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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.

Fri, 01/31/2014 - 14:00 | 4388560 superflex
Fri, 01/31/2014 - 13:55 | 4388539 ebworthen
ebworthen's picture

"Short sale rule"?

Where's the "ramp job rule"?

Fri, 01/31/2014 - 14:01 | 4388567 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Man when I think of all the times gold investors were bailed out by curbing of short sales when the markets stared to wobble....



Fri, 01/31/2014 - 13:57 | 4388542 thismarketisrigged
thismarketisrigged's picture

when the fuck will fuckshit have a 10 plus percent down day?


amzn is insanely overvalued, should prob be trading at tops 100-150, and that is prob overvalued, but at least amzn is a service that ppl use to buy and sell things, so i understand if some ppl want to own the stock.


however, with fuckbook, 150 billion marketcap when they contribute nothing to society.


that is the stock that sickens me to death.


i hate aapl, goog, amzn, etc, but at least aapl has products, goog has stuff, amzn has a service, wtf is fuckbooks purpose?

Fri, 01/31/2014 - 14:02 | 4388578 Pheonyte
Pheonyte's picture

wtf is fuckbooks purpose?


To dissipate inchoate rage at the system by letting people express their anger through idiotic "meme" posters that their "friends" can "like."

Fri, 01/31/2014 - 16:08 | 4389094 Blizzard_Esq
Blizzard_Esq's picture

I'd wager not that complex, its people just staring in the mirror at themselves; a narcissus masterburation of the ego. 

Fri, 01/31/2014 - 14:07 | 4388589 Grande Tetons
Grande Tetons's picture

A dog will eat his own shit for no apparent reason. People buy facebook for no apparent reason. 

Not really an answer. Sorry. 

Fri, 01/31/2014 - 14:12 | 4388624 Son of Loki
Son of Loki's picture

"...[insert any stock symbol here] is insanely overvalued, should prob be trading at tops [insert true value here], and that is prob overvalued...."

Fri, 01/31/2014 - 13:58 | 4388546 TideFighter
TideFighter's picture

I didn't mean to do it but I had to cancel my AMZN order of Duck Dynasty hats, socks, coffe cups, socks, and t-shirts.

Fri, 01/31/2014 - 14:14 | 4388629 Son of Loki
Son of Loki's picture

Not too late to grab "Best of Beeber, Collector's Edition" CD before they're all gone.

Fri, 01/31/2014 - 13:58 | 4388556 KidHorn
KidHorn's picture

Last month I signed up for prime. Mainly because I was a netflix user and for the same price (actually slightly less) I can switch to amazon on demand videos and get preferred shipping too. Amazon has all the same videos I watch. Plus the image quality is better and the software is faster. I wish I had switched sooner.

Fri, 01/31/2014 - 15:02 | 4388776 realWhiteNight123129
realWhiteNight123129's picture

What a troll advertiser you make. 

Fri, 01/31/2014 - 14:02 | 4388562 syntaxterror
syntaxterror's picture

The PE ratio is now "down" to 1,314. I'll be a buyer at a PE of about 1000 or so.

Fri, 01/31/2014 - 14:05 | 4388588 SAT 800
SAT 800's picture

But this is not a "puffy", speculative bubble type market; oh, hell no. it's all normal and rational. hmm. hmm. Watch out for that first step, it's a long one.

Fri, 01/31/2014 - 14:00 | 4388568 hotrod
hotrod's picture

Did the SEC ever trigger the short sale rule when the PM miners all got punished from April(Tax Day) to June of 2013?????????? They probably celebrated. 

Fri, 01/31/2014 - 14:03 | 4388574 SAT 800
SAT 800's picture

A rule that says you can't short the Stawk; in order to express your free man's opinion as to it's value. Oh, okay; I guess that's what they mean by a Free Market? WTF? Even my little sister can understand that's not a free market; that's a rigged market.

Fri, 01/31/2014 - 14:03 | 4388581 syntaxterror
syntaxterror's picture

Can't Obama just issue a decree banning any short sales of Internet Stawks?

Fri, 01/31/2014 - 14:28 | 4388664 B.J. Worthy
B.J. Worthy's picture

He's got a pen and a phone, so maybe he should stick that Bic up his ass and call somebody to help dislodge it.

