The Deer Is Back - Nasdaq Suffers Biggest Loss Since Nov 2011

Tyler Durden's picture

But the pretty people on TV said the Fed Minutes proved they were the most dovish ever and initial claims hit recovery lows... What a total disaster - Equity markets peaked within a few minutes of the open and never looked back - yesterday's "Fed Cat Bounce" gave way to Really Red Thursday...

  • Biotechs -6% worst day since Aug 11
  • Nasdaq -3.2% worst day since Nov 11
  • Russell 2000 -3.1% worst day in 12 months
  • S&P "Growth" -2.5% worst day in 10 months
  • Financials -2.2% worst day in 10 weeks
  • Social Media ETF -4% worst day in 11 months
  • VIX +17% biggest rise in 3 months
  • Nikkei knackered... Hits 14,000 - down 14.25% from highs to six month lows

Nasdaq and Russell are -6.5% from recent highs and the S&P is -3.5% from its highs...


The question is - why did the Fed feel the need to act more dovish? That's why growth is getting slayed and beware the head fakes.

Fed Cat Bounce failed... And an UGLY CLOSE


As the post-FOMC meeting losses are mounting...


And the "growth" stocks have been monkey-hammered since Tarullo said they were in a bubble...


"Investors" (and Hitler) are shocked and stunned that High-Beta works both ways...


Away from stocks, Bonds rallied (with 10Y breaking the crucial 2.64% level)


Commodities rallied


The USD sold off


We leave it to Bob Pisani to sum it all up:

"the bears have the upper hand but people still think it will turn around"

But then again, there was this cherry from some "floor trader":

"it's painful if you own 'em, but you owned 'em a lot lower so you're not really in that much pain"

Tell that to Social Media stockholders...


Charts: Bloomberg

Bonus Chart: GMACandy Crash


Bonus Bonus Chart: Nikkei knackered... Hits 14,000 - down 14.25% from highs to six month lows


Bonus Bonus Bonus Chart: The Nikkei is at its cheapest to The Dow in 15 months...


* * *

Finally, something else of note. Earlier today Nanex believes it may have found another new, if not necessarily rogue, algo operating in the market. According to the analytics firm, multiple orders for 750 eMini contracts appeared on 2 price levels (at least 3, and as many as 8 separate orders of 750 contracts on each price level). This appears to have been to induce the market slightly higher (lower) when the large orders were to buy (sell).


Another occurrence about 20 minutes later.

The Flash Crash in May 2010 was created by HFTs, and according to some, the quote stuffing bottleneck may have been intentional. How long until someone spoofs HFTs and forces them to be the reason for the next flash crash, in the process redirecting public fury from the Marriner Eccles central planners and into nameless, faceless vacuum tubes?

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flacon's picture

My SPY APR 19 186 puts were up 200% today. Bought them at 10:03am, sold half and keeping half. Maybe we get a bounce tomorrow into the weekend, or maybe another sell-off. We are at the top of the Kumo Cloud though.... 

cougar_w's picture

Yay! We all love the deer. It's a pity though, the little fucker never gets a brake.

Thought Processor's picture



All eyes on Japan now.  Bad Sushi on deck...............


Consume at your own risk.  

nuclearsquid's picture

I like the deer as much as the next guy, but can we pick a deer that is actually on the road?


Al Huxley's picture

Headlights, flashlight and gunsites, does it really make a differencee?

smlbizman's picture

dont worry...he wont get rid of fucking funny....

daily bread's picture

Your car just went flying off the road, and you have no seatbelt.

Charles Wilson's picture

I'm just glad it wasn't one o' them GM cars...

Oh regional Indian's picture

No worries, it'll be back up tomorrow for another tension filled weekend for ......hmmm....investors...I guess...another sink into thursday, friday pump, monday surprise....

know when to walk away...know when to run....


whisperin's picture

Yeah, Sunday nite could be a real pisser.  Stir in a little invasion action mix vigorously light fuse and watch fireworks. Where's my popcorn?

