Bruised And Battered Stocks Wave Bye Bye Ben

Tyler Durden's picture

Asset-gatherers and talking-heads are in full panic mode. Stocks tumbled ince again today and there was very little "off the lows" talk. The "turmoil" panic in the hearts and minds of every Wall Street strategist palpable as the Fed failed to save us from another down day. Trannies, Russell, and the Dow are down around 5.5% from their highs; the S&P down around 4%; and the Nasdaq around 4.5% from its multi-year highs last week. Today's plunge of over 35 points the S&P futures from the "where are all the sellers, EM is fixed" post-Turkey highs at 1801 is a very sizable outside range day. Of course it was all about the ongong unwind of levered JPY carry trades as 102 becomes crucial to any bounce in stocks. VIX rose 1.7 vols to 17.5%; credit spreads popped notably wider post FOMC; EM FX turmoiled considerably lower and while the USD was stable (there was plenty of puking in AUD and JPY). Treasury yields tumbled to fresh 10 week lows (10Y -8bps at 2.66% at the lows). Gold and silver rallied post-FOMC and recovered yesterday's monkey-hammering losses.


Spot the Diffference - JPY crosses vs S&P 500


Most major indices have now lost post-December taper gains...


As yesterday morning's short squeeze meant we needed to auction back down...


Only Healthcare and Utilities remain in the green among the S&P 500 sectors from the Dec Taper... (with Consumer sectors crushed)


Gold and silver recovered yesterday's slam down...


EM FX was crushed off Turkey highs...


Treasury yields jumped 6bps higher on the Turkey news at their open and then just collapsed all night and accelerated lower post FOMC...


Since the December taper, it appears (once again) that stocks were the last ones to get the joke...


Charts: Bloomberg

Bonus Chart: Wondering how Fed asset "flows" and investor sentiment (and thus buying/leverage pressure) is related? @Not_Jim_Cramer shows this wonderful chart of investor exuberance getting ahead of itself as Fed asset growth rates slow...

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FuzzyDunlop21's picture

Last time there was a taper stocks popped a boner. Not so much this time bitchez! Where is your god now?

THX 1178's picture

hoo hoo hoo! Its crunch time bitchez!

Dr. Richard Head's picture

God I hope.  There are some that I know that are bringing cash out of the bank finally, expecting the the fan to spray some feces around very shrotly.  Ones who thought I was nuts a few years ago. 

kaiserhoff's picture

Ben Shalom kapute ist.

   Now how do we get rid of Barry the Fairy?

aVileRat's picture

Goodbye ben.


Time to see if the computer funds of today are smarter than the funds in 1987 * 1998.


TruthInSunshine's picture


The stock markets could decline!!! This would be the end of free market capitalism & hurl the world into a new dark age!!!!!

What will be do without financial engineering, derivatives, speculators & the churn & burn mechanism that actually produces nothing of tangible value and merely serves to shift fiat money from one pocket to another that is called Wall Street?!!!!

CheapBastard's picture

"Stock prices never drop," my realtor told me.

...oh, wait a sec.....

Osmium's picture

There hase NEVER, EVER been a better time to buy.  EVER.

slaughterer's picture

ES has a date with its 100DMA before any bounce can take place.

TeamDepends's picture

It was the best of times, it was the worst of times.

Charles Nelson Reilly's picture

Only the good die young? Or in this case a horrible fed induced correction.

walküre's picture

About time this baby learns how to walk on its own two feet.

This recovery is so real, stocks will reach new highs by EOY.

Either that or we start carrying toilet paper to the butcher in exchange for some meat.

one way or another no middle ground

HardlyZero's picture

Reality bites the FED in the tuchus.

BTW does anyone have any sexy/hot non-photoshopped pix of the FED head ? 

This may come in handy when SHTF...seeing a Yellin' Prune every day might nausiate the markets and cause a disturbance in the farce.   Hot Yellin' pix...  that might be worth their weight in Gold.  heh.

madcows's picture

It was a dark and stormy night...

Carpenter1's picture

As fun as this is to watch, it's FED created, therefore i dont believe its the real deal. Does anyone believe the FED will intentionally crash the market? 

Market= Economy(for the voting sheep) 

Anyone able toexplain why the FED would tell the market its not buying anymore?l

HardlyZero's picture

If they want to...if they want to.

Reminds me of these lyrics, Cities, David Byrne.

