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Trannies Trounced, Credit Clobbered, Bonds Bid With Both Hands & Feet

Submitted by Tyler Durden on 10/01/2014 16:09 -0400

Well that escalated quickly. It appears "bad-news-is-bad-news" once again as ADP was the only saving grace and was just not bad enough to be good (or good enough to comfort escape-velocity-believers). For the 3rd day in a row, stocks saw an opening dump, European close pump, afternoon slump - this time led lower by Trannies (dragged lower by Ebola-scared airlines) down 2.5% (worst in 8 months). The Dow is rapidly approaching unch for the year. Treasury yields collapsed today (2Y -4bps, 30Y -9bps) with 7Y -13bps on the week. 10Y Yield closed at 2.43% with its biggest day move in 13 months. Gold rose modestly as silver and WTI crude plunged once again post-EU close. The USDdollar flatlined amid the carnage in bonds, stocks, and commodities. Lots of potential catalysts for today's weakness but desk chatter about Goldman questioning US growth was notable (as they closed out their growth basket). The Russell 2000 'closed' in 10% correction.

3rd day in a row of opening dump, European close pump, afternoon slump

Once again post EU Close - Silver, Crude and stocks tumbled in sync...

This was Trannies biggest single-day drop in 8 months...

"Sell In May" is starting to look like a good strategy...

VIX slamdown into the close kept stocks off the lows (thanksa to HFTs breaking the CFE)

Leaving the index to blow lower all on its own...

Treasuries, JPY, and Stocks were a one way street today...

as was credit... with a VIX driven bouince into the close

As Treasury Yields collapsed to 10-13bps lower on the week... biggest 10Y move in 13 months

NOTE: Credit protection rallied modestly into the close and Treasury yields accelerated lower - smells a lot like a corporate-bond spread focused liquidation (lift protection as unwind underlyings - which means sell corp bonds, buy TSYs)

and sure enough Huge volume flushed through the HYG ETF as TSYs and hedges decoupled...

Don't tell Financial stocks but Financial credit just hit an 8-month low (wides)...

as all the majors get hammered wider...

The Dollar went nowhere today - JPY strengthened modestly - amid all the craziness...

Gold rose modestly as silver and crude crashed once again...

And a gentle reminder to those that were absent today... (FYI - this is a 2014 updated version of the original) - so Buy The F##king Dip... If You Don't You're a F##king Idiot!

Charts: Bloomberg

Bonus Chart: The Gold-Silver ratio is back at 71 - the same level when Lehman failed...

Bonus Bonus Chart: Japanese stocks crashed today... totally decoupled from USDJPY...

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Wed, 10/01/2014 - 16:12 | 5276907 GET.OFF.MY.LAWN

Wait... I just woke up... Is today 9/30 or 10/1?

Wed, 10/01/2014 - 16:22 | 5276955 kliguy38

Mommy mommy...........where's the FOCHIN DOOR???

Wed, 10/01/2014 - 16:40 | 5277034 xtop23

I'm a fairly intelligent guy and trading this takes a shit load more luck, skill, connections, or a combination of all 3, than I have.

I am reminded daily why I got everything I had, that wasn't nailed down, out of this train wreck.

Good luck to those with the balls to play this thing.

Wed, 10/01/2014 - 16:43 | 5277045 Headbanger

Hey.. NO GUTS, NO GLORY !

And looks like I was right:

http://www.zerohedge.com/news/2014-10-01/russell-2000-enters-10-correcti...

Wed, 10/01/2014 - 17:17 | 5277168 Pool Shark

Gold/Silver ratio now over 70

Silver looks like a screaming buy here...

Gold/XAU ratio at 14.97. Time to buy miners?...

Wed, 10/01/2014 - 21:10 | 5277918 xtop23

Ugh PS.... miners. Good luck man.

Wed, 10/01/2014 - 16:28 | 5276973 aVileRat

Go run around your trade desk.

Need about another 10% down for the big caps to motivate passive "smart money" back into doing their job of picking and investing in growth based on cash flow per share vs. simply laddering/arbing the bond Twisted QE curve.

Destroying all the capital gains for whatever was the "green shoots" of the Obama era should properly motivate everyone to get into the game, or get Activist in the direction of the current New Normal. At this juncture I can not see anyone who started a company post-2007 being happy at the state of their sweat equity, and the outsized returns expected to passive indexing agents who want to ride the 30y lift.

Wed, 10/01/2014 - 16:41 | 5277031 max2205

3:30 ramp worked....thats all that matters

Wed, 10/01/2014 - 16:46 | 5277054 Headbanger

Rat, Do you actually believe your own bullshit?

Scary..

Wed, 10/01/2014 - 16:51 | 5277072 GET.OFF.MY.LAWN

That's just ART CASHIN-ese after the 6th martini...

Wed, 10/01/2014 - 16:56 | 5277087 Headbanger

Thanks dude..

I feel safer now.

Wed, 10/01/2014 - 17:58 | 5277296 aVileRat

You following me from thread to thread now ? Sad.

