• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Momos Mauled: Nasdaq Crashes Most Since 2011, Stocks Tumble From Record High

Tyler Durden's picture


The jobs number expectation had been falling for a few days into the print this morning and despite the desperate efforts of every status-quo-hugging TV talking-head's Goldilocks scenario, it was not a good report - it missed low expectations and it seems the market is realizing (having been told the bar is very high for an un-taper) that the Fed will not rescue it any time soon. GDP expectations are also tumbling and thus the hope-driven hyper-growth stocks have been monkey-hammered. This is the worst swing for the Nasdaq since Dec 2011 (with Russell, Dow, and Nasdaq -1% YTD). Momos and Biotechs were blamed but this was broad-based selling as JPY carry was unwound in a hurry. Gold rallied above $1300 (+8.1% YTD) as bond yield ripped lower for 5Y's biggest daily drop in 10 weeks (short-end -4bps on the week). VIX pushed back above 14 (but it was clear derisking exposure - as opposed to hedging positions - was the order of the day).

"Not" Off The Lows...


But gold winning Year-to-Date...


This is the first time since the post QE4EVA rally began that the BTFD'ers have lost...

. this is the first time a dip to a technical level (50 or 100DMA) did not result in higher highs)...


Which left the Russell, Dow, and Nasdaq down 1% YTD, the S&P barely green and Trannies outperforming (for now)...


The mid-week short-squeeze was unwound in a hurry in the last 2 days...


Which left The Nasdaq red on the week


But on the week, Biotechs and Momo gave up all their short-squeeze mid-week gains...

They tried to ramp at 330 (using VIX) but stocks were having none of it...


AUDJPY was in charge of stocks (after USDJPY decoupled from stocks at the payroll data)


But on the week the USD was bid and JPY strengthened today as carry unwound... the CEB floated the strawman QE story (and later denied it) to run some stops and test market reaction...


Treasuries ended the week mixed (30Y +4bps, 10Y unch, short-end -3bps)


and we noted 10Y yields are about to golden cross (bullish bond prices)


Despite USD strength, gold rallied back above $1300 and closed comfortably green on the week


and in conclusion, we suspect there are more than a few 'investors' out there who feel like this unfortunate FedEx driver...


Charts: Bloomberg

Bonus Chart: The "smart" money is leaving the building...

Your rating: None

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Fri, 04/04/2014 - 16:05 | 4626232 Say What Again
Say What Again's picture

Never get out of the boat
Absolutely God Damn right
Unless you're going all the way


Fri, 04/04/2014 - 16:25 | 4626315 max2205
max2205's picture


i wonder when the TBTF got the sell memo from BenYellin

Fri, 04/04/2014 - 16:29 | 4626325 Say What Again
Say What Again's picture

Another interesting intra-day statistic is the failure for most of the indexes to move back to their VWAP by the end-of-day.  I don't have the actual number handy, but it seems like 90% of time the indexes close right on their VWAP.

Fri, 04/04/2014 - 19:19 | 4626798 DeadFred
DeadFred's picture

Something is amiss with the HFT algos, I wonder what it is?

Fri, 04/04/2014 - 16:05 | 4626235 soopy
soopy's picture

haha enjoy your little gloat, I know you have so few chances to do so.

Fri, 04/04/2014 - 16:11 | 4626258 SheepDog-One
SheepDog-One's picture

Serious economic issues....and this fucktard thinks it's all about Jr. High level kids stuff? 'Gloating' will be the last thing on anyones mind when this shitstorm arrives onshore.

Fri, 04/04/2014 - 16:17 | 4626290 Harbanger
Harbanger's picture

Dow is down .96% today, Gold is up .96%.  I'm liking this.

Fri, 04/04/2014 - 16:20 | 4626298 soopy
soopy's picture

You talk so big for a sheep, dawg.

Fri, 04/04/2014 - 16:30 | 4626330 Say What Again
Fri, 04/04/2014 - 16:32 | 4626336 Jlasoon
Jlasoon's picture

This is not the Sean Hannity show internet forum. Please take your advanced deft knowledge to said forum. 

Fri, 04/04/2014 - 16:35 | 4626347 Charles Nelson ...
Charles Nelson Reilly's picture

"Hey! who the fuck are you, Huh? who the fuck are you" - Stevie Janowski

Fri, 04/04/2014 - 16:34 | 4626340 nightshiftsucks
nightshiftsucks's picture

But what will those issues cause,will it be deflation or the loss of the petro dollar and hyperinflation ? If it's hyperinflation then stocks might do good and of course pm's even better.