Fri, 01/31/2014 - 14:07 | 4388601 Al Huxley
Al Huxley's picture

They should really give anybody who bought AMZN before close yesterday (or say, above 360) a do-over if they want.  That would be more effective than some stupid short-sale rule that doesn't get me my fucking money back dammit!  My Little Pony Capital Markets for 6 year old girls, coming soon...

Fri, 01/31/2014 - 14:50 | 4388603 CitizenPete
CitizenPete's picture

It's different this time.  War is Peace.  Chocorats are up.

Return back to work, only assholes and elbows is what we want to see here.

Recdep to rectify.


Newise message (Thinkpol rectified) : BTF201D

Fri, 01/31/2014 - 14:23 | 4388653 B.J. Worthy
B.J. Worthy's picture

AMZN P/E "dropped" from 1400x to 1300x. We're nowhere near correction levels.

Fri, 01/31/2014 - 14:31 | 4388675 Ricky Roma
Ricky Roma's picture

But you can still short on down ticks in NEM.  Hilarious!

Fri, 01/31/2014 - 15:00 | 4388761 realWhiteNight123129
realWhiteNight123129's picture

I was discussing with my pals at least 2 weeks ago that the best buy miss and quarterly conference was saying that the softness in december was in the entire industry. Next Samsung disappointed and AAPL was soft. Those are key categories at AAPL. I was discussing with a friend that more than AAPL, AMZN was the quintessential reflation money pumping scheme because unlike other business models which are computer based, it is a logistical business still with low margin little cash flows to show for and a lot of capex. That meant that with 200 billion, if AMZN failed it would bring a lot of stocks down with it, because it is in the same portfolio as other money pumping vehicle and margin is high. So I was speculating that AMZN miss could trigger a sharp correction.

Next thing you know, the stock is missing nothing surprising and now they want to prevent AMZN to bring down with it its nice little money pumping friends of which we all know Tweeter, Telosa, Facebook, Netflixz,Yelp and IWM. The whole bond and stock markets are a joke.


Fri, 01/31/2014 - 15:11 | 4388825 Atomizer
Atomizer's picture

What impact will this impose on my drone toilet paper delivery?

Fri, 01/31/2014 - 15:21 | 4388861 TheRideNeverEnds
TheRideNeverEnds's picture

Thanks Obama!

Fri, 01/31/2014 - 15:47 | 4388993 Save_America1st
Save_America1st's picture

I sense a great disturbence in the farce as if millions of shares of stocks suddenly cried out in terror and then suddenly silenced...

Fri, 01/31/2014 - 15:55 | 4389014 BeetleBailey
BeetleBailey's picture

Went to the Money Show in Orlando Wednesday and yesterday....

Just like market tops, the hucksters were pitching Fartbook and Twitter and all their start up penny avoid this scams....Google....Amazon...those goddam charts were up all over the place.....and the people ate it up with a spoon...didn't help that Fraudbook was up nice on the day....

Some schmo said he was up 238 bucks for the day....when the butcher and baker get into it...trouble lurks...

Listened to Shiff...he spoke there....only clarity of the bunch...

Dent sees the market mid 2015 at 3300...

Fri, 01/31/2014 - 15:58 | 4389050 eucalyptus
eucalyptus's picture

not a fan of b&m retail chains by any means but as i said in another BBY post after that plunged, if AMZN was subject to similar scrutiny by the street, perhaps b&m wouldn't be hurting so much.

fuck em both

Fri, 01/31/2014 - 16:39 | 4389216 deerhunter
deerhunter's picture

dogs eat their shit for no reason that is true Grand Tetons but remember this,  no one likes a shit eater!!!!  Told to me by my father-in-law with a serious voice as he watched one of my beagles doing said action. Brought back a good memory,,, thanks,,,,,,

Fri, 01/31/2014 - 17:44 | 4389471 ILikeBoats
ILikeBoats's picture

Their Amazon search engine is bad, and with the ability of 3rd party sellers to come in an hawk the same item but at a higher price, the combination is that Amazon looks more like a flea market, and I have to then sift and sort to find the good quality at good price stuff amongst all the dreck.

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