Figure out yet from Investopedia or ask your PM what the 90d 150, 200d lines mean for option triggers ?

Nothing I said should be shocking, and I think everything I have said is validated. To refresh: 1.) Corporate growth since 2008 has largely been discounted to zero both given forward ROE's and from top down view the implied forward multiples that project the forward growth rate of the mid/micro's growth rates. Given that a large degree of small cap/midcap's reliance on equity performance for wealth creation/luxury consumption; which was the entire point of goosing capital gains to replace lost home equity/asset valuations I think the pullback will temper consumption, hiring confidence and wage expectations going forward. Its just that simple, trading macro101 2.) deflation expectations are growing due to lack of ROE/proof of sales growth, which will accelerate the liquidity trap as more liquidity is horded into bonds/cash, accelerating the problem 3.) institutional players are exiting the space as ZH has documented quite clearly. Until we cross another 10% down, where most institutions have hard requirements on how much cash they can have on hand, or at what point they are required by GIPS to do a full bottoms up review, big money will not enter the equity or IPO market.

and the final

4.) What do current P/CF ratios look like, and after running a strong dollar expectation deck. I'm guessing 4.) is beyond you, and since after 2 years of ZH you have yet to ever post anything close to a top-down macro analysis and opt to parrot whatever is the dejour trending view of the threads; including Nazism.

In short (sic): you have no valid rebuttal, I'll just assume going forward you are still banging your head on a Scott trade webpage going forward.

If you feel anything I have said is offside, feel free to chase me to another thread dipshit, or come up with something more creative than 1 word answers.

Bitch.

Wed, 10/01/2014 - 19:57 | 5277585 Headbanger

Wow, all that for me?

And you even researched all my threads too!?

This is great!

Now keep going!

I rule you.

Now squeal like a pig.

Now turn over porky...

Backing up now.... Beep beep beep beep beep beep...

BTW... Isn't "top down anal-ysis" what you do to cock homo boy??

Wed, 10/01/2014 - 17:25 | 5277191 junction

When the going gets tough, the tough get on their yachts and head for the Carribean. By the way, the job numbers should show a slight drop, the Secret Service director just resigned under fire from Congress.

Wed, 10/01/2014 - 23:04 | 5278374 SAT 800

Trannies trounced, bound at the hands and feet ! At last, we're getting around to the tranny porn. I know we could do it !

Wed, 10/01/2014 - 16:13 | 5276916 Yen Cross

That cartoon is hilarious... Just buy the fucking dip...If you don't, you're a fucking idiot. lol

