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"Quad Witches, Bitches" - Stocks Crash On OpEx

Tyler Durden's picture




 

CNBC was awash with "Remain Calm" comments today as yesterday's carnage extended into today post-option-expiration misery.. "I would call this a rather stable sell-off" and stocks are "in a bit of a funk" were among them... but for those buying the well-sponsored rip post-Yellen, here's what you get:

Quad-Witch Bitches:. The last two days are the worst since Black Monday for stocks, and just as we warned a week ago, Yellen's confidence-inspiring rate-hike was undone by 'technicals' in the so-called market:

The irony will be if, regardless of what the Fed does, the subsequent move is driven not by the market's read through of monetary policy but by the "pin" in this massive $1.1 trillion option expiry, the biggest in many years, one which if recent market action is an indicator, suggests the stop loss strike level will be taken out in the process setting the "psychological" stage for market participants who will look at the drop in the market, and equate it with a vote of no confidence in what the Fed is doing, potentially forcing the Fed to backtrack in less than 2 days!

 

Whether this happens remains to be seen, and we are confident the Fed's "arm's length" market-moving JV partner, Citadel, is currently scrambling to prevent any imminent selloff. However, considering Kolanovic' track record of hinting at key risk inflection risk, it is quite likely that whatever the ultimate closing price on December 16 and, more importantly, December 18, volatility may very soon have an "August 24" type event.

The "quad's" outcome - bloodbath. 

 

With S&P 500 Futures breaking the 2,000 level after-hours...

 

Post-Yellen, bonds are outperforming notably.

 

Post-Fed... not exactly confidence-inspring...

 

The Dow is down 700 points from post-Yellen exuberance... Nasdaq broke 5,000; Dow nears 17,000; and S&P 2,000 was defended with valor...

 

Leaving everything Red for the week...

 

Trannies are down 18% YoY... the fastest accelerating drop since Lehman...

 

FANGs all red post-Fed...

 

Stocks caught down to credit markets - as credit crashes...

 

Equities still have a long way to go...

 

Treasury yields (most notably the longer-end) ripped lower after the Fed... but remain higher on the week...

 

With a dramatic "policy error" style flattening of the yield curve...

 

The USDollar rose over 1% on the week but the last 24 hours has seen some fading as carry trades were unwound en masse, driving JPY higher...

 

Commodities were very mixed this week. Silver, gold, and copper surged today

 

Silver's best day in 11 weeks...

 

Crude collapsed to fresh cycle lows...

 

Charts: Bloomberg

 

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Fri, 12/18/2015 - 17:08 | 6940716 Soul Glow
Soul Glow's picture

Double, double, toil and trouble....

Fri, 12/18/2015 - 17:09 | 6940730 bania
bania's picture

at least the s+p finished above 2000 wasnt that supposed to be important?

Fri, 12/18/2015 - 17:11 | 6940744 Pool Shark
Pool Shark's picture

 

 

"I felt a great disturbance in the force, as if millions of hedge funds cried out in terror and were suddenly silenced."

Fri, 12/18/2015 - 17:16 | 6940769 JungleCat
JungleCat's picture

"Not off the session lows?"

Again ?!?

Fri, 12/18/2015 - 17:17 | 6940775 localsavage
localsavage's picture

Well....It looks like those kids aren't gonna get their GI Joe with the Kng Fu grip Mortimer.

Fri, 12/18/2015 - 17:19 | 6940781 ThaBigPerm
ThaBigPerm's picture

"since Lehman" spotted ... take a drink, gents

Fri, 12/18/2015 - 17:45 | 6940864 Captain Debtcrash
Captain Debtcrash's picture

I've been watching CNBC, all they have talked about is ISIS and terrorism, and how today's rout is setting up a rally for next week.  Lol, got to love it. 

Fri, 12/18/2015 - 17:51 | 6940889 Never One Roach
Never One Roach's picture
Another Houston energy company slashes its 2016 budget

 

http://www.bizjournals.com/houston/blog/drilling-down/2015/12/another-ho...

 

 

" No soup for you! "

Fri, 12/18/2015 - 17:58 | 6940912 El Vaquero
El Vaquero's picture

Goddamnit Tyler.  It's not Bitches, it's BITCHEZ, BITCHEZ!

Fri, 12/18/2015 - 18:40 | 6941049 NotApplicable
NotApplicable's picture

Apparently, nothing is sacred...

Fri, 12/18/2015 - 19:06 | 6941135 highandwired
highandwired's picture

Tyler, why didn't you cover Bitcoin?

Fri, 12/18/2015 - 19:37 | 6941233 nmewn
nmewn's picture

What was the volume? ;-)

Fri, 12/18/2015 - 20:18 | 6941350 Automatic Choke
Automatic Choke's picture

twitchy bitchy day indeed, i had to sell my iron lung to meet the margin calls.

Fri, 12/18/2015 - 20:50 | 6941433 Save_America1st
Save_America1st's picture

quad-witching chart porn, bitchez!

don't ya think somebody.....any-fucking-body at all...warned 'ol Fellen about the trap she was about to walk into????  Even Peter Schiff, who really never believed she'd be so stupid as to try this now at this time said last week that if she did raise the rate this tiny fraction of a percentage it would cause major chaos.  Dozens of others have been saying this for months, if not years.  The Fed is fucked and jammed so hard in a corner they have to shit out of their mouths! 

I guess one speculation that I can kind of buy into for them doing this is that it had to be done even though they knew 100% it would cause big problems.  They were willing to do it and take the chance if only for the next few months to try and slowly blow off some steam from these bubbled up markets. 

Then...if after a month or two it seems to reeeeeaaaaally be getting outta hand big-time then they'll come up with some stupid story about dropping the rate back down to .25 or even zero...they'll blame it on China or some stupid fucking bullshit. 

