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Stocks Suffer Worst Losing Streak Since 2011

Tyler Durden's picture




 

The year's best performing major index was its biggest loser this week. Trannies tumbled almost 4% - the worst week in 22 months. The rest of the indices fell 2-3% with the Russell 2000 down 4 weeks in a row for the first time since November 2011. Dow ends -0.5% and Russell -4% for 2014. Away from stocks, Treasury yields collapsed today erasing most of the post-GDP losses and ending the week only 3-5bps wider at the long-end and 1.5bps lower at the front-end. 10Y closed under 2.5%. The USD Index mirrored bonds, surging on GDP and then plunging today to end the week up 0.35%. Gold and silver oddly decoupled today (silver lower) ending week down 1% and 2% respectively on the week. Ugly week for WTI crude, ending under $98 (Feb lows) down 4.4%.  High-yield credit spreads rose 9.7% (to over 350bps - worst since Nov 2013) for the worst non-roll week since May 2012.

 

Equities actually held gains post payrolls...

 

But end the week notably lower... Worst Dow Friday in 12 weeks...

 

Builders have tumbled to 9 month lows...

 

Equities caught down to credit's post MH17 warnings this week...

 

Big roundtrip for Treasury yields this week...

 

FX roundtripped too as GDP gains gave way to Jobs losses... still up 0.35% on the week...

 

Gold and Silver oddly decoupled today...

 

But oil prices tumbled the most - down 4.3% - the biggest drop in 7 months...

 

Charts: Bloomberg

Bonus Chart: High-Yield is flashing bright red...

 

Bonus Bonus Chart: Camera-on-a-stick down 15%...

 

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Fri, 08/01/2014 - 16:07 | 5034545 Motorhead
Motorhead's picture

Charts, bitchez!

Fri, 08/01/2014 - 16:09 | 5034553 knukles
knukles's picture

'Bout time armageddon got here. 
Need moar "Me me me me me them them them me everything's just fine speeches".
Gives new meaning to Droning People, no?
Bitchez, Bitchez!

Fri, 08/01/2014 - 16:51 | 5034805 Groundhog Day
Groundhog Day's picture

We're not even off 5 percent off the highs

Fri, 08/01/2014 - 17:06 | 5034905 knukles
knukles's picture

OK OK... spoil  sport.

Fri, 08/01/2014 - 18:30 | 5035242 Save_America1st
Save_America1st's picture

"gold and silver "oddly" decoupled today..."

Exactly, they did decouple, but I don't think it is odd at all...I think it's to be expected for a little while longer.

TPTB kept "paper" silver down while allowing "paper" gold to rise.  Something tells me more is up with this end of the London silver fix coming in 2 weeks than anyone knows yet.

They don't want to and they can't allow silver to get legs and take off just yet.  This derivatives shit with trillions and trillions in paper silver contracts being in jeopardy after August 14th could be massive for real physical silver. 

There isn't enough silver in the history of the universe to cover even a fraction of those derivatives if/when they totally fucking implode and nobody can deliver a fucking ounce to anyone.

But they lose either way.  They have to continue to keep the paper price low or risk a stampede.  At the same time that gives the phyzz buyers great prices to keep on stackin' and take more phyzz off the market for a very, very, very long time.

This also causes major supply shortages...which are about to hit big time and again this puts massive pressure on all these derivatives with just 2 weeks to go until the end of the London fix system and a possible explosion/implosion all at once.

Stack now while you can.  20.30 is cheap!!!  What's the downside risk at this point compared to the unbelievable upside potential once the paper Crimex bullshit finally goes bust???

Think about that...

Have a great weekend, ya'all!!!

Fri, 08/01/2014 - 16:20 | 5034640 SAT 800
SAT 800's picture

Here we go again; we'll have to be listening to the goddam ignorant buy and holders whine and whinge as their "retirement" goes down.

Fri, 08/01/2014 - 16:24 | 5034660 greatbeard
greatbeard's picture

>> the goddam ignorant buy and holders

Other than the metal bugs, those ignorant buy and holders have been pretty brilliant over the last few years.

 

( I'm truely of the ignorant class, I'm a die hard buy and hold metal bug)

Fri, 08/01/2014 - 16:31 | 5034710 SAT 800
SAT 800's picture

Not the same at all; you will receive your reward my son for your faith in the real.

Fri, 08/01/2014 - 16:34 | 5034722 nink
nink's picture

Silver and gold decouple because silver is used in manufacturing process and gold is a store of wealth. No consumption equals no manufacturing so no demand for silver and that means invest in gold. I see bitcoin went up today as well.

