Despite Late-Day Ramp, Stocks Slide As Yield Curve Flattens To 2009 Lows

Tyler Durden's picture

Despite dismal PMIs from China and USA, stocks managed a miraculous 'pump' into the US open only to be unceremoniously dumped very soon after as MoMos and Biotechs had the rug pulled out. Weakness continued down to Nasdaq's 50DMA (and Biotech's 100DMA) and stabilized into the European close when soon after, via the magic of EURJPY, stock rebounded back to VWAP. Alas, it was not be the day for the bulls as VWAP-selling hit hard in the last hour... until the good fairy 330RAMP CAPITAL came along, and punched VIX in the mouth in a desperate attempt to regain green and get the Dow positive post-FOMC. Unlike many fairy tales though, this one ended sadly ever after. Stocks down, USD down, Gold down, VIX up, Yield Curve down to 2009 levels.


Despite the exuberant rebound in stocks...helped by the magic of VIX-crushing algos...


Stocks were unable to hold green on the day and remain red post-FOMC


Post-FOMC, Builders and Healthcare are equally bad as Financials continue to cling to gains ahead of this week's CCAR...

(despite Financial credit having deteriorated notably)...


USDJPY remained generally in charge (with some EURJPY thrown in soon after the EU close)...


A day in the life of an S&P 500 futures contract...


The Nasdaq has seen the biggest high to low drop in 2 days for 9 months...


But the most important chart of the day is the ongoing collapse of the term structure... this is the biggest 4-day slide in the curve since the US downgrade in summer 2011...


As the Treasury complex was mixed - 10s and 30s rallying and shorter-dated selling off further...


Even though the USD fell notably as a sudden rush out of USD and into EUR occurred around the EU close...


Gold and silver slipped (-1.8%)


Charts: Bloomberg

Bonus Chart: Nasdaq Biotecth Index bounced perfectly off its 100DMA


Bonus Bonus Chart: Breadth is not exactly confirming this move... (h/t @Not_Jim_Cramer)

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gjp's picture

Feckin joke - stocks gyrate wildly, momo looks full of holes, financials just whistle along at multi-year highs while precious metals are comatose in the midst of a great power pissing match and credit indigestion everywhere.

fonzannoon's picture

gjp what is scary is that the fed seems like it may be able to let the air out of momo without a scratch to the almighty S&P and they even kicked PM's in  the face as a little bonus. You have to stand in awe.


DoChenRollingBearing's picture

Good day to you, fonzannoon!

Looks like I picked a great time to head for South America, LOL...  Now I have to go back.  But with gold a little lower (BTFD, at least a little, hey things have been great for us here in Peru), and less work to do in the USA than here (!), well, I´ll just break out the popcorn and carry on...

Al Huxley's picture

I truly do - I was HONESTLY impressed with the way they faked up that 'breakout' in the miners on the 13th - beautiful - run a classic consolidation flag for a couple of weeks, BIG pop to break the upside rail, and then BAM- right back down through the bottom rail and then no respite into the basement, its like the professional wrestling of capital markets. 


Of course the sector's so discredited at this point that there can't be much money in beating the shit out of them, but I guess they do it for the aesthetics and not the financial reward.

new game's picture

al, a must read post everytime!

The Most Interesting Frog in the World's picture

IDK, last week I think Yellen was basically saying, "Fuck the S&P..."

Pareto's picture

Another opportunity to buy.....its the only way to look at it....other than as Fonz says....stand in awe.

Headbanger's picture

You're both moe-rons.  

Get a clue you mooks.

It is fucking over, done, finished, deceased, not living.. 

Al Huxley's picture

I don't think you get it - you're living in the fucking matrix, in the realm of capital markets (and news coverage) 'they' can do whatever the fuck they want, they're bound by no rules, no constraints - if they want the market to go up, they buy, if they want it to go down they sell, if the volume of selling gets really big, they just buy more, they're unconstrained, they can do this forever.  It's not finished because it's not real, it's all just pretend - the news, the markets, the financial reporting, the economics, it's all bullshit. 


