• Knave Dave
    05/23/2016 - 18:16
    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

"Markets In Turmoil" Russell 2000 Plunges Most In Over 2 Years, Dow Down For 2014

Tyler Durden's picture


The deer is back...


Stocks finally snapped and caught down to high-yield credit's warnings. The worst day for the Dow in 6 months, smashing through its 50- and 100-day moving-average. The Russell 2000 was worst on the day to end July down over 6% - its worst month since May 2012. The S&P's had almost its worst day in 6 months. Trannies dropped 3.4% on the week - the worst in 11 months. Stocks closed at the day's lows.



The week


All major US equity indices close lower in July... The Russell 2000's worst month since May 2012


The Year... Dow Red, Russell -3.6%


Was Yellen right after all?


Stocks finally caught down to credit's warnings...


Dow's worst day in 6 months...



Builders are worst but Discretionary and Staples are now red YTD...


Amid all the carnage in stocks, Treasury yields closed +/-1bps (long-end higher in yield, short-end lower)...


The USD was flat...


Commodity markets were clubbed as we suspect EU closing margin calls (and then US margin calls) hit them... WTI dropped below $98!!



Year-to-date, gold and bonds continue to lead, HY lags...


While talking heads were anxious to explain how there was no panic... the moves in commodities had the smell of margin calls to them as equities demanded more cover...


So to sum up - carnage in stocks... USD flat, bonds flat... Oil monkey-hammered and PMs dumped.

Charts: Bloomberg

Bonus Chart: "Sell In May" worked after all...

Your rating: None

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Thu, 07/31/2014 - 16:07 | 5029058 franzpick
franzpick's picture

Tomorrow will be worse.

Thu, 07/31/2014 - 16:09 | 5029067 moonman
moonman's picture

nope all is rosy tomorrow

Thu, 07/31/2014 - 16:13 | 5029111 Say What Again
Say What Again's picture

I'm confused.  I never heard the go-ahead signal from Yellen or Hillsenwrot, so how did I know I was supposed to go heavy on the puts and short shit

Thu, 07/31/2014 - 16:21 | 5029166 DoChenRollingBearing
DoChenRollingBearing's picture



I just sold some VO (Vanguard MidCap ETF) and VB (Vanguard SmallCap ETF).  Edging closer to the door of bailing on my stocks...


But, it pains me that I have to sell pieces of great American companies, which traditionally have been great investments over time.

On the other hand, "No one ever went broke by selling at a profit."

Thu, 07/31/2014 - 16:22 | 5029187 fuu
fuu's picture

"Year-to-date, gold and bonds continue to lead, HY lags..."


Strange how that keeps happening quietly.

Thu, 07/31/2014 - 16:33 | 5029246 wallstreetapost...
wallstreetaposteriori's picture

Too bad it doesn't happen more loudly, my entire portfolio is treasuries and gold since the taper announcement in december.  Just waiting for the 10yr to hit 1% and make all those interest rates can only go up peeps shut the fuck up.

Thu, 07/31/2014 - 16:36 | 5029275 wee-weed up
wee-weed up's picture

The Gov't has a plan for a crashing Market...

Start a Woar!

Thu, 07/31/2014 - 17:07 | 5029434 jcaz
jcaz's picture


Thu, 07/31/2014 - 17:19 | 5029500 aVileRat
aVileRat's picture

If the market drops, deals will be pulled, which means confidence in liquidity to finance said deals will stop; which will lead to a weakness in gross confidence which will cause a general retreat to cash. Which is what we saw today, as the only thing that was up, was the US$, ironically, because the US$ is drawing -3% at least (margin & WACC may vary)

Since this is a chase for yield, anything greater than 3% ROI (yield to worst) is dead paper, which must upset plenty of bond traders struggling to make a living on 10s30 in Chicago. The Japanese bond pit is a shining example of what happens when the hated market upside breaks, leading to a systemic loss of confidence.

In short? Cheer the dip, savor the dip, but the dip may be here for a long time and the new normal may imply a negative P/L sheet for many spread clippers going forward. At that point, we definitly will see NIRP (real) and perma-structural hiring rotations well below 3% (adjusted, seasonal, U def. changed) for the next 4 years. Not that many will survive that NIRP given increasing short rates & weakening market depth (both of which will chew up 80% of the last bears alive).

Anyone got an evil cat I can buy?



