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Schizo Market Has Biggest Plunge In 6 Months Following Most Euphoric Surge Since 2011
Yesterday's panic buying vertical ramp in stocks - decoupling from everything but the trusty partners VIX and AUDJPY - has been entirely unwound as The Dow drops over 300 points (nearly unchanged for 2014), Trannies tumble and Small Caps slump. Stocks all closed significantly lower - despite a late-day effort to lift - ending the day down from pre-FOMC Minutes. Treasuries closed 0-2bps higher in yield but had ignored equity exuberance and provided the reality check by the close. Real trading volatility ranges are surging in the major indices which historically has not been a good sign. The USD retarced some of the FOMC losses as Draghi chatter pushed EUR higher. Oil prices cratered under $85 as gold and silver rose (despite USD strength). Following yesterday's biggest intrday swing since Nov 2011, the Russell 2000 saw its worst day in 6 months.
Today was the 4th most active (in terms of quotes/trades) ever.
Today will be the 4th most active ever (in terms of market data - quotes trades, etc)
— Eric Scott Hunsader (@nanexllc) October 9, 2014
The last 2 days in US equity markets...
The last time we saw a cluster of intraday swings of this size was after the US downgrade in Summer 2011
As stocks - unsurprisingly - catch down to bonds...
Which left the indices well down from the FOMC Minutes...
Yesterday's proclamations about the strength of financials have been blown away as they slumped today...
as Financial stocks continue to catch down to credit...
On the week - despite the S&P regainiong green at the close yesterday, we are now doiwn hard!
Since the September FOMC statement, stocks are all red...
Credit had been pointing the way since early on..
HY Credit widened to one-year wides....
Treasuries inched higher in yield but remain lower and steeper on the week...
FX markets were active with Draghi chatter sending EUR lower and USD higher
Despite USD strength, PMs rose for the 4th day in a row (1st time since Feb) asd oil collapsed back below $85
Charts: Bloomberg
Bonus Chart: Trading Ranges are soaring which suggests something different this time
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Who barfed on the cotton candy?
Whipsawed, Bitchez!
Oh Fuck...Gartman is on CNBC again....after blowing his call yesterday...
he said the markets are going down lower....said he bought some yesterday and ditched the longs early and says market has long ways lower to go...says Ebola threat is real and will cause fear in investors.
I guess that means we go long 9:30 tomorrow and NO more Ebola infections to report from this moment on.
Tonight was the time to go long, they might just gap it up tomorrow
Bad news is usually saved for after hours on Fridays. So tomorrow around this time, we'll learn ebola is airborne. Or even worse, you can get it just by looking at boobs. Markets closed and bank holidays next week.
Plunging and surging... plunging and surging. Damn! I wish we could finally get this toilet unplugged.
Trust me, the hedge funds run by Jews are making a killing over the past 2 days...thx to Fed minutes leaked (Yellen) and CDC lies (Frieden).
So first everyone is complaing there is no volatility and now everyone is complaining there is too much volatility ?
I wonder how many funds are being blown up by this violent zig-zag action. Unless you are an insider or a HFT, you are getting hosed quickly. Tyler, where is the deer in the headlights?
"It ain't debt unless we lever it a million to one."
Still like equities but still haven't pulled the trigger. Too much liquidity being produced (most in US history) and now you have a surging dollar (save for yesterday) which says to me the only thing you want to avoid here is debt.
Interest rates have nowhere to go but higher here and this much cash sloshing around it will find a happy home somewhere in the USA.
The recovery is Total Fail.
We've built the biggest Potemkin Village in history here.
Wasn't this kind of Volatility the basis for the movie Margin Call?
Ukraine, ISIS, Ebola? What's next Marburg? Schweinhund Flu? Bankster Pox?
"...looking at boobs"
I'm starting to feel funny already.
What???????? You can get Ebola looking at boobs. Oh no I'm gonna die........
You don't bet money on such silly ideas. It's now a bear market so you sell t he rallies; I keep doing it; I keep posting the results and the trades right here and no one has enough sense to pay attention.
sure about that?
I do. You called it yesterday. Thanks.
