Amazon Drops 10% - Triggers SEC Short Sale Rule

Tyler Durden's picture


Despite the best efforts of CNBC to have every bull on Amazon explain how great it really is and how they could enable to magical profit machine any minute if they so choose, the hedge fund hotel stock du jour is now down 10% and Bloomberg headlines blare:

  • *SEC Short Sale Rule 201 is in Effect : AMZN (NASDAQ)

Last night's algo-ramp to VWAP (on rising Prime prices?) is a long-distant memory now...


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Fri, 01/31/2014 - 13:47 | 4388503 Pheonyte
Pheonyte's picture

I sense something, something I haven't felt since ... 2008.

Fri, 01/31/2014 - 13:51 | 4388517 Truther
Truther's picture

Ditto... BUT it feels creepier

Fri, 01/31/2014 - 13:59 | 4388536 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

As I watch the markets teetering and read about Bundasbank endorsing bailin and the US enacting stage one of its program to spike demand for UST, while bankers hang themselves in droves. I've been having this "old man feeling" even though Im not grey yet.


I keep catching myself staring out windows, but I don't shake my head in disbelief quite the way I used to.


I don't even want to yell at the idiots anymore.  This is just what they do.

Fri, 01/31/2014 - 14:23 | 4388646 max2205
max2205's picture

10 % short sale rule?  What a fucking hlf nus bbby and all the gapper downs over 20%...never heard this rule invoked


Fuck you wall st

Fri, 01/31/2014 - 14:26 | 4388663 jbvtme
Fri, 01/31/2014 - 16:39 | 4389212 geminiRX
geminiRX's picture

Clearly schizophrenic and off his meds.

Sat, 02/01/2014 - 05:19 | 4390877 limit_less
limit_less's picture

"and read about Bundasbank endorsing bailin " 

Either the Buba is honestly the bad guy OR they are trying to wake people up to what is coming and hope they reject the notion which will force governments to default.

I am not sure about the Buba. Either they are the shining light of economic liberty is a world of madness OR they are playing their part in the pantomime.

Fri, 01/31/2014 - 13:57 | 4388545 AlaricBalth
AlaricBalth's picture

How is this for guidance: Amazon says Operating income is forecasted to be between a loss of $200 million and a profit of $200 million in the first quarter of 2014.

Jeff Bezos was quoted as saying, "We may make money. We may lose money. I feel strongly both ways. And besides, its all about sales, sales, sales. Earnings are so old economy."

Fri, 01/31/2014 - 13:59 | 4388564 SoilMyselfRotten
SoilMyselfRotten's picture

That'll teach 'em to accept Bitcoin

Fri, 01/31/2014 - 14:04 | 4388591 Frozen IcQb
Frozen IcQb's picture

I wish Interactive Brokers would change the “Red Short Sale Restriction” Icon to a Yellow Smiley Face

Fri, 01/31/2014 - 14:09 | 4388607 SAT 800
SAT 800's picture

Jeebus; don't mention that; we'll have megafone numbers on here in a hot minute explaining it all to us and calling us idiots at the same time.

Fri, 01/31/2014 - 14:12 | 4388616 graneros
graneros's picture

Please let sleeping dogs lie.  I've had enough of that particular topic and its biggest ZH cherleader.  No need to say the magic word and wake "him" up.  If he's not sleeping then just let him trot merrily down the silk road wagging his tail.

Fri, 01/31/2014 - 14:18 | 4388628 Dr. Engali
Dr. Engali's picture

Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin BitcoinBitcoin Bitcoin  Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin Bitcoin

Fri, 01/31/2014 - 14:27 | 4388660 graneros
graneros's picture

Oh shit Doc.  Now you've gone and done it.  I didn't give you the red arrow but I will if he shows up.

Fri, 01/31/2014 - 14:29 | 4388667 Dr. Engali
Dr. Engali's picture

Lol...I have to do something to pass the time on an otherwise dreary day.

Fri, 01/31/2014 - 14:48 | 4388726 pods
pods's picture

If you are close to Wallstreet, you can always grab your banker proof umbrella and go for a walk?  

