250b in mortgage loss writedowns - from 2008 alone at about the same time The Bernankes non-best seller "I traded my money inflator for a cock pump" will be 75% off list price, or a two for one on Amazombie.com with Greenspans "Map and the Territorie"