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Death-Crossed Russell Suffers Biggest 2-Day Plunge In 5 Months

Tyler Durden's picture




 

Death crosses; Hindenburg Omens; PBOC, BOJ, and ECB hinted at removing the punchbowl; crappy US housing data; and a Chinese IPO takeout hangover weighed on stocks with Russell 2000 the biggest loser (suffering its biggest high-to-low drop from Friday in over 5 months). The Dow is the only index holding post-FOMC gains (Russell down over 2%). Homebuilders are now down 4% from last week's FOMC statement, post-FOMC high-flyer financials have tumbled red (catching down to credit), and only safe-haven healthcare is holding any gains post-FOMC (Biotech -3%). Treasury yields fell led by the short-end (3Y -3.5bps, 10Y -2bps) back under FOMC levels. The USD recovered European session losses to end almost unchanged as considerable AUD and CAD weakness outweighed GBP strength. Despite being clubbed like a baby seal in Asia, Silver rebounded through the day to end -0.3%, gold unch, oil down, and copper -1.6% as China stimulus hopes faded. S&P 500 lost 2,000; Russell is down 2.6% year-to-date (-6.8% from July highs); VIX jumped most in 2 months to ~14. BABA pinned at $90, HLF smashed -10%.

 

Stocks remain notably rich to the Fed Balance Sheet - as its growth slows to a trickle

 

Russell's biggest 2-day swing lower in 5 months... as the death cross hits...

 

An ugly day for stocks...

 

But since FOMC, even uglier...

 

Who could have seen financial stocks getting ahead of themselves?

 

As only healthcare is holdings its post-FOMC gains...

 

The USD ended the day modestly lower - recovering most of the overnight session losses - with CAD/AUD weakness outweighed by GBP and EUR strength

 

Treasury yields fell on the day, back below FOMC levels... sliding into the close...

 

Silver was dumped and pumped, Copper dropped and gold ended unch...

 

A close-up on the silver liquidations and bounce back...

 

Charts: Bloomberg

Bonus Chart: BABA pinned at $90...

 

Bonus Bonus Chart: HLF -10% on heavy volume, no news... where's Icahn?

 

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Mon, 09/22/2014 - 16:13 | 5244351 TruthInSunshine
TruthInSunshine's picture

And ISIS or IS or ISIL or Hllywd IS-RL of whatever tf they call it now is sending sleeper agents to kill all of us!

Get ready! as the heads of the NSA & CIA & DoD have warned!

Sheeple, GET READY!

*Sponsored by iPhone 6

Mon, 09/22/2014 - 16:19 | 5244393 THX 1178
THX 1178's picture

Wobble Wobble. You can feel it if you try. Wobble.

Mon, 09/22/2014 - 16:31 | 5244442 Soul Glow
Soul Glow's picture

Buy the fuckin' dip or else Yellen will get very very angry!

Mon, 09/22/2014 - 18:09 | 5244863 VATICANT
VATICANT's picture

Then her vagina will consume the world!

Mon, 09/22/2014 - 21:41 | 5245572 homiegot
homiegot's picture

Or just prolapse.

Mon, 09/22/2014 - 16:44 | 5244504 PhysicalRealm
PhysicalRealm's picture

OT and scuse me, but from today's Frontrunning (my favorite post of the day usually)

http://www.zerohedge.com/news/2014-09-22/frontrunning-september-22

this:

http://www.nytimes.com/2014/09/22/us/heirs-to-an-oil-fortune-join-the-di...

Rockefellers divesting $50B in fossil fuel investments. 

Isn't $50B still a chunk of change?

Where's that $50B going to go, I wonder...

 

Mon, 09/22/2014 - 17:16 | 5244618 Omen IV
Omen IV's picture

Rockefeller Brothers Fund - is the focus of this promotion when they sell they can sell to offshore affiliates and complete the loop

 

and show the world they are not manipulating .....everything?

Mon, 09/22/2014 - 17:41 | 5244736 eatthebanksters
eatthebanksters's picture

Politicians give free shit away to get elected.  Prior to 2008 they made hogh dollar low cost loans available to people who should never have been allowed to borrow...the pumped up the real estate market and when the shit hit the fan and values dropped, we all paid for it.  Then, if you were real rich you benefited from ZIRP (another gveaway to please the masses only the masses got fucked).  At some point the tit goes dry and then the baby cries and then the shit hits the fan.  We may not be there yet, but we are getting closer.  This could get real interesting and real ugly real soon.  And, instead of uniting people for a common cause and to help each other out of a tough spot, our leadership is content to divide our people.

God help the unfortunate innocents that will suffer when this implodes.

Mon, 09/22/2014 - 17:05 | 5244569 SAT 800
SAT 800's picture

Silver came through the day like a champ; counterpunching all day, buying evident all day, nice solid chart.

Mon, 09/22/2014 - 17:13 | 5244604 Bastiat
Bastiat's picture

Here's to a couple knee-buckling hard left hooks to the liver. 

Mon, 09/22/2014 - 16:11 | 5244352 tenpanhandle
tenpanhandle's picture

Party on Garth.

Mon, 09/22/2014 - 16:12 | 5244353 flacon
flacon's picture

YES ICAN!

Mon, 09/22/2014 - 16:12 | 5244354 enforcer92677
enforcer92677's picture

Would any of you have an idea of how far down in a day the S&P would have to go to trigger the algo sell orders?  Or is that too broad of a question?  (different for every company or manager)

Mon, 09/22/2014 - 17:16 | 5244616 SAT 800
SAT 800's picture

No idea; all I can tell you right now is what the pros. say about a situation like this; "well, it's the shorts that have the money made, now". We, t he shorts are "suffering" increases in our net worth. Which has a delightful spin off; we get to put in zero loss stops. so we either make a lot or lose nothing. Is this supposed to be difficult? I never could figure out why.