Think of London, a small city

It's dark, dark in the daytime
The people sleep, sleep in the daytime
If they want to, if they want to


I'm checking them out
I'm checking them out
I got it figured out
I got it figured out
There's good points and bad points
Find a city
Find myself a city to live in.

With the 10-year stuck going higher...its probably the right time...if they want to.

replaceme's picture

<- it was the best of times

<-it was the worst of times

Winston Churchill's picture

Margin calls, bitchez.

SheepDog-One's picture

Only takes a -5% drop for there to be real pain when everything is leveraged 30:1.... but alas we're about to have the min wage/unemployed sop in to bail out our debt...yea that sould work real well.

Spastica Rex's picture

Is the 30:1 descriptive, or hyperbolic?

I'm asking because I don't know.

SheepDog-One's picture

From what I've gathered from the banks and funds leverage is probably more like 40 in order to skim a dime off the top.

kaiserhoff's picture

Yes, often on the high end in bonds, because they are so safe;)

CheapBastard's picture

The recent postal rate increase was the final straw for the poor small business sap down the street. His retail biz just went Deep Six'd.


kaiserhoff's picture

Supposedly not unusual in Hedge Funds or the craziest banks like Deutsche, but they don't publish data in enough detail to really know.  Anyway, it changes constantly.  The really bizarre thing is that hedge funds are rarely hedged in any useful way.

Carl Popper's picture

They really should be called unhedged funds

fuu's picture

Bullish for typos.

EmmittFitzhume's picture

It's hard to get good Copy out fast enough...Unless you're Hilsenrath

buzzsaw99's picture

nice fake market

Rainman's picture

... it's a good thing I stopped Mrs. Rainman from shitcanning my Dow 10k hat !

buzzsaw99's picture


SheepDog-One's picture

QUICK! Uncouple from JPY!

Pareto's picture

"good afternoon everybody, its 4 o'clock on Wall Street - do you know where your money is?"  Why yes Maria, IF by money you mean gold - yes Maria ......I know exactly where it is.

nasa's picture

Let's see some serious blood in the streets.

SheepDog-One's picture

Hopefull in the form of Wall St bankters raining down from the sky.

HardlyZero's picture

Two top American Bankers commit suicide in London as one jumps 500ft from JP Morgan skyscraper and another hangs in home.

In last few days in the Daily Mail.


highly debtful's picture

I've got a question for the more economically advanced than me (that's about 99 % of you lot on this site, I suppose).

What's the deal with the Fed now doubling its stakes on tapering just when the EM's are starting to burn? Isn't this going to be a popcorn moment, because it'll be like throwing high grade fuel on the bonfire?  

What am I missing? Throw me a bone here, people.


buzzsaw99's picture

you can't look at it from the outside and make sense of it. if you could look at jpm's and gs's derivative positions then it would become clear to you.

Winston Churchill's picture

They are saving themselves ,and the USD , by throwing the rest of

the world under the bus.

Or trying to.

kaiserhoff's picture

Yes, it buys them time, until the next disaster.

HardlyZero's picture gives Christine and the IMF something to do.  or possibly the UN if things start getting out of hand.

Its a jobs magnet !

they are breakin' lots of windows now.

Rainman's picture

You are missing the $4.1 T Fed balance sheet full of crap....and growing.

SheepDog-One's picture

But soon the min wage/unemployed americans will be scrambling in to take the reins of the FED $4.1 trillion balance sheet, as directed by Dear Leader.

Overfed's picture

Muffuggers ain't gettin' a single worthless zinc penny of my munney. Fuck O'bomb-a, he can take his MyRA and shove it right up his ass.

SheepDog-One's picture

Then they can finaly get their world economic chaos and panic and bring in their endgame 1 world Goldman Sachs bank and 1 world currency. People used to think such talk was crazy.

Miffed Microbiologist's picture

I don't get it either. With HFT and all their other manipulations I can't understand how this faux market can ever plummet. Unless it's an intentional reaping.


gwar5's picture

I'm not an economist with a PhD but I spent the night in at Holiday in Express. 


I thnk the FED knows their QE is not working. By untapering, they shift the consequences of QE to the equity markets and EM's, short term. Insiders know what's coming and how to protect themselves. An equity crash will help the FED unload their UST on dupes with MyIRAs believing they are more safe. The EM turmoil is schadenfreude for the FED because they have been conspiring against the FED's fiat USD by moving towards an alternative currency. 


That's how I see it, if there is a rational explanation for what is going on. I wish other commentators more keen than me would chime in on this.