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"Growth" Stocks Tumble To 7-Month Lows To "Value" As Bond Yields Collapse

Tyler Durden's picture


It is perhaps worth reflecting on the smorgasbord of free advice given out by the talking-heads after last night's closing ramp proclaiming the dip to be bought and that everything was fixed once again. It was not. Stocks are making fresh cycle lows and the Nasdaq and Russell 2000 are both now below the 200-day moving-average and appraoching the 10% (correction) from their highs. 10Y is back under 2.6% and the 30Y yield is back at 10-month lows... which perhaps explains why "growth" stocks are back at 7-month lows versus "value" stocks...


Nasdaq and Russell have revsersed all the spike gains...


Bonds are soaring...(as growth hope collapses)


indicated nowhere better than the tumble in growth stocks versus value...


Which one glance at the YTD performance of S&P 500 sectors shows clearly... Utes +11.6% YTD, Discretionary -7.8%

Charts: Bloomberg

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Tue, 04/15/2014 - 13:21 | 4661776 Kreditanstalt
Kreditanstalt's picture

And the lemmings RUSH back into the "safety" of bonds...

From "growth stocks" to "value stocks" to corporate bonds to sovereign bonds to cash to...to...to...

It really is true that only gold extinguishes a debt.  But don't expect mainstream "investors" to realize that anytime soon...

Tue, 04/15/2014 - 13:23 | 4661810 Atlas_shrugging
Atlas_shrugging's picture

so the real question is do you go 6x long at 3:29 or 3:28 today?

Tue, 04/15/2014 - 13:26 | 4661829 SamAdams
SamAdams's picture

This thing is going to feed on itself and accelerate.  Stocks down, bonds up...

Tue, 04/15/2014 - 14:06 | 4662016 max2205
max2205's picture

Tyler....you got Dennis beat on talking the bottom. ...wow nice work dude

Tue, 04/15/2014 - 13:29 | 4661841 NotApplicable
NotApplicable's picture

Every time I see the "safe haven" rush to bonds, I LMAO.

Best game of musical chairs, EVAR!

Sooooo... are the Boomers gonna take out their retirement funds, or are the funds going to take out the Boomers?

Tue, 04/15/2014 - 13:37 | 4661870 Kreditanstalt
Kreditanstalt's picture

Exactly!  Funny thing about them boomers and their mutual fund stocks: if anyone actually WANTS the cash and sells, prices fall and more "value" disappears the more sellers there are and...and...

Want to see a thermonuclear explosion in stocks?  Waiting anxiously for the first dividend cuts...

Tue, 04/15/2014 - 13:18 | 4661785 HRamos_3
HRamos_3's picture

Stocks say no.

Tue, 04/15/2014 - 13:20 | 4661797 SheepDog-One
SheepDog-One's picture

Just ask GM bond holders how safe their investment was when the shit really hit the fan.

Tue, 04/15/2014 - 13:21 | 4661799 TaperProof
TaperProof's picture

Remember the days when people bought gold for safety.

Tue, 04/15/2014 - 13:23 | 4661802 hobopants
hobopants's picture

Russia gets blamed?

HFT gets blamed?

Weather gets blamed?

Am I missing any here?

Tue, 04/15/2014 - 13:29 | 4661843 SheepDog-One
SheepDog-One's picture

No need for blame any longer, just throw out some bad economic news and stawks will rise once again.

Tue, 04/15/2014 - 13:26 | 4661824 kevinearick
kevinearick's picture

Economic War

You don’t have to impoverish others to enrich your self.

The computers, embedded with the win/lose game assumption of the bots developing them, are on the other side of every trade, shorting out due process, rendering the law and all its subjects to arbitrary, capricious and malicious outcomes. If you are trading in this environment, you’re in a queue to nowhere, being fed whatever numbers keep you in the stupid game.

Keep chasing debt, with lost purchasing power, and expect a different outcome (adjust trade for purchasing power to net out the misdirection), or teach your children to teach themselves. Breeding real estate inflation in public housing, with law enforcement and public education as parents, and embedding the result in automation, is not the answer, unless you want to win a stupid game at any cost, in which case you still lose, but don’t realize the losses, until it’s way too late.