Sun, 04/06/2014 - 18:54 | 4630701 SeattleBruce
SeattleBruce's picture

2 things - stocks doing well under hyperinflation may mean nothing more than treading water, and in some limited hyperinflations like Mexico, that is what happened. But in broader hyperinflation like Weimar, stocks had periods where they did OK, and periods where they drastically underperformed the world markets, and while the top blew off prices and made daily life crazy for average folk.

2nd - if we head into a hyperinflationary spiral that blows up 4 or 5 of the major world currencies that are racing way other to the bottom, we'd enter uncharted territory, and who knows if any world stock market would be OK.

I'd much rather own phyzz in such uncertain times.

Fri, 04/04/2014 - 16:18 | 4626293 McMolotov
McMolotov's picture

"It's just a flesh wound."

Fri, 04/04/2014 - 16:30 | 4626329 Bam_Man
Bam_Man's picture

"In fleshy part of heart."

Fri, 04/04/2014 - 19:23 | 4626808 Its Only Rock N Roll
Its Only Rock N Roll's picture

"it is wafer thin"

Fri, 04/04/2014 - 16:22 | 4626302 booboo
booboo's picture

awww, somebody got their fingers burned today. Now go look at your poster of Yellen in her Wonder Woman tights, donkey punch you BFF tonight and Monday will all be better, pinky pwomise.

Fri, 04/04/2014 - 16:07 | 4626242 SheepDog-One
SheepDog-One's picture

This is simply inconceivable!!

Fri, 04/04/2014 - 16:12 | 4626265 i_call_you_my_base
i_call_you_my_base's picture

That truck thing happened to me once almost exactly. Unfortunately, no video.

Fri, 04/04/2014 - 16:37 | 4626349 NotApplicable
NotApplicable's picture

He was lucky he clipped that tree, otherwise there was a decent chance it would've hit that house.

Fri, 04/04/2014 - 16:13 | 4626273 SheepDog-One
SheepDog-One's picture

'GDP expectations tumbling'.....unless you're listening to the Blowhorn's Joey Baloney Tweets.

Fri, 04/04/2014 - 16:13 | 4626274 buzzsaw99
buzzsaw99's picture

That's not right. How could the price be going down? [/Mortimer]

Fri, 04/04/2014 - 16:50 | 4626376 Squid Viscous
Squid Viscous's picture

You IDIOT! get back in there at once and SELL, SELL, SELL!!!

Fri, 04/04/2014 - 17:31 | 4626515 Pickleton
Pickleton's picture

Turn the machines back on!  Tunr the machines back on!

Fri, 04/04/2014 - 16:13 | 4626275 Make_Mine_A_Double
Make_Mine_A_Double's picture

Yes, but Cramer says Net, AZ, Tes are now 'under valued' so get'em while you can.

I guess I'm old school, but I just don't know how to value companies that don't make any money.

Fri, 04/04/2014 - 19:31 | 4626818 snr-moment
snr-moment's picture

I saw my first 5 recharging stations today.  mY wife says they.ve been there for months,  she's never seen a car at them.   Of course, at -15 degrees farenheit......


And it makes me wonder.....once copper develops it's patina....does it's resistance go up?


aw shit.  My bad.

Fri, 04/04/2014 - 16:14 | 4626276 Manthong
Manthong's picture

FedEx guy thinking: "Gee, I hope no one saw that".

Fri, 04/04/2014 - 16:14 | 4626279 Dr. Engali
Dr. Engali's picture

I had that happen to me once when I was younger after an all nighter at a friend's house. I realized after I forgot to put my car in park and it backed into the neighbor's tree that I probably should have sobered up a little more before driving home.

Fri, 04/04/2014 - 16:48 | 4626385 chunga
chunga's picture

A few years ago a buddy of mine was whining for me to pull over so he could take a piss from all the beer drinking.

I couldn't find any good spots and he kept complaining; so finally I just pulled over. As soon as he got out of the van I drove away.

He wasn't shy about the traffic and continued on with his piss undaunted.

Fri, 04/04/2014 - 16:16 | 4626285 symtex411
symtex411's picture

wait, did we just hear the music stop

Fri, 04/04/2014 - 16:16 | 4626287 seek
seek's picture

This is no accident.