And I think if they do that then at the same time they're going to come up with an even more lame-O story about having to institute more QE of some kind.  Maybe not a full-blown massive Trillion fiat QE, but maybe a smaller one to see if they can just keep nudging things along as far as possible up and down within certain tollerance levels of high and low while trying to manage the perception via the media and the gov-scum.

My only disappointment today was that silver caught a wave and jumped up along with gold.  Fuck!!!

Was hoping for another nice monkey-hammer down closer towards 13 even!  That woulda been sweeeeeeeeeeeeeeeeeeeeeeeet, right?!!!  Oh well, that's okay...I'm still enjoying the "game" w/ PM's.  Anything under 30/oz in phyzz silver will still always be the steal of the century.  Hell, even anything under 50/oz at some point in the next few years to come is going to look like the bargain of a fucking lifetime. 

But I'd still like to catch that falling knife just once while we're here near these crazy-ass lows....13 would be nice...maybe even 12.85.  The interesting thing at this point around these valuations is the aspect of the supply and premiums.  I've been fairly surprised we've had ample supply and low premiums through all this for over a year pretty much. 

No matter what....keep on stackin'.  These prices are a fucking gift.  Silver at this price range right now in terms of 1980 dollars adjusted for inflation and for the total amount of dollars now in circulation comes to around 1.50 a fucking ounce!!!  Silver should be around 600 bucks an ounce today if not for all this leveraged paper bullshit on the Crimex.

It's insane, but we have to take what we can get, and this is the gift of a lifetime from those fucking crooks.  So I hope nobody is bitching about it.  Anyone who bought large amounts at higher levels in the 30's or 40's a few years ago....don't fucking worry about it. 

Just keep stacking more and more at these low levels so that you can cheaply keep on building your stack while also lowering your cost per ounce average.  In the long run...as long as we still have supply and decent enough low premiums, we'll all win big-time in the end. 

Don't get discouraged, and no matter what....NEVER SELL YOUR PHYZZ!!!  Just keep buying on a steady basis.  But NEVER sell the stuff.  You only lose if you sell, and that's what these scumbags are counting on.  So don't give in to anything.  Stay positive and know you're doing the right thing and that you're on the right track to saving your ass after the SHTF. 

 

Fri, 12/18/2015 - 21:19 | 6941510 Save_America1st
Save_America1st's picture

excellent interview on SGTReport.com w/ Steve St. Angelo of SRSRoccoReport.com regarding the silver prices:

http://sgtreport.com/2015/12/silver-is-now-a-buck-in-1980-dollars-srs-ro...

And Steve's written analysis on the same subject...always excellent data and analysis as usual:

http://www.tfmetalsreport.com/blog/7344/guest-post-something-broke-us-si...

 

 

Sat, 12/19/2015 - 04:36 | 6942330 jeff montanye
jeff montanye's picture

i note that global international reserves appear to have peaked in august of 2014, going down for the longest time since ww2 or somesuch.  there was an article about this at jesse's bistro.  looking for an explanation, i came across this and include it in part because of all the guff the communists catch on this site.  imo there are few better critics of capitalism than marxists.  however, again imo, their solutions are inferior to their critique.

http://mrzine.monthlyreview.org/2015/patnaik090615.html

Fri, 12/18/2015 - 21:18 | 6941524 Save_America1st
Save_America1st's picture

.

 

Sat, 12/19/2015 - 02:53 | 6942258 allgoodmen
allgoodmen's picture

The purpose of the hike simply stated, is to cause massive chaos, thus requiring an emergency .5 cut.

Voila, NIRP!

Fri, 12/18/2015 - 17:19 | 6940783 TeamDepends
TeamDepends's picture

Oompa loompa doompa dee dee
The muppets are restless
Coming for thee!

Fri, 12/18/2015 - 17:29 | 6940804 ZerOhead
ZerOhead's picture

“If money isn’t loosened up, this sucker could go down.”                          ~ George Bush 2008

 

It's like deja vu all over again...

Fri, 12/18/2015 - 18:04 | 6940936 walküre
walküre's picture

so many Deja Vues... hard to keep track

Do I finally buy this dip or did I miss it again?

Man, I haven't lost any money this year. Feeling kinda bummed and left out.

Fri, 12/18/2015 - 18:17 | 6940977 Took Red Pill
Took Red Pill's picture

and Bush had that come up near the end of his term. What will happen at the end of Obama's?

Fri, 12/18/2015 - 18:41 | 6941052 Arnold
Arnold's picture

Some how I will find the strength to live with the loss.

 

https://www.grieflink.com/living-loss-one-day-time-0

Fri, 12/18/2015 - 17:27 | 6940817 DirkDiggler11
DirkDiggler11's picture

The traders won't get their blow-up dolls with life-like hair and a vibrating anus either...

Fri, 12/18/2015 - 17:43 | 6940860 ParkAveFlasher
ParkAveFlasher's picture

"Vibrating anus" - great metaphor for Yellen's decrees!

Fri, 12/18/2015 - 18:01 | 6940920 FreeNewEnergy
FreeNewEnergy's picture

An even better metaphor for Yellen's mouth.

Fri, 12/18/2015 - 18:08 | 6940948 e_goldstein
e_goldstein's picture

Especially when she gets all strokey.

Fri, 12/18/2015 - 18:17 | 6940978 underman
underman's picture

You mean, "Mortay!".  And "Randy, like Randy Jackson, from the Jackson 5!"

 

 

Fri, 12/18/2015 - 20:35 | 6941405 Proctologist
Proctologist's picture

More like GI Joe with the Janet Yellen death grip.....

Made in China of course.

Sun, 12/20/2015 - 01:45 | 6945157 risk.averse
risk.averse's picture

Palpatine (aka Darth Yellen-sidious): "Master Yoda, do you think it will come to war?"

