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Russell 2000 Enters 10% "Correction" Near 6-Month Lows

Tyler Durden's picture




 

US equity markets were off to the races when stocks opened and Yellen began to speak but the late-day ugliness was written on the wall by a total lack of support from either volume or any other risk-market. The S&P ramped up to last Friday's spike highs, Zero Hedge reminded traders that Biotech P/Es were double what they expected, and the 30Y auction tailed ugly was enough - with a dearth of news (aside from downplayed escalations in Ukraine) stocks dumped and played catch down with JPY (weakness) and Bond (strength). EUR weakness (from Draghi Jawboning) provided the impetus for USD strength but leaves the USD unch on the week. Considerable divergence in bonds today (30Y +3bps, 5Y -3bps) means the curve is steepening modestly. VIX was running stocks today and we slammed back under 13 briefly and closer higher on the day. Ugly day for high beta stocks with the Russell near 6mo lows (and the Dow is back in the red for 2014)

 

The early short squeeze failed quickly...

 

The Russell 2000 had another ugly day and despite the best efforts at a ramp is now down 10% from its highs in "correction" territory and trading near 6-month lows...

 

Another day, another dump and pump... but this time it ended badly...

 

Looks like the Biotechs didn;t like the trth about their risk...

 

As stocks pumped away from USDJPY and then caught back down...

 

And the same with bond yields (though the spike at the auction was fasinating)... look how it perfectly recoupled with stocks!

 

Momos pumped and dumped again... not pretty

 

Still don't believe it was Tarullo! Don't fight the Fed!!!

 

VIX was in charge...

 

FX markst were volatile on the back of Draghi's jawboning promises - but leaves the USD unch on the week...

 

Treasuries steepened on the day with the ugly 30Y auction dragging it +3bps on the day (and 6 on the week)...

 

Commodities were mixed with gold flat, oil and silver down and copper up...

 

 

Charts: Bloomberg

Bonus Chart: The Nikkei 225 is trading at its lowest relative to the Dow in 16 months....

 

Bonus Bonus Chart: "Costs"

 

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Thu, 05/08/2014 - 16:10 | 4740983 Sudden Debt
Sudden Debt's picture

what the hell is wrong with silver?! It hasn't moved for months!

Thu, 05/08/2014 - 16:16 | 4740998 JustObserving
JustObserving's picture

Silver has been continuously manipulated from the day Osama bin Laden was killed for the second time - May 1, 2011. His first death was on December 15, 2001.

Sy Hersh on Osama bin Laden raid: “Not one word of it is true”

http://www.salon.com/2013/09/27/sy_hersh_on_osama_bin_laden_raid_not_one...

Thu, 05/08/2014 - 16:18 | 4741006 power steering
power steering's picture

Yeah, but the Dow

Thu, 05/08/2014 - 18:23 | 4741384 Ghostdog
Ghostdog's picture

With Mid term elections coming up. Dont be suprised to see another Bin Laden sighting.. Maybe three times the charm...

Thu, 05/08/2014 - 16:19 | 4741009 TheRideNeverEnds
TheRideNeverEnds's picture

Silver is breaking down, next stop $15 on its way back to 5.

Thu, 05/08/2014 - 16:21 | 4741015 JustObserving
JustObserving's picture

Wake me up when they pay you to cart it away.

Thu, 05/08/2014 - 18:13 | 4741340 new game
new game's picture

i met a guy the other day giving away silver. so it is at zero...

even a zero i'm not selling:)

Thu, 05/08/2014 - 18:20 | 4741367 Bunga Bunga
Bunga Bunga's picture

When it's zero I'll buy all the silver in the world for one penny.

Thu, 05/08/2014 - 18:31 | 4741411 LooseLee
LooseLee's picture

You, sir, collect $200 and go to the top of 'The List'. Those who know know what I mean....

Thu, 05/08/2014 - 16:12 | 4740989 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Algos to humans...BTFD

Thu, 05/08/2014 - 16:20 | 4741011 101 years and c...
101 years and counting's picture

at least "they" got the defensives to get the dow green so everyone can sleep tonight.  of course in reality, the sheep' 401k is getting hit hard as their growth/high growth funds are being taken out back and beaten.  

Thu, 05/08/2014 - 16:14 | 4740994 monopoly
monopoly's picture

I know. Just to not understand that. But not selling any. Just waiting. And the Russell may be at 6 month lows, but many of my miners are still at 2 year lows....This too shall pass. The most under valued asset on the planet and hated by most except some here. Amazing. But these are markets and they do what they do. Never said markets were rational in the short term. 

Thu, 05/08/2014 - 16:15 | 4740995 jmcadg
jmcadg's picture

When is the DOW actually going to do the decent thing?

Fuckers.

Thu, 05/08/2014 - 18:33 | 4741423 LooseLee
LooseLee's picture

You mean trade 1:1 w/GOLD? It is coming grasshopper. Be patient. It is coming....

Thu, 05/08/2014 - 16:18 | 4741007 Rainman
Rainman's picture

NasDik composite is only 35x earnings .... a steaming buy !

Thu, 05/08/2014 - 16:58 | 4741115 Lin S
Lin S's picture

< sell off all my stocks immediately.

< sell off very gradually or maybe keep some.

Please advise...

 

Thu, 05/08/2014 - 17:11 | 4741162 bam
bam's picture

guys buy twitter! it's cheap now! LOL

Thu, 05/08/2014 - 18:12 | 4741335 Bunga Bunga
Bunga Bunga's picture

Time to buy the dips, Muppets!

Thu, 05/08/2014 - 19:31 | 4741601 bugs_
bugs_'s picture

Mz. Transports is late to the correction party.  Only time will tell if she is fashionably late or head in toilet late.

Thu, 05/08/2014 - 20:07 | 4741708 Spungo
Spungo's picture

That Tarullo guy should probably leave the country. When this giant bubble pops, people are going to say it was his fault. People are fucking retarded. Stansberry said on his podcast that he gets all kinds of hate mail and sometimes death threats because he said GM would go bankrupt. Pointing out the most obvious thing in the world somehow means you are responsible for it.


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