Q1 closed on 3/31 -- and we know all of the BRICs that drive growth tanked in Q1, and the US was impacted by "weather." Earning are going to be bloodbath and it's just now dawning on people with the close of the quarter (and/or insider reports) that bad news is coming and they're all headed for the exits.

That, combined with Mr. Yellen not reassuring everyone that the printers are being rev'd up again, equals today's mauling.

Fri, 04/04/2014 - 17:19 | 4626479 mc225
mc225's picture

maybe a combination of cliques and brics can save the day.

Fri, 04/04/2014 - 16:17 | 4626291 Ness.
Ness.'s picture

Are we saving the deer for the encore?

Fri, 04/04/2014 - 16:18 | 4626295 Bear
Bear's picture

What do you expect ... No POMO Friday and Month-end is over .. Bear on a hunting trip. The real test is what happens next Tuesday. If 1875 is breached by noon on Tuesday, we may have a correction beginning.  

Sat, 04/05/2014 - 04:05 | 4627635 pn17
pn17's picture

Wow, I forgot it was a no POMO day.

Fri, 04/04/2014 - 16:19 | 4626296 Pig Circus
Pig Circus's picture

That door saved the Fex Ex truck from hitting the house. It jerked it just enough.

Fri, 04/04/2014 - 16:39 | 4626360 NotApplicable
NotApplicable's picture

Sorry, didn't see your post when I made the same observation above.

Here's what a day in my job is like. (not much better)


Fri, 04/04/2014 - 17:30 | 4626511 css1971
css1971's picture

The Russian original. (with captions).


The Russian expert is better expressing the frustration and exasperation of "professionals", as opposed to "experts" where the english expert is more dazed and confused. The english version better expresses the condescension of corporate middle management.

Fri, 04/04/2014 - 17:41 | 4626538 object_orient
object_orient's picture

Life's a ball when the idiots are in charge. Someone should make a movie about it.


It's always better not to argue and do exactly as they ask.

Fri, 04/04/2014 - 16:21 | 4626300 ebworthen
ebworthen's picture

Pretty sure the NASDAQ led the ramp to the highs in 2007-2008, and was the bellwether for the crash.

Fri, 04/04/2014 - 16:30 | 4626321 ebworthen
ebworthen's picture

Ad last month in my area for FedEx drivers; 26K/year salary, zero benefits.

Hump packages 10-12 hours per day for FedEx making the equivalent of McD's.

You have got to be kidding me!  Rotating gallery of ex. felons to be delivering your pakcages.

Fri, 04/04/2014 - 16:34 | 4626342 Bam_Man
Bam_Man's picture

Rotating gallery of ex. felons to be delivering your pakcages.

Including your gold and silver. And don't think for a minute they don't know what is in those little boxes you are signing for.

Prepare accordingly.

Fri, 04/04/2014 - 16:39 | 4626357 seek
seek's picture

Hint: if you buy ammo online, they think gold and silver are bullets, not bullion.

Fri, 04/04/2014 - 16:39 | 4626363 orangegeek
orangegeek's picture

Wednesday's NASDAQ100 daily didn't look that strong and diverged from other indexes.




We expected a drop and sure got one today.  The good news was that we were already positioned for this move.  Bank account got a little healthier today.

Fri, 04/04/2014 - 16:49 | 4626390 The Most Intere...
The Most Interesting Frog in the World's picture

LOL... did this with my car one time in a parking garage - long story but car backed down a ramp and bashed up a couple state police cars.  Yep, police station right next door.  Insurance covered it... LOL 

Fri, 04/04/2014 - 16:55 | 4626404 q99x2
q99x2's picture

Thanks ZH for the best daily series of articles in  a long time. This is going to be a great weekend.

Fri, 04/04/2014 - 16:55 | 4626405 wmbz
wmbz's picture

No problem here, the boyz just had a long 5 martini lunch. The machine will be back on track Monday!

Fri, 04/04/2014 - 17:00 | 4626416 Squid Viscous
Squid Viscous's picture

Bang ding Ow! Cramer? should i stick it out... ? help? it aint cheap livin' in a trailer park ...  maybe i should look you up at short hills mall like that other kike that took a few in the skull

Fri, 04/04/2014 - 17:04 | 4626427 joego1
joego1's picture

Looks like the algos are feeling unloved today.

Fri, 04/04/2014 - 17:09 | 4626450 ebworthen
ebworthen's picture

"Momentum, wherefore art thou, Momentum?"


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