Yoda: "the Fed-dark side clouds everything. Impossible to see the future is"

[Attack of Fed Chair-clones]

Fri, 12/18/2015 - 17:14 | 6940761 Soul Glow
Soul Glow's picture

"There are $1.1 trillion of S&P 500 options expiring on Friday morning. $670Bn of these are puts, of which $215Bn are struck relatively close below the market level, between 1900 and 2050."

So only a third of those puts finished out of the money.  Not bad.  You know where the problem lies though?  Is that those puts expired.  They were a floor under the market.  Now that floor is gone, and who is going to put another under there?  

The Bernanke put is losing $100B a day due to the reverse repo policy.  The BoJ can only jawbone.  And Draghi knows he is out of ammo.  Looks to be a cold Christmas.

Fri, 12/18/2015 - 17:20 | 6940786 curbjob
curbjob's picture

"Looks to be a cold Christmas."

 

Curl up next to a fire sale. 

Shouldn't be hard to find one. 

Fri, 12/18/2015 - 18:17 | 6940982 Bay of Pigs
Bay of Pigs's picture

Im dreaming of a Black Monday, just like ones we used to know...

Fri, 12/18/2015 - 19:05 | 6941133 RafterManFMJ
RafterManFMJ's picture

Set my buy orders today, Microsoft at 8, IBM at 10, no bid on any banks...

Fri, 12/18/2015 - 19:04 | 6941116 brada1013567
brada1013567's picture

S&P 500 options price on the opening set which was 2029.72 so your thought is not quite correct.

Sat, 12/19/2015 - 08:26 | 6942508 DavidC
DavidC's picture

bania,
Spot on. And the NASDAQ is still around 5,000. The Dow is the only one (so far) to have taken a bigger hit but it's still above 17,000.

We're still nowhere near the lows of late September or August (yet).

DavidC

Fri, 12/18/2015 - 17:24 | 6940800 slaughterer
slaughterer's picture

Yet another market crash before a Christmas shopping weekend.  Weekend sales are going to be very bad.  

Fri, 12/18/2015 - 18:02 | 6940927 FreeNewEnergy
FreeNewEnergy's picture

Blame it on the weather. Works every time. Wait, what?

Fri, 12/18/2015 - 18:58 | 6941109 franzpick
franzpick's picture

I'll bet people buy it - then return it.

Fri, 12/18/2015 - 18:08 | 6940946 Tyrone Shoelaces
Tyrone Shoelaces's picture

Only -1.78%?

Lamest Black Friday™ EVAH!

 

Fri, 12/18/2015 - 19:56 | 6941278 glenlloyd
glenlloyd's picture

Regardless of what caused the rout it'll be perceived as a policy error.

As someone else mentions, the S&P maintained it's 2000 floor today but now that everything has expired there's no more floor. This could mean the selling intensifies unless the PPT et al (aka Citadel) steps in at the beginning of next week.

The problem is that a liquidation is always selling what's liquid and not trying to unload the illiquid (since there's no bid) which means that traders, HF etc sell off the easiest first...

 

And YAY for the barfing clown!!!

Fri, 12/18/2015 - 21:24 | 6941542 ChargingHandle
ChargingHandle's picture

EVERYTHING IS AWESOME

Fri, 12/18/2015 - 17:07 | 6940720 Big Beta Bill
Big Beta Bill's picture

Gold says "across this line YOU DO NOT CROSS".  

Fri, 12/18/2015 - 18:15 | 6940970 knukles
knukles's picture

Hope Gold's line is more effective that Barry's Red ones.

Fri, 12/18/2015 - 17:08 | 6940724 ebworthen
ebworthen's picture

The recovery is here!  C'mon Janet, let's get it up to 5%, then we'll be in orbit!

Fri, 12/18/2015 - 17:13 | 6940754 divingengineer
divingengineer's picture

You think small.

15% and we'll all be 'investors' then. 

Fri, 12/18/2015 - 17:22 | 6940793 TeamDepends
TeamDepends's picture

(gulp) Accredited investors?

Fri, 12/18/2015 - 17:08 | 6940727 Kaiser Sousa
Kaiser Sousa's picture

Cocksuckers tried as hard as they could to pump it off that 2% loss mark right at the lows of the day goin into the last hour of trading as usual…but it didn’t work now did it ????
and lets not even talk about the walking down of the phony Gold and Silver paper prices YET AGAIN as they once again did what the canaries in the cold mines r supposed to….
DEATH TO THE MONEYCHANGERS….

and keep the physical Gold and Silver bargains coming mother fuckers…….

Fri, 12/18/2015 - 17:19 | 6940782 rbianco3
rbianco3's picture

Isn't gold supposed to go down when interest rates go up? 

I'm not sure anyway, picked up 10oz of Canadian quad-9 phizz yesterday for 1078 just to play it safe thinking I might get some cheaper but maybe not.

Fri, 12/18/2015 - 17:49 | 6940859 Soul Glow
Soul Glow's picture

The Fed started raising rates in 1960 and stopped in 1981.  During that time gold went from $35/oz to $800.  The rise was so strong the Fed had to leave the gold standard.  

Sounds like it does fine to me.

Fri, 12/18/2015 - 18:11 | 6940954 walküre
walküre's picture

Considering how inflated RE values are in most cities.. I'm thinking gold has a lot of upside left once the bubble bursts.

One oz should buy a house on a city lot. Period. We will get back there eventually.

Fri, 12/18/2015 - 18:51 | 6941087 MsCreant
MsCreant's picture

Go to Detroit. You might could buy 1,000.

Fri, 12/18/2015 - 18:27 | 6941010 Kaiser Sousa
Kaiser Sousa's picture

"Most pundits on Wall Street are nearly universal in seeing the rate increase as negative for gold. Especially vocal in this regard has been Goldman Sachs. One headline this week, screamed ‘Gold sags as higher U.S. rates are ‘very negative’ for bullion’. However, the consensus is likely once again wrong and it is important to examine the widely held belief that rising rates are bad for gold, by looking at the data and the historical record.


