Stocks Close Down Despite Last Hour Buying Panic

Tyler Durden's picture

Early weakness and volatility was entirely suppressed once European markets closed and stocks traded in a shockingly low range amid dreadfully low volume. All the major indices closed red with the Russell underperforming (and Nasdaq outperforming) as stocks tracked (more loosely than normal) with AUDJPY once again. Treasuries ended the day very modestly lower in yield (30Y unch, rest -1bps). The USD traded modestly higher all day led by weakness in GBP and AUD (as JPY ended unch). Gold closed unchanged as copper (China), oil, and silver slipped. Credit markets remain skeptical and VIX closed higher on the day, despite the late-day ramp efforts to get the S&P 500 green - which failed.


Stocks entirely decoupled from JPY carry in the last few minutes as VIX was slammed lower to juice the S&P up to a green close...but failed


and as that decoupling took place - VIX was smashed 0.4 vols lower out of nowehere but failed to get the S&P green


but as is clear - all the action in stocks was in the US open to EU close period (aside from that idiotic closing ramp)


MoMos were confused - FB new record highs, but TSLA tumbled


Credit remains skeptical...


Treasuries went nowhere fast...


Gold outperformed among the commodities as copper, oil, and silver slid...



Charts: Bloomberg

Bonus Chart: myPLUG - the government's new low-risk, high-return investment fund?


Bonus Bonus Chart: For most of the last 15 months, implied correlation has tracked lower and lower as stocks have soared higher and higher as implied volatility has collapsed and the fear of Correlation-of-1 event slipped away into Utopian dreams. Amid the government shutdown, we did see crash risk concerns rising (as implied correlation rose on systemic index vol buying - i.e macro overlays) and that was rapidly dissipated as all turned out bright and shiny. This time, however, things are notably different - the rise in implied correlation is coming at a time of falling implied vol and suggests that while overall complacency remains high (no bid for protection) there are growing concerns of a large event...


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
thismarketisrigged's picture

i wouldnt even consider it down today.


the criminals got what they wanted, we finish '' down'' and then tomm when they ramp it up 150 pts on the dow and 15 on the s&p, they can say how we r having ppl buy on the dip from yesterday.


s&p didnt even lose 1 pt.


faceshit was upgraded again, and i had to here how great its advertising is, i couldnt stop laughing.

max2205's picture

In the news an asteroid will hit the earth in 12 hours,  in other news the Dow was up 4%

Obchelli's picture

That means UPPITY tomorrow to compansate for lost positive day today and tomorrow so do up at leat 150 points

Manthong's picture

But I’ll bet that GS and JPM had a trading profit today..  any suckers out there?

The_Ungrateful_Yid's picture
  • Flat monday except for fuckbook
lasvegaspersona's picture

what is that bizzare volume below the PLUG chart...someone starting fires?

gjp's picture

Looks like it traded 2x total shares outstanding today alone.  2000 redux, with Internet and Fuel Cell bubbles running in parallel, except everything else is a bubble too.

No Janet, no bubbles here.

FFS, nothing is going to stop this shit.

Winston Churchill's picture

Onlly a flying TOPOL might.

Sufiy's picture

Gold Catalyst: Economist John Williams: Financial Collapse if Russia Sells U.S. Dollar Holdings

  With Ukraine in the headlines Greg Hunter discusses with John Williams the complications for the US Dollar Reserve Currency Status of the ongoing Financial War. China has sold the record amount of US Treasuries in December and buying the record amount of Gold. Today US Dollar has crashed below 80.00 again and closed at 79.66. Russia has already warned US that any sanctions will come back to those who will implement it. With China siding with Russia we can expect the acceleration of De-Dollarisation now.

Chupacabra-322's picture

The Sock Puppets for the Criminal UNITED STATES, CORP. INC. are out in full force down voting the Truth To Power speakers.

Ban KKiller's picture

Were they asleep at the switch? Not get the memo?

200 point gain tomorrow on bad news everywhere. FED up?

superflex's picture

Is Biden pushing PLUG?

optimator's picture

I guess 3 billion a day still has some effect.  

