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Dow Dumps To Red For 2014 As Treasury Yields Tumble Again

Tyler Durden's picture




 

Despite two desperate attempts to juice stocks overnight via JPY, US equities opened red and got redder. The selling climaxed when Europe closed and stocks rallied handsomely "off the lows" proving Tepper wrong and the rest of CNBC right (right?) The S&P ramped back up perfectly to VWAP (thank you Michelle) as 330ET BTFD'ers ensured it closed back above the all-important 50-day-moving-average. The Dow did not bounce like its higher-beta short-squeezing cousins and dropped back into the red for 2014. Away from stocks, bonds just kept rallying - but everyone said that couldn't happen - to new multi-month low yields for 10Y and 30Y (-13bps on the week). Commodities lost ground with gold back under $1300 as the USD ripped and dipped to close unchanged on the day. VIX popped back over 13 with its biggest rise in 5 weeks.

 

Don't forget, Europe will open again in a few hours.

Thanks Michelle...

 

Thanks to Michelle, the algos ramped all the way back to VWAP

 

The S&P 500 cash index is down for the week but bounced off its 50DMA for now...

 

The dump stopped when Europe closed for the 3rd day in a row...

 

The day in momos...

 

Dow dumps to red for 2014...

 

Twice overnight USDJPY was run up in an attempt to sprk some momenum into stocks...

 

VIX rose back over 13 but did its best to support stocks late-day BTFD ramp...

 

Bonds rallied once again... to fresh multi-month lows...

 

Charts: Bloomberg

Bonus Chart: Lots of chatter about how low 'high yield' yields are today and that's a bubble... except that the YIELD does not matter - it's the risk premium that matters and that has been showing notable weakness for a while... yes one can relever (good for stocks, bad for credit) but that only happens at the end of the cycle and corporate leverage is already above its previous peak...

 

 

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Thu, 05/15/2014 - 16:07 | 4763854 LawsofPhysics
LawsofPhysics's picture

Thank you Michelle, creative folks are really going to have fun with that picture in the future.

Thu, 05/15/2014 - 16:09 | 4763868 HedgeAccordingly
HedgeAccordingly's picture

again PIMco .. still not sure http://hedge.ly/1jXiQm1

Thu, 05/15/2014 - 16:11 | 4763878 Say What Again
Say What Again's picture

no one is going to look at your web site.  just give it a break.

Thu, 05/15/2014 - 16:20 | 4763925 negative rates
negative rates's picture

I'll tumble for you,...................I'll tumble FOR you. 

Thu, 05/15/2014 - 16:29 | 4763945 The Juggernaut
The Juggernaut's picture

#BlackTitsFeelDifferent

 

 

...this is a caption contest... right?

Thu, 05/15/2014 - 16:31 | 4763960 Say What Again
Say What Again's picture

My reply is so big, it won't fit into 140 characters

Thu, 05/15/2014 - 17:06 | 4764066 Headbanger
Headbanger's picture

OK... How many so far??

Thu, 05/15/2014 - 19:20 | 4764531 Keyser
Keyser's picture

#BuckToothedFookingDemocrat...

I'll be your huckleberry...

 

Thu, 05/15/2014 - 16:36 | 4763974 remain calm
remain calm's picture

Black Treasonist Fighting Democracy.

Thu, 05/15/2014 - 16:51 | 4764004 nope-1004
nope-1004's picture

BarrysTheFamilyDummy

 

Not Mooooochelle

 

Thu, 05/15/2014 - 16:10 | 4763873 Say What Again
Say What Again's picture

Love the pic!!!

I almost sprayed my beverage all over my computer when I first saw the pic.

Thu, 05/15/2014 - 16:21 | 4763877 ebworthen
ebworthen's picture

"BTFATH" or "Is this a Wookie face?" - "Vacation or Bust" - "Bring back our jobs!" - "#1 Big Mac meal upsized!" - "Wanted:  Hung black man who likes Women."

Thu, 05/15/2014 - 16:50 | 4764009 Occams_Chainsaw
Occams_Chainsaw's picture

Royale with Cheese....

Thu, 05/15/2014 - 16:54 | 4764022 LawsofPhysics
LawsofPhysics's picture

I was thinking more along the lines of "Will work for...",  but your last one is appropriate...

Thu, 05/15/2014 - 16:14 | 4763889 Sudden Debt
Sudden Debt's picture

I think I've already seen 50 variations on this pic :)

Thu, 05/15/2014 - 16:23 | 4763931 Ms. Erable
Ms. Erable's picture

Which causes the less savvy viewers to wonder who writes all of those signs?, as we all know Wookies can't write.