Thank you; that's all I wanted is a simple thank you. Today I short April '14 Feeder Cattle at the Market. This is a very small local market not manipulated by "important people"; it' way too high and it's broken the run; t he plan is to hold on to the shorts probably all the way to t he delivery day in April. You can find all the datails on t he CME page. This is a cyclic market it makes lows in April cause that's when the little calfs are born. yes, I know its stupid; but as I said, nobody pays any attention to it. the idea is to risk about 10-15% of your capital, (with astop loss order); and then if it develops some downward momentum it'll just keep going; these old fashioned agricultural markets trend for months and months. the idea is to make 100% at t he end of the deal. or maybe 60%; something like that; but it takes time and patientce it's not a get rich quick scheme. And; you might g et stopped out. Risk does exist. But this trade has payed off for 15 of t he last 17 years.
No problem. Call it like I see it. I was worried yesterday was at least "A" bottom if not the bottom. You said no, short the next move up or something to that effect. When it reversed this morning I did just that.
Interesting trade you mention above. 15 of 17, that's pretty damn good.
You mentioned you covered your ES short, might I ask why? Could be as obvious as pigs get slaughtered but this may be setting up for a real flush.
Well, even a broken clock is right twice a day....who knows?
now if we could only get rid of that pesky Obola infection we've been suffering
Well technically I dont know whats worse: bleeding red out of your investment account by stupidly taking advice from the Gartman letter, on top of the 30 bucks a month subscription fee..OR...getting Ebola and having your eyes bleed out.
Dude... the second one is worse... way worse.
Of course I know its worse...but only slightly worse.
What's Gartman going to offer his expert opinion on next, astrophysics?
aaannnddd Gartman just said this market drop isnt over, its going to keep dropping. SO, based on him ALWAYS being wrong, im betting we erase all loses tomorrow and finish nice and green going into the weekend
Why do they have on this old fool? I guess he says what they want for his $40 appearance fee.
i don't get it either, sheepdog. Its like CNBS has their very own stolpher on there to trick the muppets. Why anyone still listens to him, and even PAYS for this shit is a mystery to me.
That could be a machine talking to you on the television.
Even if done "live" actually and a human doing the talking.
You just don't know who's in charge of their mind.
$40 more than he makes from his investing acumen... and realistically, probably >$40 more, given his track record.
.
Ebola....the black swan we all knew was out there. And from the Dark Continent no less. Irony on 'roids.
This pretty much happens everytime before a big market correction. I recall similar patterns in 1997, 2000, and 2008. Volitility aways spikes near a big correction.
If only to have a couple billion $$ and a few milliseconds head start.....
The clown who has ebola.
Just hope it's not Obola barf...
Its global colding , no wait warming, no colding , warming. Fuck it!
Climate Change goddammit. If youre freezing your bollocks off we'll tax ya and if you're sweating buckets, well.....we'll tax you more, you carbon dioxide breathing motherfucker.
The thing that is gonna kill these stock junkies is this is a panic day, as opposed to just another day in the gold market.
They care because these stokes aren't worth half their value. Anyone still in PM's doesn't care because they know they are holding something worth many times the value.
So is someone holding a billion tons of coal you moron.
"Just go long" on the other hand...
I covered my short ES position this afternoon for $10,437.50. Not bad for an overnighter. If you want to know how I knew to do this I can explain it; but I'm not doing all that typing if no one is interested.
I am, I will pay with a tip, sell around august 2015.
More power to ya
Dow all the way to FOUR THOUSAND
Oil all the way to TWENTY DOLLARS per barrel
Why?
Just because that is how world works: REVENGE
If you were being posted to West Africa to fight ebola, you might want revenge as well.
With everything they have in Ft.Derrick,I would be going another way though.
Real blood running down Wall street.
Fly the connecting flights from West Africa.
More than likely they don't sanitize the plane.
Just like the camerman picked it up.
Yes. But, next year. Next year. Not far off.
Everytime they shut off the QE spigot the market takes a dump, wonder why?
If central banks want a reset they have the panic of Ebola excuse staring them right in the face. World trade and travel will slow down irregardless. Bias to the downside is here in spades.
lower income people like myself would cry tears of joy if oil dropped to $20 or even $40 a barrel. I have to spend around $60-$70 a week just to get back and forth to school and work. gas at around $1.25 a gallon at the pump would be like getting a very noticeable pay raise. A mostly broke college student can dream right?