Fri, 08/01/2014 - 18:41 | 5035348 Save_America1st
Save_America1st's picture

you're leaving out the blatant, massive trillions in paper short manipulation with silver, not to mention the silver to gold ratio which is still a very high 63:1.

For your fiat, silver is clearly the best buy at that ratio...depending on what your ability to buy is, I would suggest buying phyzz at right around that ratio....60+ ounces of silver to 1 ounce of gold.

Silver will greatly appreciate vs. gold once this shit blasts off.  Just like it did 3 years ago.  The ratio at the peak in 2011 got down right around 30:1.  That's not even really very low...should be closer to 15:1, but the reversal came at 30:1 and they bashed the shit out of sliver after that and drove the ratio back up.

So still....if you played your timing right, then THAT'S when you capitalize on the silver to gold ratio and trade in your cheap silver for more ounces of gold.  You increase your stack and your wealth by only having to pay a little extra premium at that point.  Those who did that in 2011 could now trade some very cheap ounces of gold for fat stacks of cheap silver right now.  Then just wait for the reversal and do it all over again.

Gold is a store of wealth, yes...but that does not mean silver isn't as well.  It's just as much a store of wealth over time as gold is.

Think of it this way...in 1964 the avg. hourly minimum wage was 1.25/hour.  Up until 1965 that meant you could make five 90% silver quarters per hour.  At today's criminally manipulated and supressed silver price, those 5 quarters of 90% silver are worth $18.37.  With all the bitching from the Left-tards about trying to raise minimum wage even they aren't asking for that much per hour, are they???  LOL  At 25/oz silver that value comes to $22.61.  Don't tell me most high school drop-outs working at Shit-Donalds wouldn't love to be paid with 5 silver quarters an hour if they could even possibly understand how much those quarters were worth in shit fiat paper dollars.  

So there's your store of wealth.  Just like 100 years ago a 20 dollar gold coin would buy you a nice suit.  Well, a 1 ounce gold coin today would still buy you a nice suit.  When gas used to be .25 cents a gallon those would have been silver coins people used to pay for that gas.  A silver quarter today is worth $4.52...you could buy 1 gallon of gas and actually get a dollar back in change! 

That's a store of wealth...and that means storing it for the long haul.  Silver and gold are insurance against the end of the fiat dollar system and the end of fiat currencies all over the world.  That's a store of wealth.

And don't forget the fundamentals of actual existing above ground phyzz...it's under 15:1 and not much more is being dug up.  So silver will most definitely come into parity with gold again after all this manipulation finally ends.  And I hope it does.  I'm 50/50 right now on that, but we're closer today to it happening than ever before and getting closer every day from now on. 

The U.S. misnt released it's numbers today as well.  "Somebody" is buying record numbers of ASE's compared to AGE's once again at a pace of 100:1 so far this year.  I know it's not just us small percentage of stackers.  So big pockets are going for silver BIG TIME this year once again. 

I think it's the very rich who know silver is most definitely a store of wealth.  And I think it's also certain industrial buyers because they know silver is becoming the most rare precious metal on the planet.  And don't think the most rare precious metal on the planet is not considered a very, very, very precious store of wealth.  They just don't want the sheeple to know about it which is why they bash silver and bash us stackers.

That couldn't be a better contrarian indicator for me to stack as much as I possibly can in the short time we have left before true physical price discovery explodes multiples higher!!! 

We won't even price silver in fiat dollars at that point...why would we want to???  There won't be any number of shit Fed Reserve fiat debt notes that will talk me out of my phyzz after it all goes bust. 

True wealth will be measured in ounces (both gold AND silver) when those days come.  Not measured in shit dollars. 

That's a store of true wealth. 

Keep stackin'!!!

 

Fri, 08/01/2014 - 16:30 | 5034695 SAT 800
SAT 800's picture

It's not enough ! They deserve more ! More, I say ! I want a complete collapse !

Fri, 08/01/2014 - 16:49 | 5034792 Cattender
Cattender's picture

OMFG!!!!!!!! is THIS it.... Finally.... (?)

Fri, 08/01/2014 - 17:17 | 5034965 junction
junction's picture

But there is some good news on the merger and acquisition  front.  Allergan, tired of waiting for the corrupt SEC to act, is suing Bill Ackman for insider trading.  |

 

Allergan Questions Ties Between Valeant, Pershing Botox Maker Files Suit Accusing Pershing, Ackman of Insider Trading by Anna Prior, Wall Street Journal  Updated Aug. 1, 2014 3:13 p.m. ET http://online.wsj.com/articles/allergan-files-suit-versus-valeant-pershing-1406908244#livefyre-comment

Allergan Inc. AGN -0.14% fired the latest shot in its battle with Valeant Pharmaceuticals International Inc. VRX.T +1.09% and Pershing Square Capital Management L.P.'s William Ackman, calling into question the legality of the pair's relationship leading up to and during their takeover bid for the Botox maker.

