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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 - 19:28 | 6941202 MrNosey
MrNosey's picture

It's pretty obvious what's now coming down the road!

The agenda rolls on......

http://beforeitsnews.com/conspiracy-theories/2015/12/as-events-spiral-ou...

Fri, 12/18/2015 - 19:40 | 6941250 harrybrown
harrybrown's picture

Just stack & sit back.... fuck it have a drink too Bitchezzzzzzz mmwahahahhaahh
picked me up another 100+ Britannia's today.... And gona back the truck up in January... "IF" there's any left?

Fri, 12/18/2015 - 20:27 | 6941344 wizteknet
wizteknet's picture

But bet of all the bond market will come back & bite there ass, because the masters will say what the fk u fkd us!  Told u all so, prophetic... lol Then there will be blood from the masters pissed! True depression, wish yah luck!

Marketwatch "This is DJIA’s most volatile December since 2008"

Fri, 12/18/2015 - 20:53 | 6941446 Chris P
Chris P's picture

All this is a set up for Santa rally 

Fri, 12/18/2015 - 21:10 | 6941498 The Fonz...befo...
The Fonz...before shark jump's picture

Fuck you Cramer!!

You said tech stocks were bulletproof for your portfolio

You hear me!!!!

You said BULLETPROOF!!!

Fri, 12/18/2015 - 21:19 | 6941527 sevensixtwo
sevensixtwo's picture

>Post-Yellen, bonds are outperforming notably.

Might be easy to circumvent normal transction protocols with dodgy money in the bond futures market.  Just use intra-governmental accounts at institutions that play the game of leveraged collateral safely beyond the highest layer of government scrutiny or ccountability.

 

 

Only when the tide goes out do you discover who's been swimming naked.

Warren Buffett 

Fri, 12/18/2015 - 21:32 | 6941560 khakuda
khakuda's picture

Earnings completely missed this year, credit spreads continue to blow out, transportation stocks have been falling all year, commodities continue to get wrecked, particularly energy stocks and MLPs which have crashed and market breadth has deteriorated to the point that a few stocks are holding the whole thing up. All of this is been true for months and the market has been likely to roll over for quite some time now. The Fed provided the catalyst. The first policy mistake was not raising rates years ago. The second was raising them just as things are falling apart.

With dividends, the S&P is still flat for the year compared to all the carnage in some of the other markets. I do not expect the next several months to be kind to equity investors.

Fri, 12/18/2015 - 21:40 | 6941578 wizteknet
wizteknet's picture

merry fucking xmas

Fri, 12/18/2015 - 22:50 | 6941795 ich1baN
ich1baN's picture

I think the interesting thing about the media's attempt to shape the mind is that all day they kept saying stocks were lower b/c oil was lower.... what a bunch of BS. Oil wasn't the reason the entire SP500 complex was lower. 

They do this so that you don't blame it on the Fed. Complete crock. 

Sat, 12/19/2015 - 08:03 | 6942472 Last of the Mid...
Last of the Middle Class's picture

QE train is coming round the bend!! The Bartioromo bullshit on fox 113 is just massive. You have to have the mind of a fucking frog to believe that shit. Their policy is never EVER speak the truth.

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