NDXTrader's picture

I guess the thinking is that the BOJ will drop some little nugget of future easing. Mo matter that the policy is an utter failure

skwid vacuous's picture

what a fun day - now ES ramps are being supported by...just sheer greed?

and end of day vix smash, forgot about that one... tried and true, like "power sweep right" over the muppets

asteroids's picture

In a few hours, ramp the Japanese futures and fuck with the Yen and AUS dollar. Wait a few more hours, then fuck with Europe, by that time the US futures will be green. There is no "market", just Central Bankers doing what "they" think is right. Just fucking with everything to make sure banksters make their bonuses.

rlouis's picture

Wow, isn't that interesting! Now the question is whether a new front has been opened against the Ukraine or is it collateral for bankster loan.

SheepDog-One's picture

Nothing even down .1% but to hear it from the financial talking heads it's like a nightmare not having another record high today. So spoiled.

101 years and counting's picture

imagine the stank when someone pops yellen's cherry.....

NOTaREALmerican's picture

When I'm stuck with a day that's gray and lonely
I just stick up my chin and grin and say....

The sun'll come out tomorrow
So you got to hang on till' tomorrow, come what may!
Tomorrow, tomorrow, I love ya tomorrow
You're always a day away.

MeelionDollerBogus's picture

fix it for ya:

Sun'll come out POMOrrow,

better your printed dollars that POMOrrow, stawks will shiiiine

MeelionDollerBogus's picture

Got HVU? It's 35% higher than it would be on the trend of (219/SPY)11 = HVU. UVXY also -11x

John Law Lives's picture

The PLUG chart is even more interesting if you extend it back to late 2013 when it closed below $0.50 per share on November 6, 2013.

css1971's picture

FTSE is topping out, as is the DAX and the S&P isn't on the original trend for 1900 either.

They're running out of steam basically.

ReactionToClosedMinds's picture

that seems to be the concern.......eventually 'buying power' has to fade even if just for mathematical reasons alone.

Which begs the ? .......they know it; they know we know it they have to have a 'scheme' to ease the market lower without re-awakening the perma-spook from Sept.?Oct/ 2008

elwind45's picture

It was a high just not as fresh

The Most Interesting Frog in the World's picture
"Stocks Close Down..."


Not fair....

GooseShtepping Moron's picture

"...volatility was entirely suppressed..."

Funny, I was just thinking the opposite. Not that volatility didn't diminish after the European close (which it clearly did), but that intraday volatility in general is just way higher than it ought to be.

This market seems to literally trade in candlesticks. I consider this a direct result of, and a reliable indicator of, stock price inflation. Trades that would have bearly caused a tick in the good old days are now good for ten or twenty points, simply because we are looking at prices through a magnifying glass of leverage.

In order to get an understanding of what an unmanipulated market should look like we might try just reverse-splitting all stocks by a factor of ten, similar to the way Turkey once whacked six zeros of the value of the Lira to disinflate it. Then we should bring back trading in pieces of eight. That ought to put a damper on HFT shenanigans, since traders would be forced to focus more on the "handle" (i.e. the nearest piece of eight) than the fraction of a cent. Long term investing might become attractive again under such circumstances.

It's food for thought, anyway.

Soul Glow's picture

The Fed is holding on tight to the equity market while the rest of the world lets theres slide.  And the dollar went no where fast as a result of this policy.

Chupacabra-322's picture

Long pipe but well worth the read. Cut, paste, forward!

American law is a tricky thing to understand. Almost all people don’t understand what the 14th Amendment really means, and that is because the words used have legal definitions which typically aren’t the definitions found in a normal dictionary. The use of words that have multiple legal meanings fuels the power of the 14th Amendment. For starters, there is a legal difference between the “United States” and the “united States.” Legally, the “united States” are the unity of the sovereign States of America. The “United States” is actually referring to a corporation, a.k.a. “The United States of America.” The “united States” is the abbreviated form of “united States for America.” The “United States of America” is the name used in the Constitution to describe the federal government, not the States that are united. The purpose of the old 13th Amendment was to keep those with titles of nobility – in other words, representatives of Britain – out of the government of the United States of America – being the federal government – by not allowing them to be citizens of the united States, a Constitutional prerequisite for office.

