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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Pheonyte's picture

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

Truther's picture

Ditto... BUT it feels creepier

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.

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

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.

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."

SoilMyselfRotten's picture

That'll teach 'em to accept Bitcoin

Frozen IcQb's picture

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

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.

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.

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

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.

Dr. Engali's picture

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

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?


SoilMyselfRotten's picture

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

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.

frenzic's picture

yeah look at the smashing succes overstock turned out to be


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.


Spastica Rex's picture

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

Priorities, my friend.

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.

Bearwagon's picture

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

SAT 800's picture

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

jerry_theking_lawler's picture

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

TideFighter's picture

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

Headbanger's picture

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

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.

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.

Dr. Engali's picture

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

Pig Circus's picture

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

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.

Quinvarius's picture

Dumb money throws a tantrum.

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...)

ZeroPoint's picture

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

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.

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?

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.

Almost Solvent's picture

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


Facists do!

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.

fonzannoon's picture

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

Dr. Engali's picture

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

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.

Winston Churchill's picture

The disturbance in the Farce is getting out of hand.

Time to short the even bigger dog turd.


fonzannoon's picture

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

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.

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 ...

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*).

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.