TheFourthStooge-ing's picture

You know the "market" has gone all woobly when even the wrongness of Dennis Gartman has become less reliable.

aVileRat's picture


Feels very pre-run to bombs over baghdad. Between Japan on Sunday morning and Putin's invasion window over the next 5 to 19 hours, shit may get very fun.



Silver Bug's picture

These days of the stock market down and GOLD up will be much more frequent in the coming future. Gold is money and will always be money. Keep stacking.

Bangin7GramRocks's picture

Oh no! What should we do! What? Wait til next week for fresh new highs. Ok. Whew! That was scary!

HedgeAccordingly's picture
Is the $SPY getting a "Jump" at key levels from a quant algo? High Frequency Trading

Pairadimes's picture

Another 44% or so, and we'll be back to fundamentals.

stant's picture

Cold War 2 crash

FuzzyDunlop21's picture



NYPoke's picture

Some funny stuff posted here over the years.  This one should rank very high on that list.

new game's picture

that deer has a charmed life-will most definetly live to see another oncoming beamer...

cdm's picture



love me some

zombie Artiodactyla !!!

CrashisOptimistic's picture

We will all bask in red.

But the only thing that matters relentlessly grinds on.

Oil is $103.  SPR threat coming . . . again.

Abundance is the path to nirvana, I'm told.

ParkAveFlasher's picture

The essence of the Tao is reversal.

Al Huxley's picture

Yes, the bottomless well that is the SPR will always be there to save us.  Somedays I think the oil companies should just shut in existing production, cancel exploration projects and just pump the SPR.

ebworthen's picture

"ALLY" financial instead of GMAC.

When they have to change the names to protect the guilty you know it's a Ponzi.

Rainman's picture

that pretty much the deal for half the S&P

101 years and counting's picture

the "markets in turmoil" special on cnbc always comes right at the exact bottom.  dont expect to see this anytime soon.


3%-6% decline?  Big deal.  The 'price' of Silver does that even on good days.

Kaiser Sousa's picture

yeah, but u gotta love how the MoneyChangers just cant stand Silver above $20...

eveery day the same shit at their line in the fucking sand in the "aint nobody really trading" Globex...


medium giraffe's picture

You know, I might actually have to put Bloomberg on for the first time in about a year, just for the lols.

cougar_w's picture

Come for the lols, stay for the tits.

They do have tits, right? Gotta have tits these days.

medium giraffe's picture

That Dominic Chu guy had a fair old pair on him iirc.  Not sure if he's still there.  That Adam guy, he's a tit... um.....

Wait, how about strapons?  They have strapons:

EuropeanBankster's picture

"Investors" are shocked and stunned that High-Beta works both ways...

Best comment today!,

The worst trader's picture

If the VIX is up 17 percent how can TVIX which is a 3x ETF only be up 10percent.?can anyone explain this?

Dolus's picture

From my experience playing both TVIX and UVXY is that they tend to time decay much faster than the VIX. So for instance if there is a 5 % VIX spike TVIX will spike quickly to 15 % but it won't hold it and begin to decay fairly rapidly if the VIX is stable at 5 % for the day and then TVIX will close below the VIX. 

Al Huxley's picture

Probably in the fine print of the prospectus.  Usually they say that its 2x or 3x on a daily basis, which in any kind of sideways market will fucking bleed you to death over a few weeks.  Maybe for TVIX they saw the chance and set the window at 1/2 hour - better be faster than the machines or you're fucked. 


You have to admire their fucking sociopathic dedication to fucking over the retailer though, just when you think they've sprung every trap possible, they invent a new one.

Agent P's picture

TVIX is only 2x...and only when it's going down. 

JenkinsLane's picture

I keep saying to myself "I've got to stop wasting time reading/making comments on ZH" but then

I read ones like yours.

Smiddywesson's picture

A leveraged derivative of a derivative of a derivative is kinda like an artificial lunch meat, Spam, meat filler substitute thingy.  Unless you've studied options, AND these products, you have no idea what you're eating, so of course it doesn't behave the way you thought it should. 

No offense, there's millions of people hedging with and trading these things with no idea whatsoever about what they are, and I in turn have no idea if you're one of them.