Thu, 07/31/2014 - 17:32 | 5029551 THX 1178
THX 1178's picture

Is this at all related to the most recent taper? What are we down to now? 5 billion a month?

Thu, 07/31/2014 - 17:56 | 5029647 TahoeBilly2012
TahoeBilly2012's picture

TYler that deer looks well protected by that doug fir on his right, me thinks the car driver dies and the deer walks off.

Thu, 07/31/2014 - 18:13 | 5029721 Robinhood
Robinhood's picture

That deer looks like Kevin Henry.

Thu, 07/31/2014 - 18:51 | 5029901 Bill the Cat
Bill the Cat's picture


Thu, 07/31/2014 - 19:11 | 5029975 espirit
espirit's picture

A meaningful correction has to be Putins fault, afterall there hasn't been one till he made the news.


Thu, 07/31/2014 - 19:57 | 5030189 Squid-puppets a...
Squid-puppets a-go-go's picture

nar not Putin

Greenspan. Its pathetic that the herd wont pay attention to mountains of risk until someone like that geriatric chimp pipes up

Thu, 07/31/2014 - 18:14 | 5029729 J S Bach
J S Bach's picture

More QE!  Quick!

Thu, 07/31/2014 - 18:45 | 5029873 nmewn
nmewn's picture

Oh yeah, you know it.

Thu, 07/31/2014 - 17:52 | 5029630 mt paul
mt paul's picture

no bad pussie 

for you...

Thu, 07/31/2014 - 17:47 | 5029600 LibertyBear
LibertyBear's picture

Stock market is rigged, up AND down.

Thu, 07/31/2014 - 17:20 | 5029228 zaphod
zaphod's picture

If this is what happens when the FED only prints $45B/month ($540B/year) instead of printing $85B/month ($1.02T/year, more than the entire 2007 montetary base BTW), just imagine what will happen when the printing or if (gasp) interest rates go up.

When the petrodollar falls, and the ability to print money and have others buy it is gone, most people will be completely blindsided by the crash. That is when the US elects a strong arm ruler to "fix" everything, and the concept of America finally dies.  

Thu, 07/31/2014 - 17:33 | 5029537 HardlyZero
HardlyZero's picture

Believe FED announced this week the QE is now $25B/month.   At this rate should be kaput by October 2014.

I have read allocation $20B to treasuries, and $5B to mortgages/banks/stawks?...get SRTY.

Thu, 07/31/2014 - 16:33 | 5029254 cro_maat
cro_maat's picture

DoChen - The great American companies in my view are the small to medium size companies that are family owned, not listed on a stock exchange and serve not only their own profit interests but their customers & employeees. Oh and they also do not harm the environment or the community that they do business in.

The mega multi-national "American" corporation like Google, Boeing, Microsoft, etc. are not American nor great. They are international and serve shareholders exclusively. As to investments over time (long term buy and hold), I will stick to actual physical resources with no debt attached such as timber, gold, silver, land, tools, production equipment, animals, etc.

Of course I am preaching to the choir as I know that you have a good diversified portfolio in more than 1 country.

Thu, 07/31/2014 - 16:40 | 5029289 Socratic Dog
Socratic Dog's picture

Preaching to the choir, but well said none the less.

Thu, 07/31/2014 - 17:04 | 5029422 Rentier88
Rentier88's picture

MUAHAHAHA...and the rollercoaster downward has just started...!

Thu, 07/31/2014 - 16:15 | 5029121 SumTing Wong
SumTing Wong's picture

Remember this is the end of the month. Everyone was going to sell in the last half hour, and we all knew that.

Tomorrow could be really bad, or it could be all shits and giggles. I'm going for low volume lazy rise into the close on a nice Friday afternoon.

(But if the market represented the economy it would be all-out fucking pandemonium tomorrow as we break all triggers in the first half hour.)

Thu, 07/31/2014 - 16:18 | 5029146 Say What Again
Say What Again's picture

I'm going to say this in the most polite way possible.  What screens were you looking at?  The selling started right at the start of the session, took a mid-session pause, and then continued selling all afternoon.

Thu, 07/31/2014 - 16:29 | 5029226 marathonman
marathonman's picture

Buy the dip?  /sarc

Thu, 07/31/2014 - 17:10 | 5029460 TheSecondLaw
TheSecondLaw's picture

Good sarc - don't hear many shouting that.    And some good, solid pain for the BTFATH crowd today.  I suspect dip buyers might be a bit nervous tomorrow. Let's see.