Thu, 05/15/2014 - 19:24 | 4764559 Keyser
Keyser's picture

I was banned from a forum for called Moochie a Wookie... They said I had made a racist remark... I apologized for slandering wookies everywhere, but had to remind the mods that Wookies are fictitious characters, so how could the comparison be racist... They didn't buy it as they were all flaming liberals, literally... 

 

Thu, 05/15/2014 - 16:48 | 4764005 Overfed
Overfed's picture

FWOTUS (First Wookie of the US) is a most malevolent looking she-beast.

Thu, 05/15/2014 - 17:37 | 4764143 Cattender
Cattender's picture

it's UGLY!!!!!

Thu, 05/15/2014 - 16:26 | 4763939 Bryan
Bryan's picture

Yeah, she stepped right into that one, eh?

Thu, 05/15/2014 - 16:30 | 4763955 crazzziecanuck
crazzziecanuck's picture

HBO's Veep is starting to look like it's a quasi-documentary now.  Scary thought.

Long live Ianucci.

Thu, 05/15/2014 - 16:44 | 4763994 drendebe10
drendebe10's picture

Yikes..... that be one damn ugly wookie.....  gag

Thu, 05/15/2014 - 16:46 | 4764003 Jumbotron
Jumbotron's picture

B.uy T.he F.ucking W.ookie

Thu, 05/15/2014 - 18:45 | 4764402 JLee2027
JLee2027's picture

BeholdTransvestiteFooledDemocrats.

Thu, 05/15/2014 - 16:07 | 4763856 ebworthen
ebworthen's picture

WalMart misses and J.C. Penney beats.

Hmm...

Thu, 05/15/2014 - 16:09 | 4763864 williambanzai7
williambanzai7's picture

BFDT

Thu, 05/15/2014 - 16:18 | 4763915 Say What Again
Say What Again's picture

Mr. B.,

I can only imagine how busy you will be as a result of the Michelle O pic.

I hope you get paid by the hour!  :-)

Thu, 05/15/2014 - 16:21 | 4763927 negative rates
negative rates's picture

He's exhausted just counting his money!*

Thu, 05/15/2014 - 16:29 | 4763951 Say What Again
Say What Again's picture

He deserves every penny.

No one even comes close to what Mr. B produces.

Thu, 05/15/2014 - 16:29 | 4763949 Save_America1st
Save_America1st's picture

@WB7

 

How about the same pic of the wookie with a sign that says, "#ThePrezIsABathHouseFreak"

Thu, 05/15/2014 - 16:10 | 4763875 Oh regional Indian
Oh regional Indian's picture

Boko Haram

Barak Homo

Sapien Sapien

Yeah!

 

Thu, 05/15/2014 - 16:20 | 4763922 Spastica Rex
Thu, 05/15/2014 - 16:33 | 4763969 Oh regional Indian
Oh regional Indian's picture

That is a great song :-)

Thu, 05/15/2014 - 18:37 | 4764369 disabledvet
disabledvet's picture

Best ever. And of course "Disabledvet wins again."

As the only on the record treasury bull going on over a year (ironic all recent things considered) I'm feel in' good in the neighborhood (financially speaking and vis a vis advice.)

Now cue those Honey Badger videos and let's watch...

Thu, 05/15/2014 - 16:11 | 4763879 medium giraffe
medium giraffe's picture

I prefer this version of that Michelle image:

http://pbs.twimg.com/media/BnJHuEQCcAAAaJz.jpg

Thu, 05/15/2014 - 16:13 | 4763884 El Vaquero
El Vaquero's picture

Flight to safety?

Thu, 05/15/2014 - 16:13 | 4763885 Save_America1st
Save_America1st's picture

FUCK YOU, WOOKIE!!!  HAHAHAHA

Thu, 05/15/2014 - 16:13 | 4763887 Rainman
Rainman's picture

I guess Moochelle's saving the #WTF sign for tomorrow 

Thu, 05/15/2014 - 16:33 | 4763971 mayhem_korner
mayhem_korner's picture

 

 

She exhausted that stack in disappointment the first time Barry dropped his drawers for her.

Thu, 05/15/2014 - 16:15 | 4763896 Sudden Debt
Sudden Debt's picture

She should worry about the kids in America who are sleeping on the streets tonight or shut the fuck up.

Thu, 05/15/2014 - 16:15 | 4763899 dontgoforit
dontgoforit's picture

Most of the stress fractures we're seeing in the world today are the result of electing a community organizer POTUS.  Period.

