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Dow Turns Negative For 2014: Stocks Suffer Worst Week In 3 Years
Quite a day...
Dow Transports -6.9% - worst week in over 3 years - closed under 200DMA
Dow -2.6% on the week - given up all its gain year-to-date
Nasdaq -4.4% on the week - worst week in 30 months
S&P cash trades down to its 200DMA
VIX +40% on the week to 21 - 2nd biggest week in over 4 years, highest close in over 8 months
Treasury yields close at 2014 lows, down 10bps (30Y) to 17bps (5Y) but the modest steepening still leaves 2s30s under 260bps, flattest since 2012.
30Y Yields hit a 3.02% handle - 17 month lows; 10Y yields back under 2.30% - 16 month lows
The USDollar rallied for the 2nd day but ended the week -0.8% - the first losing week in 12 weeks and worst week in 6 months. USDJPY sold off the most in 14 months this week.
Gold +2.7 - best week in 6 months; Silver +2.9% - best week in 4 months
WTI Crude plunged 4.6% - worst week in 9 months; 2-week collapse 8.5% is biggest sicne June 2012.
* * *
But the fundamentals are still in tact?
* * *
Dow 16,576 12/31/13 close - Year-to-date, things are getting ugly fast..
Dow closed below its 200DMA
S&P closes at 200DMA
And S&P 500 futures kept free-falling after the cash close...
And off the post-FOMC highs...
On the week
VIX's 2nd biggest week in over 4 years...
VIX on the week...
and VIX on the day - with another fat finger...
Financial stocks are tumbling back down to credit...
Once again stocks tried to escape the bond reality (6 times today) but failed every time...
Treasuries rallied today ending the week notably lower in yield but steeper...
The USDollar rallied for the 2nd day but the 0.9% drop on the week is the worst in 6 months... This week's USDJPy drop was the biggest in 14 months
Oil slipped 4.25% but copper, gold, and silver all rose...
High yield credit spreads are at one-year highs... with IG credit up-in-quality trades continuing...
And stocks have a long way to fall in the short- and medium-term to catch down to credit reality
Charts: Bloomberg
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A little bit of chart looking is okay. support is real, because it's a human reaction. Human beings will be influenced by the price which is lower than they are used to; to what degree is difficult to say. The new normal in Germany; failure; is very important in my opinion; but that's all that is; an opinion. The EU is in big trouble; at least partly because of playing pretend and saying that everything was alright; now we know it isn't alright; this must make some difference. you saw the French anouncement, that "we have been living beyond our means", right? No one knows about Monday; we just have to wait and see; perhaps optimism will rise again. but the market should be traded as a bear market now.
the important thing about looking at charts is what do you do with the information. You don't want to sell things on Monday, just because it's monday, because they're cheap. Wait and see if they rally during the week; t hen you can sell t he same things at a higher price with much less risk.
Germany will face East.
... or eat fist.
Shit; tunafish sandwich in my lap. thanks. I suppose. very funny.
Ms. Burton; never try to explain market behaviours, you will only confuse yourself. I say this in all humility; I too, once tried to rationalize market behaviours, but I was losing money; my mentor stopped me from doing this; the market is irrational and unstable; only look at the daily price charts; and volume and open interest . No one that we will ever meet knows why the market does anything.
Jesus, just release more minutes from some random top-secret Central Banker Planning meeting and this mofo will skyrocket 4%.
Why would Jesus do this?
In God We Trust bitches. It's printed right on the fiat.
Because he was gay and is buying curtains for the living room. This answer makes as much sense as any.
Go ahead and down vote.
ROFL. uh. it hurts when I laugh, bitchez. why would Jesus do this; AAhhh-hhaaaaa-haa. You're nuts, you know that, don't you ?? ha, ha.
Turn down for what?
Major event to happen on october 16 2014
Remember, Apple told us 'special event'
On this day. Remember this.
I'm going to cash in some of those overpriced $ and buy some more silver rounds this w/e.
I hear silver keeps the Ebola zombies away. ;-)
Until I see confirmed closes under the 200 day avg. In all 3 of the major U.S. equity indexes, I'll figure Kevin Henry has it handled. I've been boondoggled too many times over the last 6-7 years.
