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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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Thu, 03/27/2014 - 09:52 | 4598191 VD
VD's picture

lovely. another 60% to go...

Thu, 03/27/2014 - 10:00 | 4598201 Headbanger
Headbanger's picture

You ain't seen nothin yet!

Just had to add that in here..


Thu, 03/27/2014 - 10:10 | 4598247 bania
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.

Thu, 03/27/2014 - 09:54 | 4598194 ebworthen
ebworthen's picture

Meanwhile, Ally Financial (GMAC) launches IPO!


Thu, 03/27/2014 - 10:26 | 4598341 BandGap
BandGap's picture

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

Thu, 03/27/2014 - 09:54 | 4598200 youngman
youngman's picture

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

Thu, 03/27/2014 - 09:58 | 4598217 101 years and c...
101 years and counting's picture

for a few more hours.

Thu, 03/27/2014 - 09:57 | 4598212 NoDebt
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.

Thu, 03/27/2014 - 10:00 | 4598226 101 years and c...
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.

Thu, 03/27/2014 - 10:08 | 4598255 NoDebt
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.

Thu, 03/27/2014 - 10:01 | 4598232 fonzannoon
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.

Thu, 03/27/2014 - 10:05 | 4598245 Al Huxley
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.

Thu, 03/27/2014 - 10:13 | 4598271 NoDebt
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."

Thu, 03/27/2014 - 13:52 | 4599359 UggSmash
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".

Thu, 03/27/2014 - 10:12 | 4598284 fonzannoon
fonzannoon's picture

I imagine there is just a dial they turn now.

I picture this guy in control of it all.

Thu, 03/27/2014 - 10:02 | 4598235 Theta_Burn
Theta_Burn's picture

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

Thu, 03/27/2014 - 10:02 | 4598233 SheepDog-One
SheepDog-One's picture

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

Thu, 03/27/2014 - 10:11 | 4598249 jubber
jubber's picture

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

Thu, 03/27/2014 - 10:07 | 4598251 replaceme
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?

Thu, 03/27/2014 - 10:08 | 4598256 replaceme
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?

Thu, 03/27/2014 - 10:08 | 4598257 the not so migh...
the not so mighty maximiza's picture

manipulators getting in "ramp" position

Thu, 03/27/2014 - 10:10 | 4598260 ebworthen
ebworthen's picture

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

Thu, 03/27/2014 - 10:09 | 4598261 Rakshas
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

Thu, 03/27/2014 - 10:10 | 4598263 gjp
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!

Thu, 03/27/2014 - 10:14 | 4598276 NoIdea
NoIdea's picture

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

Thu, 03/27/2014 - 10:15 | 4598294 Kaiser Sousa
Kaiser Sousa's picture

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

Thu, 03/27/2014 - 10:46 | 4598415 El Hosel
El Hosel's picture

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


Thu, 03/27/2014 - 11:13 | 4598572 Obama_4_Dictator
Obama_4_Dictator's picture


Thu, 03/27/2014 - 11:27 | 4598644 TheRideNeverEnds
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.

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