Terrible Tuesday - Dow Unchanged Since Christmas Eve

Tyler Durden's picture




 

Today was the Dow's worst Tuesday in 3 months as yesterday's exuberant gains in stocks evaporated on heavy volume. While Polish officials may have been the catalyst, technical levels and AUDJPY weakness were the essential ingredients for today's equity weakness. It appears the pre-payrolls level was key for stocks. Treasury yields plunged back to unch on the week after the Polish Foreign Minister said the "i" world (invasion). The USD sold off but remains +0.25% on the week as gold and silver popped modestly on the headlines. VIX jumped back over 17 (but closed with a 16 handle). Credit markets leaked wider with equity weakness. So good news (macro) was bad news early and then bad news (geopolitics) was bad news later - Fed needs to print some more world peace. The Dow has not gained anything since Christmas Eve.

 

 

Fun-durr-mentals...

 

It seems pre-payrolls levels are key for stocks...

 

Dow pressed to 3-month lows and notably lower on the year

 

VIX broke back above 17 twice today...

 

High Yield creit continues to keep pressure on stocks... and as one wise old credit trader noted today:"HY cash was strong this morning but the BWICs (7 so far) from ETFs have begun" - as ETFs are sold, the underlying components (real bonds) need to be sold and as we have explained numerous times, there is no liquidity to cope with the selling thus creating a notable downward pressure on prices and negative feedback loops...

 

Treasury yields tumbled back to unch on the week after Sikorski's comments...

 

The USD sold off on the Sikorski headlines...

 

But gold was bid... (after an earlier shellacking) and then soild of into the close...

 

Charts: Bloomberg

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Tue, 08/05/2014 - 16:09 | 5050789 Dr. Engali
Dr. Engali's picture

We closed off the lows!

Tue, 08/05/2014 - 16:13 | 5050804 Da Yooper
Da Yooper's picture

no no no

 

Those are just new lower highs as compared to last year at this time

 

come on sheeple buy buy buy

 

come on your broker needs to take another vacation this fall & his boat & Mercedes payment are due

 


Tue, 08/05/2014 - 16:27 | 5050864 Save_America1st
Save_America1st's picture

and yet again, the phyzz is on a screaming sale, "Folks" ;-)

grab a small stack today and wait...still might end up losing further support and if we're lucky we'll see low 19's and maybe even high 18's in paper silver by end of this week or into next week.  Hold some dry powder and ready for it just in case silver hits those numbers. 

Every day and every week the Cartel continues this criminal manipulation is more time for us to stack phyzz. 

As I read earlier somewhere...we've already experienced the earthquake.  The inevitable Tsunami is on the way.  And it's gonna be a world wrecker.

Keep stackin'...

Tue, 08/05/2014 - 16:47 | 5050943 hobopants
hobopants's picture

What the fuck happened to silver? ouch.

Tue, 08/05/2014 - 16:58 | 5050988 DoChenRollingBearing
DoChenRollingBearing's picture

Don't worry about daily  price movements.  Stay the course.  We holders of physical PMs will be proven right in the end.  

As respected ZH member "Rock On Roger" writes:

Stack On

Tue, 08/05/2014 - 17:18 | 5051093 hobopants
hobopants's picture

No plans to give up the good fight, Just kinda shocked it diverged from Gold so much. Me thinks I may need to buy some shiny yellow stuff along with the silver stuff.

Tue, 08/05/2014 - 19:06 | 5051502 max2205
max2205's picture

Winner Wednesday tomorrow

Up 3%

Tue, 08/05/2014 - 22:31 | 5052355 HardlyZero
HardlyZero's picture

I open this article, look to the right of each graph, and see Dead Cats bouncing everywhere.

Horrorshow !

Tue, 08/05/2014 - 17:18 | 5051102 jubber
jubber's picture

I thought the silver stocks at Comex were meant to be at an all time low and would run out by November? LOL

Tue, 08/05/2014 - 17:27 | 5051134 hobopants
hobopants's picture

I've been hearing that crap since 2012

"They just can't keep this up for much longer, my source says inventories at the comex are almost gone! Soon the physical demand is going to call their bluff!" Bullshit.

PMs purchasing power will rise as the result of a catastrophic loss of confidence in the current casino and not a moment sooner. 

 

Tue, 08/05/2014 - 17:27 | 5051140 crazybob369
crazybob369's picture

Fear not Hobo, our day is coming. Let me give my humble opinion of what will transpire: assuming no major Black Swans (lots of grey swans flying around), the Pm markets are probably going to flounder around 1,300/20 for the next few months. Once the Indians lift the tax on gold we'll start seeing a lot of upward pressure on gold. China's economy ain't looking so hot, so they are going to start massive renewable energy construction projects to keep their peoples happy. Most of these projects are going to be solar power projects which gobble up massive amounts of silver. Finally, Yellen is going to shoot herself in the foot by attempting to raise interest rates sometime early next year. The resulting market crash will cause her to panic and turn the currency printers full blast (forget helicopter Ben, this is going to be 747 Janet dumping pallets full of money out of jumbo jets). As these factors cause the PM's to start taking off like a rocket, the clueless 95% or so of Americans that have no PM's will suddenly start trying to buy them like there is no tomorrow. It wouldn't surprise me to see $2500 gold and $75 silver by this time next year. Again, this is assuming no Black Swan (Russia invades Ukraine and U.S. gets involved all bets are off and gold goes to $5000). Remember, however, that the world of $5000 gold will not be a pleasant one. So, let's be careful what we wish for.