I keep wondering how 'the smart money' is doing who went all in fully leveraged 3 Friday's ago, because it was confirmed 'all up from here on out'?
Shills are still shilling.
http://www.cnbc.com/id/102075442?trknav=homestack:topnews:1
i'm beginning to have doubts -
weebles wobble but don't fall down
Watch out !! Don't Break The Ice !!!
Tell me the story again, back in 2014, where you had a sharp stinging pain in your ass...
Uh oh Gartman thinks no chance ebola becomes an epidemic....
certain to become one then
Argh, and he thinks stocks are going down!
Cover!!!!
Just saw that as well Huggy...saying my goodbyes to my few pals.
It's a sure thing now. Gonna miss this place.
Why would Gartman be spouting about medical shit, what is he now an infectious disease expert? For fucks sake, people have lost their mimds listening to some bean counting old douchebag TV guy so he's an expert on everything? Once again, for fucks sakes! Hey let's hear Gartmans personal opinions about infectious diseases....oh wait! He just did that too!
I want to wake up tomorrow and see the Nikkei below 15,000.
Anybody else here just cheering the markets down out of hatred?
The shit show fed "market" has met its match in Ebola.
I do not have a dime in the casino. Whatever it takes to end this nightmare is OK with me. When I can turn on CNBC or Bloomberg and see dead air will be icing on the cake.
Sure, we will all pay the piper for these assholes...but I would rather pay sooner rather than later.
Is that a rhetorical question?
Cheering and weeping at the same time, probably. Most here are undoubtedly invested in stawks. You can always make money on misery, don't you know.
Sure I am.
But a man's got to know his limitations.
I do. Just for spite. Though i know all the uber rich kokk sukkers are out.
I want to wake up some morning and read that Ben (Edward Quince) Bernake's total net worth is below $15,000.
That way even I would be richer than him.
+1
I think the fed's "market" is choking on its own fumes. Ebola has trumped the fed in toxicity.
"A Pew survey found this week that 32 percent of Americans are very worried or somewhat worried that they or a family member will contract Ebola."
http://www.washingtonpost.com/blogs/wonkblog/wp/2014/10/09/why-ers-are-b...
Ok what does it mean then? "Trading Ranges are soaring which suggests something different this time."
Everyone trying to get out 1 locked door with their hair on fire?
Distribution Smart money is trying to exit through that small door with the curtains on fire. Success depends on getting the muppets to come in and take them out. Unfortunately, there are no more muppets - just their pension funds.
Was it another Jewish holiday?
It's ok people, Futures are rallying after hours, we are saved. Phew!!!!
Ah Bollocks!!! they just fell 4 handles in the final minute, we're all doomed, doomed I tells ya!!!
These swings will get bigger and bigger and bigger until the feedback loop pops.
"These swings will get bigger and bigger and bigger while the feedback loop pops."
My ears popped on the way down today...maybe that counts ?
Just sell every Growth Cartel float scam, raise phsyical cash and buy physical gold. DO NOT BUY ANY CALLS OF ANYTHING AND NEVER BUY A CALL FROM A FLOAT SCAM (NFLX, AMZN, GPRO, etc). DO NOT BUY ANY VIX REALTED PRODUCTS (scalping vol is how they play the float/option manipulation game).
Methinks the FED and their masters were a little embarrassed by the blatant greed which left no doubt that the market was manipulated.
A few years ago the MSM would say everyday that the market wasn't manipulated at all by the FED.
Then they changed that to always providing a reason for the manipulation by the FED. Every reason except for the actual reason; wealth transfer.
Yesterday market was middling and then Yellen and the boys released their statement about free heroin for at least another year and the bastards couldn't shoot up fast enough.
Pile of venison in the tail lights
Tenderized nicely!
Fading the FOMC the day after has become a great, rather reliable trade.
My theory: the machines have made FOMC-day trading so perilous, with crazy whipsawing both before, and especially after the announcement, that many standard players take FOMC Wednesdays off. In cases in which we see a mindless post-FOMC ramp, which has happened often post-Bernanke, the next day "smart money" players bring things back to reality. Nothing's certain, of course, but you can almost short in the pre-market with modest stops and little fear. Thanks, Janet, for making our day.
Talk about a rollercoaster, wheeeeee!........
SPX hourly wrap up from last night
http://bullandbearmash.com/chart/sp500-hourly-rockets-35-points-hours/
Didn't think things would turn out this way.