I don’t care if Monday’s black
Tuesday, Wednesday, algo crap
Thursday ends right at VWAP
It’s Friday -- I’m in love
Monday, you can fall apart
Thursday I’ll just throw a dart
Tuesday -- you promiscuous tart
It’s Friday, I’m in love
By Thursday’s fading light, it’s such a gorgeous sight
to see futures puke in the middle of the night
You can never get enough, enough of this stuff
It’s Friday, I’m in L-O-V-E
I'm SRTY and my weekend plans are set. Waiting for the previews Sunday night.
Good man. Made ~10% in my trading account with TZA in just the past two days (but, like an idiiot, only traded the first 30 min. today). I never do overnight holds, and can't imagine the size of the cojones of those that do, but I wish you good luck as a fellow Russell trader. Hardest index to learn to trade, very quirky but, IMO, the most consistently rewarding. Godspeed.
Thank you. I even closed out many accounts the past few weeks to load up on SRTY.
I wanted to keep PSLV but with a bad economy the Silver may not be precious until after any crash...and can re-Silver then.
I'm keeping the CEF though...all IRAs and 401ks...so can't short normal...but only the inverse ETFs.
Lost 50% since 2007 but still getting ready.
This should work out...then get back to precious metals to keep the gains.
Here we go. Dance on a Volcano (Genesis).
https://www.youtube.com/watch?v=TBcnjx05a1s
Can’t say I’m not worried for you, given RUT sits right at “bungee” levels (no support below for miles), and I’ll bet as many short algos will want to hit these doomsday stops as long algos will be waiting just below to scream new weaker shorts higher. While the worst case ultimate IWM target may be the 200 weekly MA (~91), I have a feeling the buy machines will kick in just below the last pre-bungee weekly pivot (~103 on IWM) then torture new retail shorts for longer than expected, even if an ultimate crash comes. As they say, “be careful out there.”
...my can't miss home runs are WZZ BHG CDQQ and ZZZF. can't miss.
CEF is a keeper. Been the doghouse for many months so buying phys. at a discount. I think the NAV discount has gone as hihg (low) as 7%. No brainer and totally backed.
Feels like I should go out and celebrate. I've waited 6 years for this and now I get the NWO release of ebola as well. Mad Max and that heightened state of being that I've always dreampt of. Babe I'm on Fire.
I feel like I can just sob my heart out at what these bastards did to our country. I emigrated to the US 22 years ago and I do not recognize it. The American people are an inventive people, not these socialist nitwits. I strongly believe that guilt and voter fraud got this muzzie scum elected twice.
I don't think you are allowed to actually compliment the American people on ZH.
Not fashionable.
Not the cynical, sophisticated worldview.
SCOTUS Fraud definitely got dubya elected!
Otherwise we'd have had the Clinton, Gore, Obombya, Clinton gauntlet for 32 years. Same difference. Just shades of gray/darkness. TPTB behind it all, that's what it means to be well connected in politics.
I can hear Yellen starting the engines of the helicopters full of cash now...
Nope. I think they are pretty well at the end of this ability. I think Yellen has been hung out ,,,,
That's always been in the back of my mind, too: Bernanke bails out and Yellen becomes the scapegoat.
When we reached Mr. Bernanke at his villa in an undisclosed tax-haven he commented "I'm not sure what happened-everything was fine when I left office!"
+1
That's always been in the back of my mind, too: Bernanke bails out and Yellen becomes the scapegoat.
When we reached Mr. Bernanke at his villa in an undisclosed tax-haven he commented "I'm not sure what happened-everything was fine when I left office!"
+1
That's always been in the back of my mind, too: Bernanke bails out and Yellen becomes the scapegoat.
When we reached Mr. Bernanke at his villa in an undisclosed tax-haven he commented "I'm not sure what happened-everything was fine when I left office!"
AND +1
Cool. The rare but effective triple post.
Where's the FED? The FED! The FED! WHERE'S THE FED????!?!???!?!??
It's Fed bowling night in Minneapolis, Kocherlakota's turn to buy the ginger ales.
Has Janet gotten her Time cover yet for being our heroine, or has everyone figured out she's just dealin' heroin?
Keep going down. Punish the Wall St fascists.
Blame the 666 Satan Signal(s) on ZH yesterday??
Or maybe the PTB are commemorating Black Friday?
Images for black friday 1929
https://www.youtube.com/watch?v=RJpLMvgUXe8
10 minutes...PBS easy.
Ominous Rumblings...cooling economies...fiat finance and borrowings keeping it going and going...until.