Thu, 07/31/2014 - 18:41 | 5029852 Keyser
Keyser's picture

Nice day in the VIX... 

Thu, 07/31/2014 - 21:12 | 5030620 garypaul
garypaul's picture

I think he meant that the market closed on it's lows.

Thu, 07/31/2014 - 16:21 | 5029172 jarana
jarana's picture

Let's be macroprudent tomorrow...

Thu, 07/31/2014 - 16:36 | 5029270 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

There was desperate market-manipulated buying in the last 1/2 hour. if we had closed the market at 330, we would have been even further down. 

When the selling volume is high, the manipulation is unable to keep up. Look at the movement during the day, versus the volume. The market was pumped back up every time the volume lagged, but then was beat back down. 

Thu, 07/31/2014 - 17:40 | 5029575 angel_of_joy
angel_of_joy's picture

Cheapskates ! They want to pump-up the market, but without spending what it takes to do it right ...

Thu, 07/31/2014 - 18:43 | 5029865 Keyser
Keyser's picture

Probably overloaded their capcity to hedge the downturn, after all, they whacked all the markets today; metals, bonds and equities... Only so much sugar to go around... 

Thu, 07/31/2014 - 16:56 | 5029392 cougar_w
cougar_w's picture

Paging Richard Whitney ...

Thu, 07/31/2014 - 17:10 | 5029457 SheepDog-One
SheepDog-One's picture

Everyone sold the all-time highs.....to whom? Imaginary greater fools sitting on piles of really dumb money on the sidelines I guess?

Horse shit.

Thu, 07/31/2014 - 19:14 | 5029988 espirit
espirit's picture

401(k)'s = All In.

Fishez, Bitchez.

Thu, 07/31/2014 - 16:18 | 5029141 El Vaquero
El Vaquero's picture



Is this a real (pseudo) market crack appearing, or is this just going to lull the shorts in so that they can take it up the tailpipe?

Thu, 07/31/2014 - 16:20 | 5029160 franzpick
franzpick's picture

Barry will get to the bottom of this.

Thu, 07/31/2014 - 16:21 | 5029169 El Vaquero
El Vaquero's picture

I think you mean "Barry is a bottom." 


Tailpipes and all.

Thu, 07/31/2014 - 16:24 | 5029192 franzpick
franzpick's picture

I used to think "a dick with ears" was a caricature.

Thu, 07/31/2014 - 16:30 | 5029230 tumblemore
tumblemore's picture

given the level of market manipulation for so long when it finally goes under i imagine everyone will be surprised

Thu, 07/31/2014 - 16:34 | 5029256 El Vaquero
El Vaquero's picture

I won't.  I know that something is going to happen, I just don't know when.  The other question is, does our stock market get Zimbabwe'd or does it go crash, or does it go crash, then Zimbabwe'd? 

Thu, 07/31/2014 - 17:07 | 5029442 tumblemore
tumblemore's picture

yeah i meant the actual day it happens.



Thu, 07/31/2014 - 19:54 | 5030162 HardlyZero
HardlyZero's picture

Good Thing: Zimbabwe only occurs if there is a completely out of control printing press and hyperinflation.

Bad (and Good) Thing: the USD printing press is closing down.

Summary: there will be crashing markets and little 'crack-up-boom' since no one has any money in the US any more.


The banks have all the cash, but they will probably use it to pay their employees and buy up cheap land.


 Huge deflation probably everywhere and dead-zombie animal spirits.

Thu, 07/31/2014 - 16:19 | 5029157 J Pancreas
J Pancreas's picture

Of course all is rosy tomorrow, its the first. EBT gets recharged my nigga! We eatin' lobsta 2marr0w!

Thu, 07/31/2014 - 19:24 | 5030033 EBT excepted
EBT excepted's picture

yup, all coming back...I asked a co-worker whether two or three 500 pt drops would convince him..."nope"...

Thu, 07/31/2014 - 16:09 | 5029074 flacon
flacon's picture

It's just a flesh wound.

Thu, 07/31/2014 - 16:19 | 5029153 Keltner Channel Surf
Keltner Channel Surf's picture

. . . said Van Gogh, as he began to paint "Wheat Field with Crows"

Thu, 07/31/2014 - 16:22 | 5029180 replaceme
replaceme's picture

+1 on the suicide ref!

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