Source: New York Federal Reserve for Fed Funds Rate, LBMA.org.uk for Gold (PM fix)"

http://www.goldcore.com/us/gold-blog/5-key-charts-show-rising-interest-r...


Fri, 12/18/2015 - 20:10 | 6941324 g'kar
g'kar's picture

‘Gold sags as higher U.S. rates are ‘very negative’ for bullion’

 

you just hit on something: Goldman Sags

Fri, 12/18/2015 - 17:09 | 6940734 Amateur Society
Amateur Society's picture

Just biding my time until the next market recap with all deer in headlights thumbnails like on Aug 24

Fri, 12/18/2015 - 17:09 | 6940737 thismarketisrigged
thismarketisrigged's picture

CRAMER SAID EVERYTHING WAS AWESOME A FEW DAYS AGO SO JUST LISTEN TO HIM. 

 

RECOVERY BITCHEZ!!!!

Fri, 12/18/2015 - 18:02 | 6940918 booboo
booboo's picture

um....no thanks, Cramers show is a cross between Howdy Doody Time and The Gong Show

https://search.yahoo.com/yhs/search?p=youtube+howdy+doody+show&ei=UTF-8&...

 

Fri, 12/18/2015 - 18:17 | 6940979 knukles
knukles's picture

Howdy Doody and Cramer are for the Chillen'

Fri, 12/18/2015 - 17:10 | 6940739 Mark Mywords
Mark Mywords's picture

More to come next week. The selling has only begun.

S&P 1800 by year's end.

Fri, 12/18/2015 - 17:30 | 6940830 DirkDiggler11
DirkDiggler11's picture

S&P at 1800 by years end Marky Mark and the losin money fun bunch... You are an optimist sir !

Fri, 12/18/2015 - 17:49 | 6940876 Phat Stax
Phat Stax's picture

If the tide turns and shorts cover, then perhaps not.

Fri, 12/18/2015 - 19:33 | 6941215 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

QE and ZIRP at the next FOMC meeting, if not before (in emergency).

Fri, 12/18/2015 - 17:12 | 6940749 Peak Finance
Peak Finance's picture

If the 500 Billion of puts talked about expired worthless at close,

then the Fed still won the day

sad really

Fri, 12/18/2015 - 18:04 | 6940938 buzzsaw99
buzzsaw99's picture

max pain on the spy was at 207 you knew it wouldn't take the big plunge

Fri, 12/18/2015 - 17:14 | 6940752 Temporalist
Temporalist's picture

Here is something more seasonal and positive for the holidays:

Student Debt May Be the Next Crisis Facing Elderly Americans

An unemployed 65-year-old litigant is among millions of seniors still paying off tuition.

 

"The total outstanding education loans held by people 65 and older, including debt that financed their own schooling and their children’s, grew to $18.2 billion in 2013, the most recent year available from the U.S. Government Accountability Office (GAO), from $2.8 billion in 2005. That’s twice as fast as the overall growth in student debt. The number of borrowers age 60 and up has increased to 2.2 million, from 700,000 in 2005, according to the Federal Reserve Bank of New York.

Twenty-seven percent of education loans held by people age 65-74 were in default in 2013, meaning they hadn’t made a payment in 270 days or more. More than half of education loans held by people 75 and older were in default. And the government can garnish wages or suspend tax refunds for anyone who fails to pay their student loans, but it has an extra tool when it comes to senior citizens: taking money out of their Social Security payments. In 2013, 155,000 seniors lost part of their retirement benefit to repay education debt, up from 31,000 in 2002, according to the GAO. “There’s no statute of limitations, so these loans go with you to your death,” says John Rao, a lawyer with the National Consumer Law Center, a consumer rights nonprofit. “That makes it different for someone who is elderly who might think at a certain point in their life they are immune from collections.”"

 

http://www.bloomberg.com/news/articles/2015-12-18/student-debt-may-be-th...

Fri, 12/18/2015 - 17:42 | 6940856 e_goldstein
e_goldstein's picture

<--Pay student loans that got them nowhere.

<--Splurge on cans of Alpo for Christmas.

Fri, 12/18/2015 - 17:57 | 6940905 Never One Roach
Never One Roach's picture

Yes, take that money [$96,500] out of grampa's $65/week SS payments.

 

Ha ha ha ha ha!

 

 

Fri, 12/18/2015 - 18:06 | 6940941 Temporalist
Temporalist's picture

sick isn't it?

Fri, 12/18/2015 - 19:13 | 6941149 RafterManFMJ
RafterManFMJ's picture

...education loans held by people 75 and older were in default...

LOL, well, I'm off to tell Grandma she'd do well to forgo that Pharmacy degree she's been itching to start since 1960...

Fri, 12/18/2015 - 18:16 | 6940973 Somewhat Evolve...
Somewhat Evolved Monkey's picture

I'm confused by the title of this post.

 

It's like a mix between a poker reference and Halloween, but it's a week from Christmas.

 

Anyway, on the flip side I was reading an article about professors complaining that students expected an ROI on their tens of thousands of dollars.

The education business is going to crash just like all of these other schemes running on nothing but hot air.

 

I'd be in favor of cutting off education loans at 50. Sorry, but after the half-century mark, your time to reinvent yourself with a loan to go to a for profit cooking school, has passed!

Fri, 12/18/2015 - 18:34 | 6941029 Peak Finance
Peak Finance's picture

This:

I'm confused by the title of this post.

 It's like a mix between a poker reference and Halloween, but it's a week from Christmas.

 

It's a traders term:

 

http://www.cnbc.com/id/45617442

 

Fri, 12/18/2015 - 19:21 | 6941177 walküre
walküre's picture

You're being age-ist! I will sue your flobby ass.