Wed, 10/01/2014 - 16:39 | 5277017 GET.OFF.MY.LAWN

NEVER.GETS.OLD.

~~~

http://www.youtube.com/watch?v=0akBdQa55b4

Wed, 10/01/2014 - 16:15 | 5276926 Bunga Bunga

Don't worry, Draghi will save Wall St tomorrow.

Wed, 10/01/2014 - 16:48 | 5277066 Headbanger

Yeah... I believe you're right..

For most of the day tomorrow is my guess.

And they a massive, horrible, epic, colossal (a word you don't see much), mean, nasty, ugly... implosion into the gnawing abyss !!

Wed, 10/01/2014 - 16:16 | 5276931 SheepDog-One

Just think, only a week ago everyone was yelling how you're an idiot if you're not piling in fully leveraged.

Wed, 10/01/2014 - 23:14 | 5278412 SAT 800

Not me; I told you to go short and you yelled at me.

Wed, 10/01/2014 - 16:17 | 5276937 RattNRoll

Tomorrow, nearly all gains will be back....btfd same old shit diff day.

Wed, 10/01/2014 - 17:02 | 5277114 eclectic syncretist

I continue to predict that bonds will soon go into an unprecedented bubble beyond all that is imaginable, in a flight to safety panic, followed by an explosion in the value of precious metals as the bond bubble bursts. The two may overlap somewhat, and I am roughly equally long both but plan to sell the bonds first.

Wed, 10/01/2014 - 16:20 | 5276940 Rainman

Three quarters of these bastardz collecting 2 and 20s while the Dow roundtrips back to zero for the year....nice

Wed, 10/01/2014 - 16:21 | 5276944 hobopants

71 G/S ratio...fucking insane.

Wed, 10/01/2014 - 16:22 | 5276949 frankTHE COIN

I bought Bonds with both Hands, Both Feet and I did it with an IOU.

Wed, 10/01/2014 - 16:21 | 5276950 hedgelessWhoresMan

So let me get this straight - I should just buy the fuckin dip?

Wed, 10/01/2014 - 16:33 | 5276996 Bell's 2 hearted

yes ... if you expect to get a pellet from the dispenser next to your cage ...

Wed, 10/01/2014 - 16:22 | 5276954 buzzsaw99

Buy The F##king Dip... If You Don't You're a F##king Idiot!

Wed, 10/01/2014 - 16:27 | 5276975 disabledvet

"A blew a bubble but it was all nitrous oxide...so when I inhaled I found the deflation phucking HILARIOUS!"

Seriously though...we have a big time default risk here no matter what equities do (God save the Queen if we just have a mild coorection. According to our "minders" the recovery is Wall Street itself...AND IT WOULD APPEAR THEY ARE RIGHT!)

Eric Holder bailing is a sure sign this thing is about to blow.

Wed, 10/01/2014 - 16:35 | 5277000 buzzsaw99

imo it's all bs. they are just trying to conjure up some phony volatility.

there is no market, there is only old yeller.

Wed, 10/01/2014 - 16:23 | 5276958 Keltner Channel Surf

A few months early for this, I realize, but what the hell -- ya gotta dream:

(with help from The Mamas and The Papas)

PRE-TAPER DREAMIN’

All my stocks are down, and my mood is gray
I went for a sulk on a cloudy day
I'd be up a ton had I sold in May
Pre-Taper dreamin' on such a winter's day

Stopped in to a Schwab I passed along the way
Well, I pulled up my accounts and I began to pray
You know my broker liked the plunge
He knows I'm gonna trade
Pre-Taper dreamin' on such a winter's day

(flute solo)

All my funds are down, and my hair has grayed
Since I put small caps in the wife’s IRA
If somebody tells her, I could die today
Pre-Taper dreamin' on such a winter’s day

Wed, 10/01/2014 - 16:42 | 5277033 himaroid

HA!

Actually not early. All the trees and grass are already brown in L.A.

Wed, 10/01/2014 - 17:09 | 5277137 Keltner Channel Surf

Never happen here in Kermit-green Ohio.

Just thought about the interesting controversy where some think the original lyrics are “began to pray" and "preacher lights the coals" vs. "pretend to pray" and "likes the cold" (apparently Michelle Phillips and Mama Cass disagreed, singing different lyrics) I've always thought the latter makes more sense: he pretends just to get shelter from the cold, and fits the (potentially) dishonest character in the last line about “if I didn’t tell her, I could leave.” While “lights the coals” could fit with an understanding priest, “likes the cold” again works better IMO, as he’s realistic about what really buoys a winter congregation. (Sorry, my mind is rambling today, par usual).

Wed, 10/01/2014 - 16:24 | 5276966 ghostzapper

but, but, but technically Spider finished "off the lows" are the cool kids no longer beating that drum?

Wed, 10/01/2014 - 16:29 | 5276976 Bell's 2 hearted

Deflation in the cards

Wed, 10/01/2014 - 17:07 | 5277133 eclectic syncretist

Deflation in what? We've had deflation in the cost of electronics for over a decade already now. Deflation in the public confidence in the Federal Reserve to control and stimulate the economy? I can go with that, but not all assets will deflate simultaneously.

Wed, 10/01/2014 - 17:32 | 5277210 Bell's 2 hearted

the recession dead ahead will bring down prices across the board

(latest cpi had a negative print)

not saying it will last, but deflation next on tap

Wed, 10/01/2014 - 16:29 | 5276978 Callz d Ballz

I'll take "buy the fucking dip" Alex for $200

Wed, 10/01/2014 - 16:32 | 5276990 Bell's 2 hearted

Draghi flossing teeth and using mouth wash ... about to go look for a microphone ...

Wed, 10/01/2014 - 16:39 | 5277023 himaroid

Careful. Each time qe announced tbonds sell off.

But I do believe they have lost their mojo.

Wed, 10/01/2014 - 16:41 | 5277041 Bell's 2 hearted

fine with me

10yr yield gonna hit 1% come hell or high water ... the longer it takes the more income i reap before cashing in for capital gain

Wed, 10/01/2014 - 16:38 | 5277011 himaroid

What good are all of these long tbond profits when y'all are all gonna die of ebola?

I shall miss having someone to brag to.

Wed, 10/01/2014 - 16:42 | 5277038 thismarketisrigged

when r these fucking bankers going to start jumping out of buildings?

Wed, 10/01/2014 - 16:45 | 5277052 Spaulding 3.0

Throwback 2011'

This old man and me, were at the bar and we
Were having us some beers and swaping Ideas on shorts
Talking gold, silver and silver wheaton
Old miners and new etf's and the doomers weve beaten

We talked about ben's pomo and all the hell it raised
Then I heard the ol' man say;
Ben is great, leverage is good and doomers are crazy

He said "I fought two credit wars,
Been leveraged and up side down"
What brings you to selling puts?
He said "Damned if I know"
We talked an hour or two about every miner we knew
What all we put them through
Like two old traders will do

We pondered life an death
He light a cigarette with a silver miners letter of credit
He said "These damn things will kill me yet;
But Ben is great, reverse repo is good and doomers are crazy"

Last call its 2am, I said goodbye to him
I never talk to him again
Then one sunny day I think late july, I saw the old mans face
Front page wall street journal, he was a millionaree
he left his fortune to some trader he barely knew, his kids were mad as hell
But me, Im doing well
And I drop by today, to just say thanks and pray,
I left a six-pack right there on his grave and i said; Ben is great,
pomo was good, and doomers are crazy.

Wed, 10/01/2014 - 17:31 | 5277207 Eyeroller