Putin is simply exploiting a weakness, which he cannot ignore and maintain his own position. Alternative energies from the past was a really, really stupid move. The only exit the proprietary systems can see is real estate inflation, which is not an exit.

Work is not the enemy; it is the only path to the future, and the percentage of the remaining population that can distinguish work from make-work is quite small. Life is not a game. Don’t waste your time feeding morons that are going to kill themselves in any case.

HAL is a sideshow; government is nothing more than what you make of it. The Fidels of the world just fight stupid with stupid. They are all firefighters setting fires to keep themselves busy. Pot is just a repeat of tobacco, on a much faster timeline. The Cuban Cigar Index is much more revealing than the Big Mac Index.

Wages less than 4x rent can only result in slums and vacuous global cities, which Chimerica has been building by example globally. There are an infinite number of ways to meet the DNA threshold, but exponentializing stupid is not one of them. The date tells you that 24 hrs/wk is more than sufficient, if both sexes want to participate, to maintain the necessary gravity to do whatever you want to do.

If you want the elevator to work, get out of the way. Empire domestication is self-adjusting. Or, keep flipping, as a maidservant to the bank.

Tue, 04/15/2014 - 13:27 | 4661835 A_Nejad
A_Nejad's picture

Let them mother fucker bitchez bleed to death if you ask me.

Tue, 04/15/2014 - 13:34 | 4661865 Kreditanstalt
Kreditanstalt's picture

Has the big POMO ramp started today yet?

Tue, 04/15/2014 - 13:46 | 4661913 Make_Mine_A_Double
Make_Mine_A_Double's picture

The half life of Fed intervention seems to be getting down to a 24 hour cycle.


Tue, 04/15/2014 - 13:50 | 4661928 Bold Eagle
Bold Eagle's picture

Guess who is one of the leading decliners is S&P today? BBY, one of the stocks from the latest "muppet slaying" list by Goldman.

Tue, 04/15/2014 - 13:57 | 4661966 starman
starman's picture

Safe socks? Safe blonds?

Tue, 04/15/2014 - 14:32 | 4662042 HardlyZero
HardlyZero's picture

New 2014 meme's:

Manic Monday.

Terrible Tuesday !

Watchout Wednesday !!

Throwup Thursday.

F***UP Friday.


Yesterday's amazing late Monday ramp must have been using brought forward POMO funding...no more dry powder Tuesday.

Only expect 50% Fibonacci retracements (i.e. Dead Cat Bounces) going forward.

2PM today: Somehow today's ramp needs to overcome the power of Fibonacci, but now physics may be 'in play' and some gravity effects.

Tue, 04/15/2014 - 14:33 | 4662123 Herd Redirectio...
Herd Redirection Committee's picture

The S&P will still be above 1800 two years from now.

Bread, however, will cost $7.50.

Tue, 04/15/2014 - 14:22 | 4662080 pragmatic hobo
pragmatic hobo's picture

... yet nothing look remotely "cheap".

Tue, 04/15/2014 - 15:02 | 4662239 disabledvet
disabledvet's picture

been long SELECT ute's since the 2008 collapse (first Wisconsin Energy then adding a recommendation of Entergy)...both have been outstanding.

The only reason Exelon is up is because they slashed their dividend to zero...so as with GE "phuck them."

Normally i'd be pounding the table on TXU...unfortunately they're sitting on a 40 billion dollar debt that they refuse to pay back.

Duke energy has done great after the Obama Administration declared all out war on coal....thus collapsing the price "just in time for the coldest winter in memory." Not that that prevents the City of Chicago from freezing to death as "the only alternative they have for heating is natural gas" which has doubled in price in one winter.

"Say hello to Mother Russia" as a consequence.

We'll see just how hard these shorts get squeezed as the momo monkey's are all triple short treasuries, trip long beta and all in on a recovery that has never existed.

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