Sat, 12/19/2015 - 08:28 | 6942509 FredFlintstone
FredFlintstone's picture

or 30 years of age for a "government" backed/subsidized loan. Or eliminate them all together.

Sat, 12/19/2015 - 13:49 | 6943195 Agstacker
Agstacker's picture

I read the article, he took out loans for all of his kids to attend college, all of them graduated and are employed but now he wants it discharged.  What a joke.

Fri, 12/18/2015 - 17:43 | 6940753 Dr. Engali
Dr. Engali's picture

Cracks me up, Zero is on teevee telling us how great things are at the same time the stawk market is cratering just in time for Christmas. Ho, ho, ho everybody gets coal bitchez!

Fri, 12/18/2015 - 18:31 | 6941017 Bay of Pigs
Bay of Pigs's picture

#DoomChubsMatter

Fri, 12/18/2015 - 19:02 | 6941126 Brooks_Orpington
Brooks_Orpington's picture

Can't get coal.  COP21 would never stand for the carbon footprint.

Fri, 12/18/2015 - 17:13 | 6940755 Ghost of Porky
Ghost of Porky's picture

Calm down, everybody. Charles Payne will guide us through this. 

Fri, 12/18/2015 - 17:17 | 6940777 Squid Viscous
Squid Viscous's picture

the same guy that said Merrill Lynch at $75 was a bargain?

Fri, 12/18/2015 - 17:25 | 6940810 vq1
vq1's picture

had to look him up. Hes looks jolly

Fri, 12/18/2015 - 17:13 | 6940757 agNau
agNau's picture

More like the slip on a banana(republic)peel at the top of a very long set of steps.

Fri, 12/18/2015 - 17:17 | 6940774 stant
stant's picture

Steve Forbes says dont panic because its to late, should have panicked when vlad boys flew into syria. Confidence and all that

Fri, 12/18/2015 - 17:17 | 6940776 ptoemmes
ptoemmes's picture

I dreamin' of a rate rollback Christmas, just like the ones we used to have.

Did we ever have one...oh well, there's always a first time.

Fri, 12/18/2015 - 18:01 | 6940916 Never One Roach
Never One Roach's picture

Auto loan rates are surging. Gonna be harda to buy one of those purple Escalades these days.

 

Those ARMs are reconfiguring also.

 

Lots of pain ahead for those folks. And don't forget all those Landlords who will have a great time trying to pass the increased prop taxes, insurance and mortgage costs onto the already bankrupt tenant.

Fri, 12/18/2015 - 18:08 | 6940949 walküre
walküre's picture

Why are you bashing purple people driving brown SUVs?

Fri, 12/18/2015 - 18:23 | 6940995 11b40
11b40's picture

What do you mean by surging?  It was only a quarter point increase.  I can get a 2.49%, 48 month Auto loan based on today's rate from B,B&T & the dealers seem to have plenty of even cheaper money.

Fri, 12/18/2015 - 21:50 | 6941602 Al Tinfoil
Al Tinfoil's picture

Section 8 will be extended to bail out the landlords.  Trust me.

 

Go long on auto repossessors and bailiffs.

Fri, 12/18/2015 - 17:18 | 6940778 One And Only
One And Only's picture
"Quad Witches, Bitches"

Where is the report offensive comments button? This is sexist and misogynistic beyond reproach. I'm calling Loretta Lynch for civil rights abuse. 

Fri, 12/18/2015 - 17:18 | 6940779 IridiumRebel
IridiumRebel's picture

Bitchez ain't shit but hoes and tricks, lick on deez nuts and suck the dicks....

Fri, 12/18/2015 - 17:25 | 6940808 CHoward
CHoward's picture

CNBC - LOL - bobble heads talking in the foreground when you can clearly see all kinds of shit blowing up behind them!!!  Go Bagdad Bob!!!

 

 

Fri, 12/18/2015 - 17:31 | 6940826 wizteknet
wizteknet's picture

Well we lost close to 1000 this week, another 1000 more guess time for the facts of worrying! Especially for fund managers, no year end bonus for you neither. lol

Fri, 12/18/2015 - 17:31 | 6940832 Boing_Snap
Boing_Snap's picture

The deflationary collapse is well under way, the only thing you need to know is money gets stronger in a deflation, all other things lose purchasing power. Stocks, bonds, commodities, real estate, and currencies.

Gold and silver are money, always have been, always will, the paper casino is being crushed. First they will run to bonds, then they will figure out that this is the last bubble, which was just recently been pricked. Once that realization strikes home physical PMs will be sought and prices will begin to rise. Even with the drop in price in $US terms, gold has gained in purchasing power for real items, as you can purchase more things with it over the last 4 years. Now it will begin to rise in $US terms as well.

How far you ask?, the theory is that Gold will rise and the Dow will fall till you can purchase the Dow with an ounce of gold. Some say the market has been so severally distorted that it may even go to half an ounce.

Waiting for parity, Cheers,

Fri, 12/18/2015 - 17:40 | 6940849 zibrus
zibrus's picture

If even a little bit of capital flees into gold, silver, and bitcoin, holders will be very happy.

 

Check out this chart I saw over at marketwatch:

http://www.marketwatch.com/story/this-is-how-much-money-exists-in-the-en...

http://ei.marketwatch.com//Multimedia/2015/12/18/Photos/NS/MW-EB647_worl...

 

Fri, 12/18/2015 - 18:11 | 6940953 Temporalist
Temporalist's picture

I know there are few bitcoin fans here but it has breached $460

Fri, 12/18/2015 - 18:19 | 6940967 zibrus
zibrus's picture

The link I posted is a great visual for why precious metals (historically money) and bitcoin (new money experiment using technology) could go stratospheric if even tiny amounts of capital flee into them. Most on ZH have ran the numbers, but never less, the graphic is quite an impressive way to look at the situation. The graphic includes gold, silver, and bitcoin, which is why I listed all 3.