Tue, 08/05/2014 - 17:47 | 5051243 Cattender
Cattender's picture

i like that Joke about why they call 'em "Brokers" Because: they make you BROKER!!!! HAHAHAHA!!!!

Tue, 08/05/2014 - 16:15 | 5050815 Bloppy
Tue, 08/05/2014 - 16:20 | 5050842 Winston Churchill
Winston Churchill's picture

Just can't get a dead bat to bounce very high, it seems.

And oil continues to slide.

Are you still BTFD Doc ?

Tue, 08/05/2014 - 17:34 | 5051175 TheSecondLaw
TheSecondLaw's picture

Yeah.  BTFDers gone very quiet recently.

Tue, 08/05/2014 - 23:35 | 5052588 disabledvet
disabledvet's picture

Meh. We're still trading flat..."channeling stocks.com."

No problem blowing bubbles in the micro space...free money for the war effort...Europeans gonna land a satellite on a comet apparently. Probably redirect to Moscow if they get those thrusters fired right. (That'll make plan Ost look like a firework if that succeeds. The Crater alone would probably be a thousand feet deep.)

I recommend stocking up on cold weather gear if that happens. Plus lots of flashlight batteries.

Tue, 08/05/2014 - 17:09 | 5051054 Muh Raf
Muh Raf's picture

I make $1m per month using this one simple trick: http://dailycaller.com/2014/06/26/congressman-accuses-ex-nsa-head-of-tra...

Tue, 08/05/2014 - 16:12 | 5050795 Callz d Ballz
Callz d Ballz's picture

It's a miracle!!!

Tue, 08/05/2014 - 16:13 | 5050800 stant
stant's picture

Tuesdays gone with the wind

Tue, 08/05/2014 - 16:12 | 5050801 FuzzyDunlop21
FuzzyDunlop21's picture

Europe closes in 19 hours BULLISH!

Tue, 08/05/2014 - 16:16 | 5050820 Goldilocks
Goldilocks's picture

Kanye West - Stronger
http://www.youtube.com/watch?v=PsO6ZnUZI0g (4:26)

Tue, 08/05/2014 - 16:18 | 5050832 101 years and c...
101 years and counting's picture

the "market" is a short until CNBC airs the ultimate contrarian indicator show: "Markets in Turmoil".  Probably sometime in late Aug at spx 1600.

Tue, 08/05/2014 - 16:25 | 5050860 Keltner Channel Surf
Keltner Channel Surf's picture

Until then it's "Ratings in Turmoil"  aka "American Greed"

Tue, 08/05/2014 - 16:23 | 5050852 JuliaS
JuliaS's picture

Population of Gaza remains unchanged since 2008.

Tue, 08/05/2014 - 16:27 | 5050865 starman
starman's picture

Wonder what Leis man thinks about all this?

Tue, 08/05/2014 - 16:37 | 5050899 Keltner Channel Surf
Keltner Channel Surf's picture

Breaking News:  Feds, FDIC reject big banks bankruptcy plans aka "living wills" because . . . they didn't leave big gifts to public television and NPR.  For shame.

Tue, 08/05/2014 - 16:42 | 5050921 NOTaREALmerican
NOTaREALmerican's picture

It's all because that guy in the cubile next to me sold his Apple stock last week.   

When that guy doesn't BtFD there's trouble in River City.

Tue, 08/05/2014 - 16:43 | 5050925 q99x2
q99x2's picture

Are the trannies going to be going down tonight?

Tue, 08/05/2014 - 16:51 | 5050968 Spungo
Spungo's picture

Sikorski found dead. Suicide by nail gun.

Tue, 08/05/2014 - 16:58 | 5050991 NoIdea
NoIdea's picture

The market hasn't been this cheap since June! BTFD!!!!

Tue, 08/05/2014 - 17:18 | 5051097 edifice
edifice's picture

Shit, DOW is the same as my sex life. I think Xmas was the last time...

 

TMI?

Tue, 08/05/2014 - 22:07 | 5052247 Hulk
Hulk's picture

Brings new meaning to "Ho, Ho, Ho " !!!!

Tue, 08/05/2014 - 19:20 | 5051552 Muppet
Muppet's picture

Hoped ZH had more about todays selloff.  Last weeks move turned a few heads.  A tipping point?   Monday's BTFD was typical but todays lack of commitment (on a Tuesday) and after last weeks action....  could it... maybe... be the start of a meaningful breakdown?   

For the record, I'm optimistic & hopeful that things could breakdown so we can get back to something closer to reality.

Wed, 08/06/2014 - 01:42 | 5052832 Seeing Red
Seeing Red's picture

Good thing the loop feedback is negative -- that indicates the situation is inherently stable.  Nobody here wants a crash after all.

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