As Summer turned to Fall.
Concerns in September at a permanently high plateu.
Oct 23, then Oct. 29 (after banker finance and funding pulled out).
If crash next week this could be a 'greater' depression.
Well, this is probably one of the last good yard sale weekends for the year. I will pray to the gods that I find more gold, silver...I have a feeling that this season may be my last chance to pick up gold jewelry for 50 cents or a dollar....
There are a lot of months between now and next Memorial Day (the kick-off to the sale season)and I really think this may be heading into something very unpleasant. In any case, I'm feeling pretty certain that by next spring, people will be back to 'loupeing' all their stuff again, instead of tossing it all in a big box with a "5 $ Takes All!" sign on it...
Damn.
LMAO. Anyone here doubt that come Tuesday we're to the moon Alice! You might want to hold off on any of that gold and silver nonsense...I mean, W T F People. Halloween's a comin...candy and costume sales will get eveyone excited here as we near the end of the month....we've got that going for us, and I have it on good report that Christmas Shopping 2014 is already humping along quite nicely . . . . Black Friday will be literally knock the socks off expectations of the talking fucktards on MSM and Fox Business. You've been warned....buy some stocks while you still have an opportunity....this thing is about to blow to the upside . . .look for Republicans to take it in the ass come November....that should clear the field for Obummer to run the ball the rest of the way to the end zone!
I'm going to dress up as an ebola victim for Halloween.
I'll just let ketchup ooze from my mouth when I answer the door, and watch the mothers grab their kids and run away.
I won't even have to buy any candy this year.
Look at the savings.
Unlike our leaders, the market understands ebola and what the economic impact will be. Airlines will be trash along with any other business that depends on getting lots of people in the door.
The drunks are staggering around looking for the QE punchbowl. It's gone.
the punchbowl is just hidden away so the chronics can't get at it yet.
This market is so easy to trade. just BTFD.
LOL. well, you have to admit, it worked well during its time.
Obola looses this time no matter. The csucker is out of the trojan horse insighting and race hustling in plain sight. He's an ugly mfugger too. Hope all you rich pessimists guess right in the casino before the last curtain call.
Time to let Quince Edward IV out of the can... For fuck sake we need moar liquidity. Waaaaaaaaaaaaaaaaaaaaaaaaaa!
For many of us, race hustling was over LONG before the landmark Simpson trial.
20 years later, the destructive, thieving, divisive bullshit is stronger than ever.
And no worries, he's still got a pen and phone sprinting to the endzone.
The question that must be on every ZH permabear's mind is how low will the Fed let it go before they intervene? They will try jawboning first, that was good for 275 points the other day. Then they may have to call up the BOJ or Goldman to make a few hundred billion dollar discrete EFT purchases for them. They know when the millions of investors lose faith in Fed and all head for the exits, it will be a bloodbath. Eveyone cannot sell at the same time without triggering a brutal sell-off and then a collapse. Millions have nothing else but stocks. Eighty-year olds, fully invested in stocks, confident the Fed will support the markets forever. Savings is a joke at 1/4% interest, so millions have nothing else. Fund managers claim to be "geniuses" riding the Fed manipulation higher and higher. Even with near-zero rates for decades, it will end ugly for sure, but when?
"millions of investors"... Very Funny!
Those "millions" are not Investors, they may be Traders,Speculators,Brokers,Bankers,Advisors,Central Bankers etc.
No way there are millions that still believe in "Investing" in the grand Illusion.
I expect an uglier contagion to Euro & Japan markets (both bond and equity). Positions in place to ride these down.
what technical damage! reminds me of the friday before Oct 19 1987.
The central bankers have been trying to stop this by throwing everyone elses' kitchen sink at it. They couldn't stop it and they did make it worse.
The inkjets will go fucking nuclear next week to undo this, you can bet on it.
VERY INTERESTING
Most of you assume this is a genuine sell-off. That the bears suddenly have the whip hand.
But couldn't this decline be engendered by the crooked cabal itself who recently bought puts, sold calls, and went short? And now they have temporarily stopped their persistent buying and caused the markets to go into a tail spin?
And when the DJIA declines to a pre-agreed number, they will take their profits, bank billions of dollars, and kite the market right to where it was before all this happened.
And then they will take the profits they made on this decline and push the Dow up to 19,000.
I can't even count how many times 've seen them do this.