 

P.S. ZH'ers comments are orders of magnitudes better than MW'ers comments.

Fri, 12/18/2015 - 18:26 | 6941008 Boing_Snap
Boing_Snap's picture

I like bitCoin, as a currency it stands head and shoulders over the bank created debt instruments. BitCoin is however a currency and it still is very vunerable to government interference and manipulation. Anything man-made can be undone by man.

The gold market will be changing if these new physical near 24/7 markets are enacted, its been quite some time getting them going, and many times now I've heard that they will be on line. I'm Missouri on this, but if they do come on line it will be a game changer for the London and Chicago manipulators.

http://kingworldnews.com/andrew-maguire-absolutely-stunning-developments...

 

 

Fri, 12/18/2015 - 18:39 | 6941031 zibrus
zibrus's picture

Agreed. I am about 60% silver 5% gold [30%phyzz and 70% pslv], and 25% bitcoin and 10% tech/robotics stawks.... (At least before the boating accidents)

 

So... It's what I call my anti-hegemony diversified investment portfolio.    

 

Edit: Yes preppers I have lead and lead delivery devices as well. And some food, water, petfood.

Fri, 12/18/2015 - 19:13 | 6941157 wizteknet
wizteknet's picture

Prostitute's are taking bitcoin now, lol!

Fri, 12/18/2015 - 19:23 | 6941184 walküre
walküre's picture

Of course they do now that bankers are promoting it.

Fri, 12/18/2015 - 21:14 | 6941508 Baby Eating Dingo22
Baby Eating Dingo22's picture

Unless that chart updates every 1/2 second, it's obselete

 

Fri, 12/18/2015 - 21:39 | 6941562 scrappy
scrappy's picture

Your comment is very good but only partially right.

The type of environment that is unfolding is not so simple.

That is low trade - supply chain problems, loss of trust, and the demand that gets killed in the deflation.

While PMs have "at times" have been the way to go, you assume much.

What is "money" for? To trade and get goods that are hard to produce yourself.

You also asssume people will value your PMs over goods. Perhaps silver as it has medical uses.

Long food, water, resiliance, spititual strength, and common sense.

 

Fri, 12/18/2015 - 17:39 | 6940848 joego1
joego1's picture

 I here there is going to be 1999 deer standing in the road Sunday night. Rudolf told me.

Fri, 12/18/2015 - 17:52 | 6940891 Bastiat
Bastiat's picture

It looks like much was spent to hold the market above 2K.  If so, then standby for big offers and weak bids on Monday.

Fri, 12/18/2015 - 19:23 | 6941167 wizteknet
wizteknet's picture

Next week we bring u xmas presents! Maybe it was all planned who knows... Sheet mine as well make it up as we goooooooooo down the toilet... Need a original tidy bowl man link... Don't have the patients to look for it.

best I could find, not as good as the original...

https://www.youtube.com/watch?v=6qoqE6WmNz4

Miss the one where u flush him & he echos as he goes down the toilet...

Fri, 12/18/2015 - 17:54 | 6940900 opaopaopa
opaopaopa's picture

I never understood what this song was about. 

Now it's clear - it's about Janet's policies.

 

https://www.youtube.com/watch?v=rv2MHatAXdk

 

Fri, 12/18/2015 - 19:18 | 6941169 wizteknet
wizteknet's picture

Classic like it

Fri, 12/18/2015 - 19:44 | 6941266 logicalman
logicalman's picture

Parliament!

I have The Clones of Dr. Funkenstein on vinyl still!

 

Fri, 12/18/2015 - 21:17 | 6941518 Analog
Analog's picture

Parliament!

OMG!!  Just cruizin' thru looking for intelligent comments ... Dr. Funkenstein!!!  Whoo hoo!!  I first heard that on vinyl, and now have it on CD (too bad the recording quality sucks ... )

They say the bigger the headache the bigger the pill baby

Well they call me the big pill

Dr. Funkenstein here ...

We gonna funk with your mind tonight ...

 

Stocks crash?  People really care about that rigged shit?!?!

https://www.youtube.com/watch?v=-ga5xtTX_8E

Thx logicalman  :-)

xoxo

Ana

Fri, 12/18/2015 - 17:57 | 6940908 Armed Resistance
Armed Resistance's picture

This is all going exactly as planned.  You simply cannot raise rates against the headwinds today without the INTENT OF CRASHING THE SYSTEM. I still contend this is by design to ultimately destroy the dollar and usher in more power, more control and a pre-planned one-world currency.  In other words, you ain't seen nothin' yet!

Fri, 12/18/2015 - 18:22 | 6940993 zibrus
zibrus's picture

All by design. Crash the 'evil' western money system. Flush everything down the toilet. Form a NWO ver 2.0 currency SDR backed by commodities and gold (think Russia & China), and buy up everything for fractions of pennies with the new gold backed currency.

 

Of course the real goal is total global power domination... so this is just the money part of that story.

Fri, 12/18/2015 - 19:41 | 6941254 wizteknet
wizteknet's picture

russia & china controlling currencies don't think so bub...  ww3 before that happens

Fri, 12/18/2015 - 19:25 | 6941191 walküre
walküre's picture

yes, it's intent is to cleanse and purge the system

BUT the Dollar will stand and rise even higher

Americans can soon afford to spend a week in Italy on their American min. wages!

Fri, 12/18/2015 - 17:58 | 6940913 herkomilchen
herkomilchen's picture

I get the market maker defense of 2,000 to protect against exactly the option-driven stop-loss plunge scenario ZH described.

However, if stocks go up on Monday, then I think the writing is on the wall.  ZH should own up to blowing hot air with not just this delayed-impact scenario but the whole rate-hike-apocalypse story.