Maybe you're out of work and hungry?  Tough shit, it must be you, look at our job numbers - the economy's booming! Seems like the weather's crazy hot or crazy cold?  You're imagining it, look at our statistics, clear evidence of <global warming today, global cooling tomorrow, no change on wednesday>.  Gas and grocery prices seem like they're going through the roof?  Nope, sorry - look at our numbers, there's no inflation - keep it up and we'll have you committed for your own safety.

new game's picture

two words or four- the matrix or cog. dis.

cry or laugh, but either way, understand you have NO FUCKING CONTOL....

Quinvarius's picture

You have to start hoarding stuff before others catch on.  The prices may be rigged and mandated.  But that doesn't mean there will be anything for sale.  This is how government's cause mass starvation.  Mao did it.  The Russians did it.  Now the morons in DC are doing it.  I have already seen them destroy whole sectors of employment with glee by mandating prices to low.  These people are insane terrorists.

mac768's picture

The beginning of the end...


of the bubble economics


Charles Nelson Reilly's picture

what the fuck?!?  Somebody get Kevin Henry off his freaking ass!

fonzannoon's picture

I love how when gold is up $7 we say it spiked and when it is down $26 we say it slipped. 


blabam's picture

Slipped... off a cliff.

Winston Churchill's picture

Just be glad it has not slipped as much as Dr.Copper.

Stawks are dead men walking, and look to keel over when someone farts too loud.

new game's picture

slipped and broke a hip. selloff is the chinese- now we know. can't blame them-can you? if i was buying tons of the shit i would naked short the paper while the truck is enroute...


The Most Interesting Frog in the World's picture

The questions is, does the Fed let the dollar go higher (continue taper)?  or do they ramp back up again?  I do not doubt there is manipulation in gold, but at the same time there are massive deflationary pressures (despite all that Reserve banks have done) as well.  Deflation is/will be bad for gold and silver.  Let's face it also, if the Fed continued to conduct quantitative easing on massive scale and push real estate and stocks higher, interest rates would have to go higher - and the federal government (the folks with the big military and big guns) can't afford higher rates.  QE hasn't done squat in a couple years anyways, I think they are winding down, rates stay low, I think they will sacrifice the stock market to keep rates low...  and will not be good for gold...

TideFighter's picture

As I get older, I realize that the strongest negative component in the silver/gold bug algo is my age. Time is not on my side, therefore, the "dumping" may continue forever (AIKI). 

monopoly's picture

Don't remember anyone saying this was easy. What a day for us.

The Most Interesting Frog in the World's picture

M2 velocity is still tanking and subprime student and car loans aint gonna make up the difference.  Unless they start shoving dollar bills down peoples throats inflation, and gold/silver, not gonna go nowhere....  but I bet we could put those dollars bills to better use...  just a thought...

Hindenburg...Oh Man's picture

- 6.3 percent on gold in a week (from pre-market highs to interday lows)...and mining stocks and ETFs off as much as 10 percent. Tough week for the PM fans who follow prices (yes, I know as manipulated as they are...)  Do we go lower from here? At some point we get back to 52 week plus lows on the miners. 

It wasn't a long run up...If you made any fiat off this you had to be some kind of aggressive and lucky market timer. 

q99x2's picture


They have to pay the Russians.

g&#039;kar's picture

In-A-Gadda-Da-Vida baby

Quinvarius's picture

It is so funny to watch this crap happen every time they screw with paper gold.  They can't make the connection between what 3/4 of the world saves in being deliberately mispriced and economic activity collapsing.  But if MBS drops 2%, that is going to cause a crisis.

nscholten's picture

I just doesn't matter to me.  Well, I guess I do need to still pay off my mortgage of $20,000 so $2,000 dollar gold would help.  It will hapeen all at once.  If your older and need to sell well that sucks like everything else the oligarichs manipulate but that's the game.