Stocks Tumble To Red For 2014, Biotech Hammering Continues

Tyler Durden's picture

For the first time in over 6 weeks, all major US equity indices are in the red for 2014. Early-year leaders Nasdaq and Russell are being crushed by the battering of Biotechs and monkey-hammering of Momo names. Since FOMC, Momos are down 14% and Biotech down 12%. The high-growth hope is fading and nowhere is that more evident than the tumble in 30Y yields - now at 10-month lows. The hopes that financials would lead have nw left as they are also in the red post-FOMC (post-CCAR hope).


USDJPY in charge...


Stocks all red YTD...






As the 30Y hits 10-month low yields...


Charts: Bloomberg

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VD's picture

lovely. another 60% to go...

Headbanger's picture

You ain't seen nothin yet!

Just had to add that in here..


bania's picture


Just bought gold/silver, and some junior miners. As these always get monkeyhammered after i buy please go ahead and place your shorts, you're welcome.

ebworthen's picture

Meanwhile, Ally Financial (GMAC) launches IPO!


BandGap's picture

Hey, we paid for it, may as well launch the damn thing.

youngman's picture

Hey but candy crush is still a 6 billion dollar company....

NoDebt's picture

A flight to "quality".

This is another in a long string of the most tame, well-managed sell-offs I've ever seen (since the Nov 2012 lows).  Short this one at your peril.

101 years and counting's picture

"Short this one at your peril."

isnt that the point.  destroy bears enough so they dont short.  and when they dont short, theres no short covering.....

its a game for wall st.  they needed the fed to print 3.3 trillion (so far) to set this one up, but this is the top.  and everyone is too scared to short.

NoDebt's picture

I agree this feels toppy.  Fed ratcheting back QE, China drying up as the primary provider of global "dark matter" liquidity.  Definite headwinds.  Still, we could spend the rest of the year chopping sideways in a 7% range.

fonzannoon's picture

I think you can short it nodebt. Just not the index. It seems like the algo's are just on a big hunt to find anything with a gain and destroy them. media....we are watching a correction take place without the index flinching. It is truly amazing.

Al Huxley's picture

Yeah, I wonder how they do that - sell off the index components, while not impacting the index.  Must be some kind new market math that only Wall Street geniuses can understand.

NoDebt's picture

You'd have to go through it one stock at a time, but that's why I made the "flight to quality" comment.  All the high-beta garbage that did so well last year is getting hammered, so something has to be offsetting those declines.  

I think we may have some legit "sector rotation" going on.  Remember that one?  Oh boy, that was a million years ago.

Also, somebody asked yesterday "how are the 'most-shorted' stocks doing?"  I don't have the time to research stuff like that, but I suspect the answer is "not so good."

UggSmash's picture

@ NoDebt, Fonz, 

Just read this guy on MarketWatch; seems to say something that supports what you're talking about: a ratio between utility stock prices and momos, i.e. "beta rotation".

fonzannoon's picture

I imagine there is just a dial they turn now.

I picture this guy in control of it all.

Theta_Burn's picture

Someone posted that "justbuyhefuckingdipyoumoron" clip yesterday and It's still in my head...

SheepDog-One's picture

Dip buyers need a swift kick in the pants! Get back in there and BUY!

jubber's picture

/TF now positive , Dow has bounced 50 and large POMO in 10 minutes, possible nasty short squeeze coming?

replaceme's picture

biotech has been the star of my retirement fund for a while, hate to see it go bye bye... Next big thing, bunkers or guns?

replaceme's picture

biotech has been the star of my retirement fund for a while, hate to see it go bye bye... Next big thing, bunkers or guns?

the not so mighty maximiza's picture

manipulators getting in "ramp" position

ebworthen's picture

Meanwhile, Citi is completely insolvent - yet up 7.8% in the past year - and trading at $48 instead of $1.

Rakshas's picture

It'll be ok ...... from david Moron

The need for fracking is greater than ever, Cameron said at the Nuclear Security Summit in The Hague, saying that Russian behavior in Ukraine didn’t go as planned and a search for alternate sources needed to be at the top of Europe’s energy agenda....... 

...... seems legit

gjp's picture

Bottom ticked that one perfectly, ZH, well done.  Stocks swinging wildly up and down, but barely a scratch on the S&P, what 2% off all-time highs at ridiculous levels.  Meanwhile no volatility in PMs, just straight down, nearly 10% in a week and a half.  Fuck the fascists!

NoIdea's picture

Stocks haven't been this cheap in at least oooh, two weeks! BUY THE DIP!!!

Kaiser Sousa's picture

this was obviouslywriiten before the rocket v-shaped reversals were executed....

El Hosel's picture

Yeah, nice "throw back"... Bought the dip on BIS.


TheRideNeverEnds's picture

just buy the dip, it is free money.  100% guaranteed we will make higher highs this year.  sell em out at 1900 if you are nervous but if you wanna be a hero wait till we trade through 2000 later this year.