Throw in the towel on the incessant stream of collapse-any-day-now articles that frankly just jerk good people around and lead them to lose money on bearish bets.

Fri, 12/18/2015 - 18:09 | 6940930 Soul Glow
Soul Glow's picture

You think if stocks go up on Monday, then ZH should stop giving the news, the news no mainstream source does?  You think we should bow down to the PhDs in their Ivory Towers and march to their drums? 

Maybe we should all go long the market then?  Give our dollars to Janet?  Stop buying physical?  That's what you think.

Fri, 12/18/2015 - 18:25 | 6940966 herkomilchen
herkomilchen's picture

I prefer not to lose money in the market (or to inflation via sidelining).

It's helpful to be aware how thoroughly markets and the money supply are corrupted.  It's another thing to figure out the positions that will prevail in the current markets.  ZH leads its readers to confuse the two.

I don't know how you extrapolate that I want ZH to stop giving real news and analysis, or I want to kowtow to Keynesians, or blindly buy FANG stocks, or diss gold, or strangle puppies.  I don't want any of that.  The choice between the current ZH approach and that approach is not binary.

Fri, 12/18/2015 - 18:26 | 6941002 zibrus
zibrus's picture

MSNBC gives out much better financial advice. Also see Jim Cramer's show Mad Money. 

 

Edit: do I have to post a /sarc tag on this one?

Fri, 12/18/2015 - 18:33 | 6941026 herkomilchen
herkomilchen's picture

That sounds great!  I'm going to do that, because everything is awesome!

Do I have to post a /sarc tag?

Fri, 12/18/2015 - 18:51 | 6941077 zibrus
zibrus's picture

You forgot, everything is actually super duper awesome.

 

But seriously, my only point was we are all diving through as much information as we can to figure out what is going on in this world right now. It's complex and full of conspiracies. I find the comments sections on ZH more enlightening than the actual articles. Bottom line, you've got to take it all in, think about it, and use your best judgement. You're not the only one on this site to have been burned before by financial markets and/or bad advice (intentional or not). I myself am included. What's happening right now is truly history breaking and books will be written about it decades from now. Problem is that is decades from now. Right now we're all scrambling just to make it to the other side of this transition and to do so avoiding serfdom.

Fri, 12/18/2015 - 19:43 | 6941262 herkomilchen
herkomilchen's picture

I hear you.  That's fair.  Amen to struggling to escape serfdom.

Fri, 12/18/2015 - 21:09 | 6941494 Baby Eating Dingo22
Baby Eating Dingo22's picture

Books?

Don't you mean stone tablets?

Fri, 12/18/2015 - 18:40 | 6941050 Bay of Pigs
Bay of Pigs's picture

So, you've been here a whole 12 weeks and figured this all out?

Fri, 12/18/2015 - 18:54 | 6941097 zibrus
zibrus's picture

Long time reader here.

Fri, 12/18/2015 - 19:33 | 6941206 herkomilchen
herkomilchen's picture

I evaluate the merit of a poster's arguments to assess what he says.  Other instead rely on the number of weeks a poster's account has been active to assess what he says.  To each his own, I suppose.

Fri, 12/18/2015 - 22:07 | 6941661 Arthur Schopenhauer
Arthur Schopenhauer's picture

My presumption is this has something to do with Tyler Durden and the movie "Fight Club". Here, apparently one's credibility is based only on how long they have been a member of the club.

Fri, 12/18/2015 - 22:15 | 6941689 TheKinski
TheKinski's picture

I appreciate this comment, herko.

Fri, 12/18/2015 - 18:17 | 6940981 roisaber
roisaber's picture

The Fed et al have to be right about their policies of money printing and bailouts and currency manipulation every single time, into perpetuity.

Zero Hedge only has to be right once.

Fri, 12/18/2015 - 18:44 | 6941064 Peak Finance
Peak Finance's picture

Well the August big crash was the day after a pretty big Opex day as well. Same kind of drivers behind this. I remember it well as I had stuff expire like within pennies of the money the day before the big dump.  

Fri, 12/18/2015 - 18:44 | 6941066 cherry picker
cherry picker's picture

In the end what difference does it make?  For the average person they could care less  Their wants and needs are the things that affect them on a day to day basis. 

There are plenty of "the world will end tomorrow' sites around and some of them are featured on this site.  After being here for over four years I made the mistake of telling friends and family to pull their cash out their bank accounts some years ago after reading a few articles on ZH.  I ended up looking the fool as nothing happened. Now I take it all with a grain of salt.

I chose to stay for some of the insights by commenters and reading the articles pertaining to the atrocities the government is involved in.  Are they more accurate than the financial stuff?  I don't know.

Fri, 12/18/2015 - 18:58 | 6941111 Peak Finance
Peak Finance's picture

Reguardless of the economy it's always a good idea to keep a bunch of cash out of the banking system.

Plus, about the financial stuff, and all of the talk about market crashes and doom such, you know it only costs literally pennies per contract to hedge against this kind of tail risk, but the payoffs are huge, so it's kind of a fun distraction against the daily grid of eaking out some percents here and there while trying to make a living trading. 

 

 

 

Fri, 12/18/2015 - 19:57 | 6941242 herkomilchen
herkomilchen's picture

You hit my objection to the current analysis of markets on ZH on the nose.  ZH portrays these real and important risks as if they are primary risks, imminent, and tradable in their own right, rather than tail risks to hedge against as part of some other trading strategy.

Fri, 12/18/2015 - 22:19 | 6941704 Wild Theories
Wild Theories's picture

"rather than tail risks to hedge against "

 

well, since you figured that part out already, all you have to do is act on your own advice.

Fri, 12/18/2015 - 18:56 | 6941107 SheepDog-One
SheepDog-One's picture

And if frogs sprout wings, then they won't bump their asses a hoppin'....big deal.

