Tuesday Trader Temper Tantrum As Yellen Spoils The Party

Tyler Durden's picture


It's Tuesday but not everyone had fun... Having been told by the Fed that small-caps were stretched, investors bid Trannies and Industrials into the green (well the Fed never said they were rich?) Russell and Nasdaq were sold (but only dropped around 1% as every trick in the book was found to "fight the Fed"). VIX slams, JPY ramps, Gold slams... but amid all the furore of the "Sell" momo stocks signal from the Fed, bond markets shrugged (admittedly with some noise) closing flat in 10Y (and modestly higher in yields in the short-end). Gold was monkey-hammered once again, smashed back below $1300 (but remains above June FOMC levels) with its worst 2-day drop in 10 months (breaking its 20, 50, and 100DMA). Biotechs closed worst among Yellen's shorts and Russell 2000 ends -0.65% for 2014.


The not-small-caps-or-biotechs indices stabilized after initial Yellen weakness but Nasdaq and Russell dropped...


And looking at specific names it is clear the sepration between small and not small caps...


VIX helped dragged the S&P off its lows...


"Most Shorted" stocks tumbled on the Yellen headlines...


And AUDJPY was also helping...


Bonds were sold on Yellen's statement then rallied back as stocks weakened.



Gold was slammed once again...


Breaking technical levels...


Credit markets faded into the close...



Charts: Bloomberg

Your rating: None

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Tue, 07/15/2014 - 16:06 | 4960330 Baby Eating Dingo22
Baby Eating Dingo22's picture

Noise, Janet, Noise


Hershey Announces a Price Increase, Preliminary Second Quarter Results and Updates 2014 Outlook



    The Hershey Company (HSY) today announced an increase in wholesale prices across the majority of its U.S., Puerto Rico and export portfolio.

    A weighted average price increase of approximately 8 percent across the company's instant consumable, multi-pack, packaged candy and grocery lines is effective today. These changes will help offset part of the significant increases in Hershey’s input costs, including raw materials, packaging, fuel, utilities and transportation, which the company expects to incur in the futu

    Tue, 07/15/2014 - 16:09 | 4960339 fonzannoon
    fonzannoon's picture

    Tyler seriously give it up man. The banks are ripping higher. intel is currently ripping higher...the fed spoiled nothing. The S&P was down 3 points..that is spoiling the party?

    The only party that got spoiled was the pm party.

    Tue, 07/15/2014 - 16:15 | 4960367 TheRideNeverEnds
    TheRideNeverEnds's picture

    dont forget yahoo ripping higher on dissapointing numbers

    Tue, 07/15/2014 - 16:36 | 4960436 FuzzyDunlop21
    FuzzyDunlop21's picture

    Idk last time someone at the Fed mentioned bubbly biotech stawks they got monkey hammered. And now we have Mr Chairwoman himself saying it. They still could drop. . .I mean I wouldnt bet money on it or anything. Not in this casino of a market. But we could have some down days ahead. And being down >1% after Ole Yeller speaks would be a Fed PR nightmare, and you know how they hate bad headlines. So prop it up today and If it drops tomorrow who cares, they can blame it on the weather or the Arabs or some other bullshit 

    Tue, 07/15/2014 - 16:48 | 4960442 Eirik Magnus Larssen
    Eirik Magnus Larssen's picture

    An interesting person to follow on this issue is Andrew Huszar -- a former Fed employee who managed the first round of Quantitative Easing back in 2008-2009. He later became highly critical of the ongoing QE programs, going so far as publishing an opinion piece in the Wall Street Journal last year titled "Confessions of a Quantitative Easer", in which he publically "apologized" for having enabled Wall Street at the expense of "Main Street". He is active on Twitter as well.

    Tue, 07/15/2014 - 16:41 | 4960459 disabledvet
    disabledvet's picture

    Under any other "paradigm" we'd be having a roaring inflation with zombies rampaging through the streets (ala the 70's.). I created a POSSIBILITY of a "once in a century energy transition thesis" (hydro to coal to oil to the current natural gas matrix) as a counterweight to what is a patently obvious "destroy the dollar" policy response to 2008.

    So instead of too much money chasing too few goods we have a veritable tsunami of production "with zero demand" slamming headlong into a Mt Everest of debt.

    In short prices are falling and...certainly in Europe...it is becoming clear that there are truly awesome amounts of debt that cannot be repaid.

    It is ironic that everyone wants to revolt against the dollar...the USA is one of the few places actually paying it's bills right now.

    Tue, 07/15/2014 - 16:10 | 4960341 NOTaREALmerican
    NOTaREALmerican's picture

    Uh oh,  not the breaking technical levels...    the humanity, oh the HUMANITY!!   (no wait,  that's was for the hindenburg omen.   Where IS that damn thing?)

    Tue, 07/15/2014 - 16:14 | 4960362 nink
    nink's picture

    I used to think 0% was a technical level but now we have NIRP. Who can I pay to take this gold off my hands.

    Tue, 07/15/2014 - 17:35 | 4960588 WhackoWarner
    WhackoWarner's picture

    Me...PICK ME PLEASE. I will buy cheap with cash. Many pieces of paper I will give to you.

    Tue, 07/15/2014 - 16:37 | 4960440 ForWhomTheTollBuilds
    ForWhomTheTollBuilds's picture

    One thing that I have noticed over the last few years (only half paying attention) is that key technical levels function almost precisely the opposite of how they "should" if you are on the doomer/realist side of things.  