Mon, 09/22/2014 - 16:17 | 5244385 Yen Cross
Yen Cross's picture

  The coke and hookers are on Ackman tonight.

Mon, 09/22/2014 - 16:23 | 5244406 Rainman
Rainman's picture

can't stomach the bastard, but his HLF pyramid short seems to be working.... a tad late, but on time.

Mon, 09/22/2014 - 16:27 | 5244425 TruthInSunshine
TruthInSunshine's picture

Carl "the big Phlegm" iCon(b/c I Can) may *or* may not have already sold his position in Herb-A-Derp.

Mon, 09/22/2014 - 16:21 | 5244407 NDXTrader
NDXTrader's picture

Just shaking the trees so they can jam it higher into quarter end and pick up an extra 2%. Anyone going short into completely made up, blowout earnings will get burned (again). Now late OCtober around 2150 might be a different story

Mon, 09/22/2014 - 16:25 | 5244422 Rainman
Rainman's picture

yup ... 6 trading days to go < 5 for the Rosh Hashanahites >

Mon, 09/22/2014 - 16:22 | 5244411 walküre
walküre's picture

That's far fetched

PBOC, BOJ, and ECB hinted at removing the punchbowl

None of them will do anything to rock the boat and sink the Titanic even when every idiot is screaming by now "Iceberg ahead"!

Mon, 09/22/2014 - 16:24 | 5244414 Carpenter1
Carpenter1's picture

BTFD'ers on the verge of having a religious experience

Mon, 09/22/2014 - 16:29 | 5244429 stant
stant's picture

It used to be buy when there's blood in the street. Now it's when there's shit in the streets

Mon, 09/22/2014 - 16:30 | 5244433 Eahudimac
Eahudimac's picture

WTF?!?! That is bullish in the new normal! We should be hitting new all-time highs today! Fuck me! I just adjusted to down is up, left is right, war is peace and now they go and pull a stunt like this!

Mon, 09/22/2014 - 16:36 | 5244467 duo
duo's picture

I thought baby seals were clubbed up in Canada and Alaska also.  Or have non-Asians figured out a better way?

Mon, 09/22/2014 - 16:37 | 5244473 FieldingMellish
FieldingMellish's picture

Silver put in a beautiful big hammer candle for the day. There is hope still...

Mon, 09/22/2014 - 16:51 | 5244530 Al Huxley
Al Huxley's picture

Comex month doesn't close until Friday so if there's a move up tomorrow and/or Wednesday, I'd bet on it being reversed hard on Thursday.

 

Special bonus tinfoil hat speculation: the commercials/bullion banks are in the process of getting net-long prior to the close of month (as of last Friday they were closer than I recall seeing, and must be even closer after today) and will then stand for delivery at month end, before they can get themselves into real trouble feeding physical to Shanghai at bargain basement prices.  Hedge fund shorties will pull 1929-style leaps from tall buildings as they discover they can't deliver.

Mon, 09/22/2014 - 17:03 | 5244564 FieldingMellish
FieldingMellish's picture

Yeah... record silver OI and the COTs look good for both gold and silver. The USD long and Euro short positions are also extreme. Someone's rubber band is about to snap.

Mon, 09/22/2014 - 17:59 | 5244828 Pareto
Pareto's picture

+100 Al: "Special bonus tinfoil hat speculation:"

Mon, 09/22/2014 - 17:19 | 5244636 Fight-Club
Fight-Club's picture

China accumulating physical on every dip. 

https://www.bullionstar.com/image/2317

So guess who is creating the dips.

Mon, 09/22/2014 - 20:57 | 5245399 HardlyZero
HardlyZero's picture

HSBC is the GLD custodian in London, and HSBC holds both the gold of clients and GLD.  HSBC stores allocated and unallocated Gold.  When the trust GLD issues new shares, the metal to back them comes from HSBC clients, who have unallocated pool Gold stored with HSBC and are willing to sell at the price offered.  Once the authorized participant completes the transaction the Gold is moved from the unallocated vault section to the area specified for GLD. (International Man)

HSBC could have controlling position on the POG in the daily movements, without working the daily fixing which they are also 1 of 4 participants:

Barclays

HSBC

Scotia-Mocatta

Societe Generale

 

Cheaper precious metals so everyone should get some (on the positive side).

Mon, 09/22/2014 - 18:46 | 5244829 Stained Class
Stained Class's picture

BABA PINNED AT $90........That chart looks like the entrance to The Cat Cave....

from Courageous Cat & Minute Mouse  https://www.youtube.com/watch?v=U-44zvFjJ8E

 

(Short-covering the OVER over-allotment)

Before the bottom drops out........

Mon, 09/22/2014 - 19:45 | 5245148 bugs_
bugs_'s picture

$gold death cross today too!  Wowzers.

Rumor has it that Mr. Deflation has decided not to ask Ms. Transports to live in sin but has instead bought a ring and is preparing to pop the question.

Mon, 09/22/2014 - 20:20 | 5245300 HardlyZero
HardlyZero's picture

Been SRTY on and off since April.

Its been like this many times.

Tomorrow Tuesday and lets see what goes on.

Fiat is still in play.

(but keep some Silver and Gold as insurance)

Mon, 09/22/2014 - 21:37 | 5245558 homiegot
homiegot's picture

This shitshow is unraveling.

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