In a lawsuit filed in a California federal court on Friday against Valeant, Pershing Square and Mr. Ackman, Allergan accused the pharmaceutical company and hedge fund of insider trading and other fraudulent practices, as well as failing to disclose legally required information in the process of making their hostile $53 billion takeover bid for the Botox maker.

After repeatedly being rebuffed, Valeant took its bid for the company directly to shareholders, launching a tender offer in June and seeking a special meeting to remove the majority of the company's board.

Valeant responded by calling the complaint baseless and said Allergan's "true purpose" in bringing litigation is to attempt to interfere with shareholders' efforts to call a special meeting.

"This is a shameless attempt by Allergan to delay the shareholders' fundamental right to call a special meeting and vote their shares," Mr. Ackman said.

"Allergan's determination to waste money on a baseless lawsuit against its largest shareholder demonstrates why this board of directors should be removed."

Allergan's complaint points specifically to purchases of its stock made by Pershing Square between February and April, with Allergan saying Pershing was fully aware of Valeant's nonpublic takeover intentions.

"It is important that the rights of the company's stockholders not be infringed by the actions of one hedge fund that significantly profited (to the detriment of other stockholders and the market) by trading in Allergan securities while in possession of material nonpublic information regarding Allergan," the company said.

Allergan also accused Valeant and Pershing of releasing false and misleading proxy solicitation materials that misstate the pair's relationship and intentions regarding a deal. The company said Pershing and Valeant have repeatedly misstated the certainty of the proposed deal and the value of the consideration being offered to Allergan shareholders.

Allergan said it is seeking a declaration from the court that Pershing and Valeant violated insider trading and disclosure laws, and an order rescinding Pershing Square's purchase of the Allergan shares it acquired during the period in question.

Allergan and Valeant have been locked in a bitter battle since late April, when Valeant and Mr. Ackman's Pershing Square Capital unveiled their overture for the California-based Botox maker.

Pershing Square built a position of about 9.7% of Allergan and is attempting to call a special meeting of Allergan shareholders, where it would seek to remove six of Allergan's nine directors and open the door for the cash-and-stock offer to proceed.

Valeant itself has sought help from regulators in its bid to push forward. The company said last month that it had contacted regulators in Quebec and the U.S. about what it described as false statements made by Allergan. Valeant said Allergan falsely asserted in a Securities and Exchange Commission filing that pharmaceutical sales for Valeant's eye-care unit Bausch & Lomb, which it bought last year, were stagnant or declining.

Allergan, meanwhile, got more ammunition to play defense Thursday. Valeant's shares fell, after the company slashed its 2014 guidance for its revenue and earnings-per-share. Since more than half of Valeant's hostile offer for the Botox maker is in the form of stock, the value of Valeant's bid dropped too.

 

Fri, 08/01/2014 - 17:31 | 5034967 oudinot
oudinot's picture

To be honest, chart analysis would have been a wonderful analytical tool if the first chart analyst would have kept secret his analytical tools rather than educate the public.  Alexander the Great , just before he died, sent a letter to Aristotle (his tutor when he was a young man) chastising Aristotle for explaining in a pamphlet how to interpret his writings.  Alexander felt strongly that the 'unwashed' should not have access to this knowledge, making it commonplace  and of no use to the aristocracy.. 

Everyone now knows now about Fibonacci numbers, head and shoulders, resistance, etc.

Such that, like Heisenberg priniciple-the observer pollutes the process destroying the technical, unalloyed chart analysis as their observations, en mass, is executed in the market interfering, skewing  the natural market moves the chart analysis people originally  discovered.

Fri, 08/01/2014 - 16:07 | 5034550 JRobby
JRobby's picture

Bloody Monday! Oh the humanity!

Fri, 08/01/2014 - 16:13 | 5034594 101 years and c...
101 years and counting's picture

now we sit back and wait for the 1 headline that will send stocks down 3-5% on monday.  good luck to the bulls.  they're going to need it (and a tampon to stop the bleeding).

Fri, 08/01/2014 - 17:18 | 5034982 Greenskeeper_Carl
Greenskeeper_Carl's picture

No way. 1.5 billion gold dump, and an over night usdjpy move sends stock futures back up Sunday night, where they will close modestly green on Monday, followed by a nice turbo Tuesday ramp, for no reason, which will erase any loses from this week
(Not a stawks cheerleader by any means, just my prediction in this 'new normal')

Fri, 08/01/2014 - 16:09 | 5034563 fonzannoon
fonzannoon's picture

someone came in and bought the shit out of HY today. 