For me, this time of the year sucks dog balls. Dreary, cold, hell we got fucking snow. Too cold to dig for gold or fish at the beach.  

I am going to ask the president to use an EO to get rid of this time of the year, as it is unacceptable that we should have to deal with the winter blues.

And maybe a pony too?


Fri, 01/31/2014 - 14:53 | 4388739 SoilMyselfRotten
SoilMyselfRotten's picture

You need only repeat it 3 times in the mirror, Fonestar, Fonestar, Fonestar

Fri, 01/31/2014 - 14:56 | 4388742 superflex
superflex's picture

His posts were pretty tame today.  Nobody got called a pussy.

Must be on some new meds or mom broke down and bought some more Hot Pockets and Capri Sun.

Fri, 01/31/2014 - 14:51 | 4388734 frenzic
frenzic's picture

yeah look at the smashing succes overstock turned out to be


Fri, 01/31/2014 - 14:15 | 4388627 Oh regional Indian
Oh regional Indian's picture

Well he is right in that the game is now to eke margin out of supply chain mechanization...see their new warehouses. 

So he needs to move inventory, this is the cliff edge of the supply side paradigm.


Fri, 01/31/2014 - 14:45 | 4388705 Spastica Rex
Spastica Rex's picture

Let's also not forget the Mr. Bezos and his executives are doing very well.

Priorities, my friend.

Sat, 02/01/2014 - 05:31 | 4390882 limit_less
limit_less's picture

"Jeff Bezos was quoted as saying, "We may make money. We may lose money. I feel strongly both ways. And besides, its all about sales, sales, sales. Earnings are so old economy."

Love It

At some point Amazon is going to have to increase prices and then what? Sales are going through the floor.

There is no way this company is ever going to make money.

They are big because they dont make money. When they charge more they are going to sell less. Simple as that.

There is no future in Amazon.

Fri, 01/31/2014 - 13:53 | 4388519 Bearwagon
Bearwagon's picture

Yes, a disturbance in the farce, not that great, but quite notable.   ;-)

Fri, 01/31/2014 - 14:07 | 4388600 SAT 800
SAT 800's picture

You're kind of an odd lookin fella, but I like the way you think.

Sat, 02/01/2014 - 01:21 | 4390676 jerry_theking_lawler
jerry_theking_lawler's picture

sorry, that was me picking my nose....did i bump you in there?

Fri, 01/31/2014 - 13:52 | 4388523 TideFighter
TideFighter's picture

Suddenly, all of the quadcopter deliveries stopped...the Booomba's space program stopped, monorail plans stopped...

Fri, 01/31/2014 - 14:09 | 4388605 Headbanger
Headbanger's picture

Oh don't tell me we won't be getting any flying cars either!

Fri, 01/31/2014 - 14:47 | 4388718 Spastica Rex
Spastica Rex's picture

But iif you live in Seattle, you can have this.

It's a world-class substitute for the elevated highway that it's replacing.

You can also have a monorail.

Fri, 01/31/2014 - 14:58 | 4388759 superflex
superflex's picture
Fri, 01/31/2014 - 13:53 | 4388527 Hunter S. Thompson
Hunter S. Thompson's picture

But about the drones delivering packages, for sure that should boost stock prices. Seriously I could not believe they went on national TV and talked about using drones to deliver packages and the stock did not crater.

Fri, 01/31/2014 - 13:55 | 4388535 Dr. Engali
Dr. Engali's picture

Nope it's too controlled. Wake me when we have some real chaos.

Fri, 01/31/2014 - 13:56 | 4388541 Pig Circus
Pig Circus's picture

Where is the long sale rule on Over Stuffed Burrito? Phucking farce of a rigged scam.

Fri, 01/31/2014 - 13:57 | 4388551 Canadian Dirtlump
Canadian Dirtlump's picture

I'd like to see a short sale rule on commodities - then I'd sense a kick to the balls alot less frequently.