Fri, 12/18/2015 - 19:28 | 6941197 walküre
walküre's picture

no higher highs and lower lows!

slow-mo melt and ride down down down

what is a "herkomilchen" anyway?

Fri, 12/18/2015 - 20:03 | 6941304 wizteknet
wizteknet's picture

Quote"herkomilchen

I get the market maker defense of 2,000 to protect against exactly the option-driven stop-loss plunge scenario ZH described.

However, if stocks go up on Monday, then I think the writing is on the wall.  ZH should own up to blowing hot air with not just this delayed-impact scenario but the whole rate-hike-apocalypse story.

Throw in the towel on the incessant stream of collapse-any-day-now articles that frankly just jerk good people around and lead them to lose money on bearish bets."

u maybe right antichrist & all that crap, but who is he? where is he? trump=5

Fri, 12/18/2015 - 20:43 | 6941418 LooseLee
LooseLee's picture

PFC Bootlicker. Why else make the conclusion you make?

Fri, 12/18/2015 - 21:52 | 6941615 scrappy
scrappy's picture

Markets go up. Markets go down.

It will be very bumpy in the year of the fire monkey.

We shall see.

The strength of the dollar will have to rest on us and true price discovery will occur.

 

Fri, 12/18/2015 - 18:09 | 6940945 buzzsaw99
buzzsaw99's picture

disappointed, should have been witchez-bitchez

Double, double toil and trouble;
Fire burn, and cauldron bubble...

Fri, 12/18/2015 - 20:08 | 6941308 wizteknet
wizteknet's picture

Give it to Eve to mess it all up alright! Satan tought her well to fk it all up, & royally!

Fri, 12/18/2015 - 18:20 | 6940986 Jack Burton
Jack Burton's picture

We have seen over and over for years now, any hint of Fed rate increase and the markets melt down. Nothing different now. The global economy is in no way able to withstand Fed tightening right now, or for years to come. The whole system is ZIRP addicted, and change will melt it down.

The Fed is tightening right into a recession, as if desperate to have the ability to cut to get us out of recession.

When central bank became the "Central Committee of the Communist Party Of Wall Street", all attempts to return to market based interest rates will only blow the economy up.

The debts are too big, they can't be added to, and the return on debt is nearly negative.

Call me when a 10 year world depression and revolution has run it's course. Thousands of Bankers and Hedge Funders, Private Equity Group Managers, Central bankers, TV Financial Talking Heads and others have been shot at sunrise.

Fri, 12/18/2015 - 21:51 | 6941583 Sorry_about_Dresden
Sorry_about_Dresden's picture

It will never happen. Every Central Bank on the fcking planet is tag teaming on the printing press and  taking turns playing bad cop. As the riots rotate to different capitols the news media has been captured and gutted. People are so exhausted they just don't give a shit anymore.

Try and withdrawal a thousand dollars in cash from your bank and I'll bet you will get arrested because no one needs that kind of cash unless they  are criminals. 

They won. Just surrender already and btfd.

Sat, 12/19/2015 - 11:01 | 6942765 Dragon HAwk
Dragon HAwk's picture

Hi I'd like 10 1oo dollar bills please, do you have those cheery little gift envelopes with the hole in the middle..  Thanks..

  Have a great Holiday mate..

Fri, 12/18/2015 - 22:31 | 6941746 tarabel
tarabel's picture

 

 

After 10 years of depression and revolution, what are we supposed to call you with? 

Smoke signals, rams horns, or jungle drums? 

Sat, 12/19/2015 - 12:00 | 6942914 eyesofpelosi
eyesofpelosi's picture

CB of course...

Fri, 12/18/2015 - 18:38 | 6941042 yellensNIRPles
yellensNIRPles's picture

The only thing that has happened so far is a tiny little ~2% dump. Enough of a poop for someone to make a shit-ton on the rebound Monday and buy their trust fund fucktards a new Ferrari. Nothing to see here until the shit really starts to hit the fan. Two or three days of +500 point dumps without significant rebounds and I'm sold. Until then I'm going to go get a fucking beer.

Fri, 12/18/2015 - 19:21 | 6941074 Soul Glow
Soul Glow's picture

Just a few months ago stocks crumbled.  Then they bounced but failed to make new highs.  Now the Fed hikes, stocks crumble, and you think nothing of it.  Well I'll have a beer too, but to celebrate the chance the Fed can't save the fiat ponzi after all.

Fri, 12/18/2015 - 20:13 | 6941323 wizteknet
wizteknet's picture

Wait till they go up .5 then .75 projections... They are shorting like a mofo before trust me.. Because they the only one who can afford to put billions in to make a masive profit, since taking it all away from 0% savers.

Fri, 12/18/2015 - 20:47 | 6941431 LooseLee
LooseLee's picture

I'm guessing you're a BTFD'er from Thursday?????

Fri, 12/18/2015 - 18:43 | 6941063 RiverRoad
RiverRoad's picture

Wake me up Jack at 666......there will be blood.

Fri, 12/18/2015 - 18:54 | 6941101 SheepDog-One
SheepDog-One's picture

So '2000 must be defended at all costs' was too costly I guess.

Fri, 12/18/2015 - 19:20 | 6941164 V for ...
V for ...'s picture

Most who made the audacious play against the witches are in the money today ;-)

Also today, Golem Sacks down 2%.  JP Morgue has another massive fine announced today, this time for hiding a 'conflict of interest', failing its private wealth clients. Both very similar to RBS, the bank that broke Britain, overseen on the way up and the way down by Rothschilds - Rothschilds and their cabal,  the world and the City of London's most venal mobsters.

Even with everything stacked in their favor, the biggest criminal class lost today. Good.

Just passing by to say well done ZH for calling it; writing about the ups and downs without fear or favor.

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