Happy 27th Anniversary Black Monday

Tyler Durden's picture

"It could never happen again... right?"



And if you think this time is different - just take a look at the 'tricks' they used 27 years ago to stop the fall - A Fed statement and borken/halted exchanges...


Charts: Bloomberg and Yahoo

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Bonus Clip - as we noted previously,

"This is a market that has been seriously overvalued for some time," exclaims Paul Tudor Jones,"and what we are seeing today is the piercing of the bubble..." adding that "Wall Street was uniformly unprepared for this kind of a drop."

Of course Bill Griffeth asks should we buy this dip... Tudor Jones replies - so ironically -

"we should see massive Federal Reserve and Government intervention in the FX and debt markets to stem what has unquestionably been a panic."

But Tudor-Jones cautions:

"prudent investors should use any rally to scale back into short-term Treasuries."

The legendary trader goes on to explain he is trading fear as investors fear deflation and disinflation and warns

"every American needs to get their house in order, needs to be conservative in their investments, the next few years will be about capital preservation."

Wise words for record highs...

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ACP's picture

Funny, that graph actually looks like the last week, but of course, not quite to that magnitude.

Aknownymouse's picture

Funny. Is it me or did cnbc look a lot more interesting. They had an intelligent discussion one on one where the trader actually said his opinion without getting interrupted a million times by Bill Griffeth. Also there were not 6 or 8 boxes of stock pushers trying to talk their book and where you could not understand a word as they all shouted at the same time.. It was an actual interesting conversation. Maybe cnbc should watch those old tapes to understand what went wrong.

There was a promo intro saying the view from chicago at the end. I was so interested I actually wanted to hear that. This is where they would bring in Santelli now and then try desperately to shut him up. Why don't they just cancel him and get it over with.

Escrava Isaura's picture


Do you refer CNBC as information? How do you refer propaganda?


max2205's picture

Spy 220. ...10 x in 27 years....btfd

BKbroiler's picture

Funny. Is it me or did cnbc look a lot more interesting.


I was just thinking that.  And reporters had the guts to call traders maniacal and ask them if they were making money off the misery, nice bit of tension there.  

ZerOhead's picture

Happy 27th Anniversary Black Monday

Tyler... you're shitting me right? Have you been spending time with Christine Legarde again?

27 ?


Escrava Isaura's picture




No question here... Just leave it ending in 7... Or whatever the hell that means.

Sick's picture

2014...14/2=7,  who knows how the pshycopaths think.

Keyser's picture

We've already played this game, comparing the current charts with 1929... How many got their face ripped off on that one?

GetZeeGold's picture




If anything.....we killed the Yuppies....and I'm happy about it.




What we forgot....is nature abhors a vacuum.

rccalhoun's picture

1987 was the BTFD of all time........what are you touting ZH?   cant beat 'em, so join 'em?

ebworthen's picture

I would love for this Monday to be another Black Monday.

The house of cards is a lie, and needs to fall for good.

Is it wrong that I wish that?  I don't care, I wish it.

This time, hang the complicit Ponzi masters.

Hang 'em high.

Gromit's picture

Bubble hasn't been burst just tickled a little.

hibou-Owl's picture

If it helps, I use Elliot wave analysis for shorter term timing and find it quite good.
This last run down hasn't completed, the bounce yesterday counts wave four. Wave three impulsive (down) is larger than wave one, which means wave five likely to extend as three cant be the smallest.

So I'm waiting for four to complete (up) and will add to shorts on the break.

So in plain English bit of covering to go then another potentially large leg down.

new game's picture

only one bubble to watch-bonds, treasuries that is. endless waste of time cause it is just digits that have a digital carrying charge easily paid for at this point in tyme. when the tyme arrives that pomo is to pay the minimum interest payment, then it is tyme to head for da hills...

chunga's picture

I think it has a lot to do with misery loving company eb. There are a lot of people out there who have been seeing their standards of living go steadily down the tubes. Meanwhile, we're told the stock market is the bellwether of everything, and it does nothing but go up.

Throw in the fact that it's all fake (pure solid fraud) and I'm right with you. Crash baby.

RaceToTheBottom's picture

The FED thinking is if they can cause a 3-5% "crash" they can remove pressure and stave off the big one.  


trulz4lulz's picture

Aint no moutain high enough, aint no valley low enough!

dark_matter's picture

Three is a holy number. Three to the third is the holy of holies.

trulz4lulz's picture

33rd degree no doubt. Ahh 27.....

Implied Violins's picture

More like: 10/24/2014 = 1+2+4/2+1+4 = 7/7...and a second eclipse is involved. These fucks use numerology and astrology to plan their shit, even though that crap is worthless for anything else. I hope I'm wrong...

Escrava Isaura's picture

Implied Violins

 Because it reassures the masses there’s divine intervention. Total farce, but it works because I have friends in Washington, DC that believe it. Buy into. Bring it up in conversations.

Amazing how well this propaganda ‘nonsense’ works.