Billions of gallons of fracking water dumped illegally into what's left of Central Valley aquifer. Mainstream media covering this one?
http://rt.com/usa/194620-california-aquifers-fracking-contamination/No, because that is harmless.
gotta get that last bit of dino juice at any cost.
Simpsons says it best, as usual:
https://www.youtube.com/watch?v=gzRxdeW7adM
PMs are still on sale.
Glad I bought 3 days ago.
Where's Bambi? or Ron Bergundy?
Los Angeles, go fuck yourselves !
The marketFed doesn't have enough lithium to tame Ebola.
Seven Flags Wall Street. Wonder what's on tap for tomorrow.
Is the FOMC reading ZH?
Yes
What the hell, where was the gang from the Eccles building today? On the golf course, or surfing porn in the board room all day? Not a problem tomorrow is Friday, Jack Yellen and the boyz will start humping & pumping first thing.
I'm just curious; are there any real people left in these psycho markets, or is it just a bunch of algos trading with each other. Because even if you bought 2 or 3 years ago, you have to realize that your gains could be wiped out overnight. I had some McD and Exxon stock that I bought many years ago and I dumped them like last week's trash when I started seeing the craziness about a year ago. Glad I did.
SRTY, the anti-stawk, had a nice ~ 8% pop today.
Good for any account you can not short (IRA, 401k, et. al.)
Shorting Russell 2K is probably the most volatile index trade, lots of pop the last month.
A market on free base eventually has to pay the piper.....but I'm guessing Mr. Yellen will get to work and give us a few more secondaries before the party's over...
I guess yesterdays fed trading desk patch is leaking today.
It's very common for big swings both up and down to occur in the same time-frame. I still don't see this as extraordinary in the way markets have functioned over the last 50-100 years. If anyone thinks the market will go up forever in a straight line, they will be disappointed.
Nice pretty charts, but meaningless. Markets are plunging because of subconscious social mood... the herd is starting to freak out.
http://www.globaldeflationnews.com/recognizing-changing-social-mood-is-k...
as predicted here...
http://www.globaldeflationnews.com/sp-500-indexelliot-wave-update-for-we...
Mood does seem to be getting ugly out there.
Almost all the Obama bumper stickers have disappeared
Is g. soros still short?
walking under the door
Market turning points are ALWAYS accompanied by extreme volatility at the top/bottom.
These huge swings are in a certain sense the result of leverage magnifying moves which, in a non-overbought market, might only be good for a few points or so. However, when you have levered-up, options-driven stock markets, the indices literally trade in candlesticks. The past few days must have done some significant damage to options, so it's likely we're seeing a lot of hedges unwind here. All that beta-seeking institutional hot money is heading pretty hard into high yield credit, eschewing not only equities but Treasuries and commodities as well. This is what happens when a bubble starts to deflate. Instead of simply disappearing, it looks for another home, which reminds me of a parable.
"When an unclean bubble is cast out of an asset class, it wanders through waterless country seeking a place to rest..."
The final result of these violent swings will actually be a rather broadly diffused and gentle wage-price spiral as all the "extra money" leaks out of asset classes and isotropizes throughout the general economy. The Keynesians will get their beloved devaluation, but none will dare call it inflation due to the accompanying deterioration of collateral. After that, look for King Cash to reclaim his throne and interest rates to explode higher. The lack of investible funds will mean that all the money printing in the world will not be enough to head off the impending deflation.
Pennant-on-a-pole breakout in reverse; when the market gets back, the pole is greased.
When market graphs resemble Rorschacht blots , the inmates have taken over the asylum .
Schizo ? No , Manic-Depressive is so last recession .
Now it is Bipolar Disorder .
Modern Markets , the Musical .
"From Arctic to Antarctic ,
eyes boggle in disbelief .
Where in the world am I ?
But much more than this ,
where's my money ?"
IF this keeps up, its going to age ol' Yellen
this market is so easy to trade. BTFD
The trick is you only report the news every second day. RECORD GROWTH. - YESTERDAY WE REPORTED RECORD GROWTH - RECORD GROWTH - YESTERDAY WE REPORTED RECORD GROWTH - RECORD GROWTH. - YESTERDAY WE REPORTED RECORD GROWTH -