    10 year Bond yield shooting striaght up to 3%?  Stops on a dime and moves back lower after mysterious treasury buyer materializes in the dead of night.

    Gold closes above key technical level?  Instant multibillion dollar sell orders come in wave after wave until gold is smashed through every meaningful downside indicator.

    Hinderburg omen?  How about one after another after another with no follow through?


    TA only works against those who try to trade important markets using fundemantal analysis because the fundementals are precisely what must be masked.

    Tue, 07/15/2014 - 16:11 | 4960344 TheRideNeverEnds
    TheRideNeverEnds's picture

    we've been through this aleady; just buy the dip, its free money.  



    Tue, 07/15/2014 - 16:54 | 4960495 disabledvet
    disabledvet's picture

    Continental Resources.

    No one had ever heard of the company ten years ago.

    Tue, 07/15/2014 - 16:13 | 4960355 SheepDog-One
    SheepDog-One's picture

    Hey as long as the banksters are not getting dinged, then all is well!

    Tue, 07/15/2014 - 16:15 | 4960368 Al Huxley
    Al Huxley's picture

    It's almost as if the western CBs knew about the BRICS Bank announcement in advance, and needed to draw attention away from what that will eventually mean for the USD.  Although hey, maybe I'm overestimating the impact, after all it's only about 1/3 of the global population, so at least the US still has its hegemony over Europe...

    Tue, 07/15/2014 - 16:23 | 4960376 NDXTrader
    NDXTrader's picture

    I would guess the BRICS bank has a half life of about 6 months. Those countries are devaluing faster than we are. At least with the Fed there is one villain...with that bank there are at least 5

    Tue, 07/15/2014 - 16:22 | 4960390 NDXTrader
    NDXTrader's picture

    Who knows what it is: every CB in the world printing like crazy, Chinese hot money, corporate buybacks, Kevin Henry, Citadel or Belgium. But this market is like a volleyball in a pool, try to push it down and it just springs back up. This thing, if it goes down at all, isn't going down for long. It's going to take a systematic problem they can't stick a finger in to see a real selloff

    Tue, 07/15/2014 - 16:25 | 4960399 Kaiser Sousa
    Kaiser Sousa's picture


    wait for it.....


    Tue, 07/15/2014 - 16:31 | 4960416 youngman
    youngman's picture

    I bought silver yesterday...thought it would bounce back up today...guess I was wrong again..

    Tue, 07/15/2014 - 16:35 | 4960432 Kaiser Sousa
    Kaiser Sousa's picture

    dont trip...

    has happened to me and a buch of others many times over the lenght of the debt based collapse...

    hold tight...cause we're right.

    Tue, 07/15/2014 - 16:25 | 4960401 buzzsaw99
    buzzsaw99's picture

    i wonder if the squid just happened to be short ...smaller firms as well as social media and biotechnology firms..." this a.m..?

    Tue, 07/15/2014 - 16:29 | 4960407 thismarketisrigged
    thismarketisrigged's picture

    wow, what a fucking shock, the dow finishes positive, as ''investors'' come in and buy every fucking dip and the s&p is flat for the day after being down more than half a percent (not that that is anything to get excited about).


    this ''market'' will never be allowed to fall, the dollar will be worthless, but the dow will be at 100.000 before we know it.


    zimbabwaei, here we are

    Tue, 07/15/2014 - 18:51 | 4960655 Baby Eating Dingo22
    Baby Eating Dingo22's picture

    Is that the place where they wear loin cloths and sew plates in their lower lip?


    Tue, 07/15/2014 - 16:30 | 4960414 youngman
    youngman's picture

    Strange day..Yellen saying the economy is NOT in great shape...PMs hammered down again...but company announcements doing OK...I do not know who to believe anymore..

    Tue, 07/15/2014 - 16:36 | 4960437 Pheonyte
    Pheonyte's picture

    "Trust no one." - Deepthroat

    Tue, 07/15/2014 - 17:19 | 4960537 gcjohns1971
    gcjohns1971's picture

    Well, if you can have a 'jobless recovery' then why not a Fed-'Balance-Sheet-Expanding Taper'?

    By systematically attacking the meanings of words, Policy Makers believe they can convert existence into a "Choose-Your-Own-Reality" story.

    Tue, 07/15/2014 - 17:45 | 4960610 taraxias
    taraxias's picture

    Exactly +1000

    Tue, 07/15/2014 - 18:49 | 4960805 Wait What
    Wait What's picture

    i like that concept. Alphas, Betas, Gammas each get their own realities. Everyone takes their Soma to make sure no one is inclined to get out of line.

    has anyone noticed how many alcohol ads you get exposed to in a given day? or stories about marijuana and its increasing legalization?

    define the meaning of words and you define the parameters of discourse on a matter.

    drug everyone into a stupor and you numb them to the contradictions in the discourse.

    Tue, 07/15/2014 - 18:14 | 4960699 Keltner Channel Surf
    Keltner Channel Surf's picture

    In tomorrow's testimony, Janet will initiate coverage of the autos and airlines with a collective “HOLD” recommendation.  When asked what it might take to change her mind, she’ll say it’s “beta-dependent.”

    Dipping initially, those industry groups will rebound smartly after being touted by noted hedge fund manager I. M. Long in a colorful PowerPoint presentation at CNBC’s “De-levering Alfalfa” conference.

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