Antifaschistische's picture

exactly....is that the next lesson, that no matter how bad it gets, keep BTFD..that is what 87 taught us.   I do get the feeling, that someday, someway, that strategy may actually hurt someone...but

sun tzu's picture


1990 = 38,000

today = 15,000

Greenskeeper_Carl's picture

Santelli is kept there so that when the market goes up, they can make him look crazy, but when it inevitably crashes and people correctly blame the fed for creating this mess in the first place, they can claim some semblance of credibility by having a "semi-doomer" on there the whole time.

Buck Johnson's picture

We never learn do we.  Well this time we may learn and it's going to hurt.


tarsubil's picture

Just imagine how worse the shit show will be in another 10 years.

frankTHE COIN's picture

That was actually the FNN ( Financial News Network)
Bill Griffith, Ron Insana, Sue Herrara, Neil Cavuto, and John Bollinger.
When they merged to become CNBC there was overlap so John Bollinger had to leave. And John Murphy ( who wrote " Technical Analysis" stayed)
John Bollinger went on to develop the Bollinger Bands you see on Technical packages)

OldPhart's picture

"capital preservation"

Beans, Bullets, Bullion, Broads and, um...oh, yeah, Bacon!

SAT 800's picture

And un-prudent speculators should short said rally. Cause, it'll fail again. What's that expression? oh, yeah, "A dead cat bouinces"; something like that.

aVileRat's picture


As we saw with Goldman, CNX and Alcoa the market is not focused on earnings right now, unless its so horribly outside the realm of the "sell side" (like SLB or NFX) which requires market action.

"Nos Morituri Te Salutamus Esse".

Anyone else notice the WSJ writeup on the Shire deal falling apart on the 27th Anniv. of Black Monday was a dead ringer for their article printed on the Friday before the black Monday crash, when back then they also commented on the deal risk for other large M&A arb. players ?

If you are a retail trader, a good brushup this weekend on the use of flash market orders with controlled limit collars would be good reading vs. watching Netflix

If you are buyside, and your boss has not yet told you about the joys of 3am OSHIT fire drills, and you have not yet had one at your shop, Now would be a good time to brush up on the fail-to-buy of the Japanese today and the Ruble crisis, and today's current fail to cover in context to the last time a asian Central Bank had a minor crisis to allocate collateral.

If you are Fed ? Take the weekend off, go post on Reddit or something papers are not due until December anyways.

VIX term implies nothing bad will happen for the rest of the month, but it would really suck if Allergan is pulled or something big was fudging their Sapphire numbers or that slowdown in DRAM is due to something not being priced in, given everyone just ran into Healthcare & Dotcom stocks for "safety".


OldPhart's picture

After many experiments I can attest that a dead cat bounce is bullshit.

I tossed a dead cat...my own 23 year old cat who died of natural causes (ate something she shouldn't have) from my roof to the brick walkway ten feet below.  Now I launched about eight feet into the air, in forty attempts, and at no time did the pussy corpse bounce.  My results were essentially "Thud", "Thud, roll left/right", "Thud, roll forward/back", "Thud, slide through blood and gore and roll where-ever the corpse hit dirt", and "Thud.  Shit and guts pour out. (about thuds twenty five to forty)".

Forty attempts with one cat, and a lifetime with other pussies...and not once have I found a dead one to bounce.


just-my-opinion's picture

I saw the cat bounce....went from down over 400 less than 200 in a few seconds.....Then it BTFD on Friday.....This game needs too end or we are "Doomed"

Remember that ....standing around the copy room....we ran out of paper....we are "Doomed"

How long can we push the shit storm in to the future?

DarkLordofSadNews's picture

Time to polish those canned food eh!

Although ZH gets insider info better than anybodyelse

Doom and gloom is a bit overrated , there I said it!!

Redneck Hippy's picture

I remember 1987.  I lost about 25% in one day.

But it all came back by January 1988.  It was all a sort of automated response due to "portfolio insurance," the HFT of those days.

The robots pay no attention to fundamentals.  Humans have a big advantage relative to robots.

OldPhart's picture

I remember 1987, too.  I was too dirt poor to have anything in the market back then. But I lost about 75% of everything for the next thirty years.

Keyser's picture

I too was dirt poor back in the late 80's and had nothing... I'm happy to say that after all these years I still have most of it... 


studfinder's picture

All China would have to do is shut off exports to the US and it would be game over.  Can you imagine the Walmartians experiencing empty shelves? 

Keyser's picture

Considering that Walmart has driven all the mom & pop stores out of business, the backlash would be grave... 


Jack Sheet's picture

Just stay wary, alert, and wery, wery, nimble.

CASTBOUND's picture

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Bangalore Equity Trader's picture


All that free money sitting on the short side waiting to be had.

Short ESX4?

TeamDepends's picture

When Black Friday/Monday comes
I'll collect everything I'm owed
And by the time my friends find out
I'll be on the road
-Steely Dan
LISTEN to that.