Fri, 01/31/2014 - 13:50 | 4388506 Quinvarius
Quinvarius's picture

Dumb money throws a tantrum.

Fri, 01/31/2014 - 13:50 | 4388512 mayhem_korner
mayhem_korner's picture



If it rises 10%, is there also a rule against "long hold"?

(why does that sound like something from Bwanee Fwank's rules for dating...)

Fri, 01/31/2014 - 14:01 | 4388577 ZeroPoint
ZeroPoint's picture

No. In the world of central banks, markets only go up, housing prices only go up.

Fri, 01/31/2014 - 14:07 | 4388597 Marco
Marco's picture

Ehh, the problem is that naked short selling is rampant ... if all the short selling was with borrowed shares we wouldn't need all this shit (or in financial double speak pre-borrowed, since borrowing has been redefined as not actually borrowing).

Apparently too many of the SEC friends abuse phantom shares to deal with the real problem, so we get all these temporary bodges to the system. There is no good reason why in this electronic age to still create phantom shares, atomic share ownership transfer can be done in milliseconds ... we aren't carting physical shares around with pony express any more.

Fri, 01/31/2014 - 13:57 | 4388513 syntaxterror
syntaxterror's picture

Couldn't AMZN generate $1.1 trillion in profit if Jeff Bezos tweaked the margin slider control on his control center dashboard?

Fri, 01/31/2014 - 14:04 | 4388593 eclectic syncretist
eclectic syncretist's picture

I suppose this is going to delay the implementation of drone delivery, which is way disappointing.  I was really looking forward to blowing one to pieces.

Fri, 01/31/2014 - 14:30 | 4388672 Almost Solvent
Almost Solvent's picture

You don't own the airspace around and above you!


Facists do!

Fri, 01/31/2014 - 14:01 | 4388518 Dr. Engali
Dr. Engali's picture

Uh Oh... The momos have left the house. Not a good sign for the bag holders. AMZN has a couple gaps to fill at lower prices.

Fri, 01/31/2014 - 13:54 | 4388524 fonzannoon
fonzannoon's picture

amazon is stupid, the smart money is hiding out in the twtr and fb safe haven until this blows over.

Fri, 01/31/2014 - 13:57 | 4388548 Dr. Engali
Dr. Engali's picture

Bastards better go hide some place else. WWE looks like a good spot.

Fri, 01/31/2014 - 14:56 | 4388751 Scoobywan
Scoobywan's picture

Mwahaha bought WWE at 8.90 like 8 months ago sold at 21 couple weeks ago.....SKH the next dumb ass stock to generate me some FIAT that I can trade for shiny heavy shit.

Fri, 01/31/2014 - 13:52 | 4388526 Winston Churchill
Winston Churchill's picture

The disturbance in the Farce is getting out of hand.

Time to short the even bigger dog turd.


Fri, 01/31/2014 - 13:58 | 4388549 fonzannoon
fonzannoon's picture

short momo at your own peril. that's dangerous.

Fri, 01/31/2014 - 13:59 | 4388528 syntaxterror
syntaxterror's picture

I confess, I used the free 30-day Amazon Prime trial to get free 2-day shipping before the holidays, and then cancelled it in January after making all of the returns that were required (with free shipping too). Sorry about that AMaZiNg investors.

Fri, 01/31/2014 - 13:58 | 4388554 Bearwagon
Bearwagon's picture

As if it wasn't your environment you ruin with their one-way packages and all the traffic. But I think what counts is that you provided GROATH to the economy - so, do go on ...

Fri, 01/31/2014 - 14:00 | 4388557 ebworthen
ebworthen's picture

Yeah, saw a story this morning that Amazon is considering RAISING prices for Prime and Online Video offerings.

So your sales are down and you want to RAISE prices?

Brilliant management team (*cough*).

Fri, 01/31/2014 - 13:54 | 4388529 BeerMe
BeerMe's picture

Anymore it seems I buy less and less from Amazon.  Even with Prime their prices are more expensive than just paying shipping at other places.

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