Section 1 of the 14th Amendment was an attempt to tie the sovereign American of the united States to the United States federal government. Doing so required the change in the definition of what a Citizen is: we see the case of “Citizen” was changed to “citizen.” The American “Citizen,” addressed in earlier parts of the Constitution, was replaced by the 14th amendment title of “citizen.” This was a necessary step for controlling the people because before this time, there was no tie between the federal government and the Citizen of a State. States were like countries of their own, only the federal government acted as a mediator between them. The 14th Amendment made people citizens of both their States and the federal government, subjecting them to both entities’ laws. The other key element is the use of the word “person” or “persons,” which is distinguishable in law from “people.” The word “person” has three legal definitions, the third of which being the confusing factor: “3. An entity (such as a corporation) that is recognized by law as having the rights and duties of a human being. In this sense, the term includes partnerships and other associations, whether incorporated or unincorporated.”[8] In short, person can also mean a corporation. So, looking back at the 14th Amendment, one can reword the first line “All corporations born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside.” A 14th Amendment “citizen,” as we shall later see in much greater detail, can and commonly does refer to a corporation.[9]

Being incorporated, people need permission to use Britain’s imposed laws. These people, who use this British legal system for and usually against the American people, are referred to as attorneys, as opposed to lawyers. Yes, there’s a difference. The word “attorney” comes from “attorn,” which means to turn over to another; transfer.[17] In old England, the title of attorney meant one who attorned (“attourned” is the old English), which meant to transfer money, goods, etc. to another.[18] Attorneys served the king or queen in handling disputes regarding money/goods with their peasants. In modern times, attorneys transfer things of monetary value through court procedures to both other forms of money/goods and to new owners, being either persons or the government.[19] Attorneys have limited legal power because they are sworn to uphold the British, copyrighted law. A lawyer isn’t limited like this. Many believe that one needs to get licensed in order to practice law – this is an utter fiction. One needs to become licensed if one wishes to become an attorney in order to avoid a copyright violation[20], and the way to do this is to pass the BAR exam and register with the American BAR Association. The American BAR Association is an appendage of the BAR Council, which is the BAR association of England. The term BAR is an acronym for British Accreditation Register[21]: the registry for those who have been accredited to use America’s British copyrighted law.

Beyond this point in America’s legal history, any laws that came about were private laws of Britain. Any sovereign Citizen is exempt from these private laws. Anyone who doesn’t dispute being a 14th Amendment “citizen” is subject to these private laws. The 13th Amendment eliminated involuntary servitude, but it said nothing about voluntary servitude. The 14th Amendment was a gateway for voluntary servitude to take place. At this time, simply claiming to be a sovereign Citizen and not a 14th Amendment “citizen” was, legally speaking, enough to avoid being subject to Britain’s private laws. How could the Brits get people to agree to be these citizens? The answers they found were implemented into a plan that materialized into the New Deal.

TheRideNeverEnds's picture

1900 is a given because we will close 2014 over 2000; it is guaranteed.   Just follow the FED balance sheet and project it out, it is the "market".  

Everything else is just noise, buying here is a no brainer.  

The one unknown is as things keep getting worse exactly when and by how much will Yellen increase QE.  That could shift year end projections from around 2100 to around 2500 in the SPX.  Going down is not even an option, the chance of this market closing down on the year is zero.  

Donewidit's picture

Maybe not by the end of 2014, but, by 2020 i expect dow/gld/slv, 1:1:.058...see long term dow/gld ratio chart. Almost a given.

disabledvet's picture

should be interesting to price in a hot war in Kiev Rus that we have committed ourselves to.

Diesel fuel is already up ten percent...gallon of milk likewise. Propane has doubled...hope these folks know what they're doing.

Conax's picture

When the steenking dow and s&p finally swirl down the sewer drain, I'm going to paint myself silver and gold and do the happy feets dance all the way down Wall street, dodging the meat bombs coming from above, side stepping the splatters, singing "Jump you mudder fuggers" at the top of my lungs.

Ok, maybe I'll just shoot off my ought-six a few times..


jubber's picture

I gues there will be a miraculous huge Chinese rally tonight then?

yogibear's picture

QEen Yellen, Charles Evans and William Dudley keep pushing to bid up the market until the US dollar crashes.

Their motto is print until outside forces stop them. Only time that will be is when other countries dump the US dollar and no longer accept it.


Bonapartist's picture

Dr. Copper ain't buyin' it