Thu, 05/15/2014 - 16:15 | 4763901 ms8172
ms8172's picture

BTBMFD!!!!!!  LMAO

Thu, 05/15/2014 - 16:16 | 4763907 dontgoforit
dontgoforit's picture

BTBMFDMOBUTTHAVEATONOFFUNFORNUTINHONEY.  LMAO 2

Thu, 05/15/2014 - 16:23 | 4763929 the not so migh...
the not so mighty maximiza's picture

Buy This Female Dildo?

Thu, 05/15/2014 - 16:26 | 4763937 KingdomKum
KingdomKum's picture

Line up here for vagina inspections

Thu, 05/15/2014 - 16:28 | 4763947 Manipuflation
Manipuflation's picture

+1  I was just wonderering if anyone bought treasuries anymore and if so WHY?

Thu, 05/15/2014 - 18:43 | 4764393 disabledvet
disabledvet's picture

Yep...been long for over a year.

And the reasons are mid cycle corrections (both economic and financial) are normative and to be blunt this Administration hasn't had a growth agenda (ala North Dakota.)

Thu, 05/15/2014 - 16:31 | 4763961 Thermopylae
Thermopylae's picture

What is this? A screenshot from her blacksingles.com account?

And what is BTFD????

Asked my kid and he thought it was - BangThisFatDumper.
No wonder she looks sad.

Don't know why but a Sir Mixalot song keeps playing in my head now.

Thu, 05/15/2014 - 16:36 | 4763975 Bloody Muppet
Bloody Muppet's picture

Don't fight the tape OR the FED.

Thu, 05/15/2014 - 16:35 | 4763973 Jack Sheet
Thu, 05/15/2014 - 16:37 | 4763980 jvetter713
jvetter713's picture

That's a handsome man right there.

Thu, 05/15/2014 - 17:11 | 4764085 Jethro
Jethro's picture

Glad he won the EuroVision contest....

Thu, 05/15/2014 - 16:39 | 4763985 John Law Lives
John Law Lives's picture

I would like to see that sign read: "Will work for food".

Thu, 05/15/2014 - 16:52 | 4764017 Occams_Chainsaw
Occams_Chainsaw's picture

#LetThemEatWagu

Thu, 05/15/2014 - 16:56 | 4764036 FreeNewEnergy
FreeNewEnergy's picture

Stocks down big made me happy, but that pic of Moochie absolutely made my day. 

Thanks, ZH, you're the shizz.

Thu, 05/15/2014 - 17:03 | 4764058 orangegeek
orangegeek's picture

Dow Jones had ugly written all over it yesterday afternoon.

 

http://bullandbearmash.com/chart/dow-jones-daily-falls-support-evening-s...

 

Yesterday's close said down today.  Should continue down.  Yellen is going to try to fluff things tonight, but the taper is on.

Thu, 05/15/2014 - 17:09 | 4764075 nosoeawe
nosoeawe's picture

for the love of humanity, please put that WMD away. and i thought cunt faced yellen was hard to look at.

there is no way that thing was born with a vag. no one on this board can convince me otherwise.

Thu, 05/15/2014 - 17:10 | 4764081 Jethro
Jethro's picture

Barry's Thugs Fly Drones

Thu, 05/15/2014 - 17:18 | 4764103 Atomizer
Atomizer's picture

#DoNotRidiculeHashTagDiplomacy

 

Last post cracks me up.

Thu, 05/15/2014 - 17:19 | 4764113 I Write Code
I Write Code's picture

All the stocks and indexes I follow are still within normal bands and one even closed up a tad after selling down all day.

And there is room - more like demand - for the market to make some inconsequential dips from here over the next 30-60 days. 

I don't really follow the momo's much.

I still think this is Janet's attempt to freeze everything in place so I wouldn't consider BTFD to be much of a priority hey you can always BTFATH tomorrow and it's all good.

Thu, 05/15/2014 - 18:12 | 4764265 Atomizer
Atomizer's picture

They'll bring back.... Former SEC Commissioner on Europe Short-Selling Ban.

http://www.bloomberg.com/video/73860052-former-sec-commissioner-on-europe-short-selling-ban.html

Thu, 05/15/2014 - 18:25 | 4764328 1stepcloser
1stepcloser's picture

Chewie Has Spoken...its best to let wookie win

Thu, 05/15/2014 - 18:56 | 4764453 Herdee
Herdee's picture

The "ramp fail" signals are where the big boys were adding on to go short.

Thu, 05/15/2014 - 20:41 | 4764801 Portuguese Revo...
Portuguese Revolutionary's picture

A pouting wookie??

Holy shit I need to go wash my EYES!!!

Thu, 05/15/2014 - 22:00 | 4765031 Rootin' for Putin
Rootin' for Putin's picture

My advice... Let the wookie win.

Do NOT follow this link or you will be banned from the site!