Fri, 08/01/2014 - 16:10 | 5034572 monopoly
monopoly's picture

Always love the bonus chart and what a great wrap for us here. Even I understand it all. lol

 

Fri, 08/01/2014 - 16:11 | 5034578 Rainman
Rainman's picture

Go ahead and place your shorts, boyz, I dare ya.

Fri, 08/01/2014 - 16:15 | 5034604 monopoly
monopoly's picture

No way. I have said it again and again here. I do not short these broken markets. Someday sure. But nope, not yet. They will go down without me for now.

Fri, 08/01/2014 - 16:24 | 5034657 SAT 800
SAT 800's picture

You short tops. Tops; not movements. trend following is just a complicated way to go broke. My shorts have been in place since 07/07/14. And they're December Contracts. You short things when they make "world record highs"; not when they've already started crumbling at the top; that's too dangerous; you can get whipsawed. Right now, I have zero loss stop orders in; and absolutely nothing to worry about.

Fri, 08/01/2014 - 17:10 | 5034926 Wait What
Wait What's picture

"December Contracts"

ZH minds think alike. kudos to you.

Sat, 08/02/2014 - 12:31 | 5037679 Spine01
Spine01's picture

Just make sure that you use trigger orders. Trigger you sell orders with your preferred trigger and then limit sell them, at a value way below the trigger. This is the only way that you can minimize the probability of your limit order to be bypassed by a rapidly falling market. This has happened before to a lot of people, even professionals. Never just trust a limit sell market order, by the time it goes to execution market value could be well below you desired limit and zero loss becomes a HUGE loss. But if you trigger your order above your zero loss point with some event or combination of events that you decide are a market crash, then you can sell at limit at that point with our limit way below the trigger point, thus maximizing the probability of you actually being able to sell at a zero loss.
On the flip side if you place a limit sell limit order, your order could be bypassed by the market coming down so fast that you never get to sell unless the stock value comes back up, in which case you'd been better off not selling. This last event happened to a lot of people during the several flash crashes we've had. Always trigger your orders.

Good luck! And remember, everybody and their mother is expecting to be able to get out at a zero loss limit! But when the door is as small as it is today, given the number of people that are expecting to be able to get out in time, there will be a lot of injured people on the way out!

Fri, 08/01/2014 - 16:14 | 5034601 JRobby
JRobby's picture

High-Yield is flashing bright red...

I was gambling in Havana, I took a little risk..........

Send lawyers, guns and money. Dad, get me out of this.

Fri, 08/01/2014 - 16:24 | 5034663 BeetleBailey
BeetleBailey's picture

"Trannies tumbled almost 4%"

Good thing mine was wearing flats!

Hey Ho! Get back in da house bitch!

Fri, 08/01/2014 - 16:27 | 5034682 nink
nink's picture

Oil keeps going down and gas at the pump keeps going up. Inverse correlation = MOAR printing

Fri, 08/01/2014 - 16:35 | 5034731 Winston Churchill
Winston Churchill's picture

Oil is telling you what the real players think .They aren't buying the govt. BS

anymore.

If I was in this market, I would be heading for the exits right now, before Mondays

rush hour.

But then again , I would already have exited in May.

Fri, 08/01/2014 - 16:30 | 5034696 Row Well Number 41
Row Well Number 41's picture

What the hell happened to GDX at the close?

#41

Fri, 08/01/2014 - 16:57 | 5034843 Keltner Channel Surf
Keltner Channel Surf's picture

The only annoying thing about this is Goldman a few days ago issued a contradictory (what else is new?) short term 3-month "Sell in July, Come Back and Re-Buy" recommendation, and if they end up being correct it'll be the first thing they've gotten right since the 1st Bush administration.

Fri, 08/01/2014 - 17:10 | 5034928 knukles
knukles's picture

Oh come on, now.  They got made a bank during the crisis, access to the discount window and all sorts of free fucking money, and their man at Treasury, Hankie-Pankie did get them a squeeze of a few billions from AIG, et all, not to mention (ginormous list)

Fri, 08/01/2014 - 17:15 | 5034961 Keltner Channel Surf
Keltner Channel Surf's picture

Heh, heh ... I meant their muppet-slaying market calls, not their favorable "strategic business alliances"

Fri, 08/01/2014 - 17:07 | 5034904 Eyeroller
Eyeroller's picture

If stocks plunge Monday, then this is the beginning of the "big one".

If it's BTD Monday, and markets push into the green, then the bubble pop has been postponed.

Is the Ponzi Munchkin scheduled to speak anywhere on Monday?  If so, look for extreme dove-talk.

Sat, 08/02/2014 - 08:39 | 5037121 world_debt_slave
world_debt_slave's picture

the shearing continues

 

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