Stocks Flash Crash Into Close As Emerging Market, Commodity Carnage Spreads

Tyler Durden's picture

Update: S&P Futures tumbled back to the lows of the day after hours...

 

S&P remains just in the green for 2015...

 

2058.90 has just become the most important number in the world...

 

There was a major Institutional seller at VWAP all day...

 

And it seems like someone puked into the last 30 minutes...

 

With a decent-sized sudden flash-crash as the 330RAMP was about begin...

 

 

They tried to ramp 'em around 130pmET - that failed - and then at 330pmET it snapped...

 

Futures show that selling began as soon as the US day session closed last night and accelerated as China opened and Yuan collapsed...

 

Treasury Yields oscillated in a narrow range today... (front-end outperformed 2Y to 5Y about 2bps lower, out years unch)

 

HY and IG bonds continues to decouple (as we suspect systemic fears in the credit market lead traders to hedge using thge 'cheapest' option - LQD - as opposed to a more expensive but lower tracking error alternative like HYG or HYCDX)

 

Leaving the LQD at key support relative to HYG...

 

Energy credit markets continue to indicate more weakness than stocks "believe" is possible...

 

The Dollar Index rallied modestly in the day against the majors...

 

But EM FX collapsed against the USDollar (to a new record low for JPMorgan's EM FX Index)... the last time EM FX plunged like this was when China devalued in early December...

 

  • *RUSSIAN RUBLE ENDS 2015 AT RECORD-LOW 73.59 PER U.S. DOLLAR

Oil Producers saw FX rates slammed...

 

And they are not  being helped by the fresh collapse in crude from Iran and Saudi comments, and US production and inventory increases...

 

 

As Dollar strength weighed on PMs but Copper was bid... not how once again silver and crude were glued to each other...

 

Finally, we thought this worth a glance... hope springs eternally transitory...

 

Charts: Bloomberg

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Silky Johnson's picture

Thar she blows!!!!!!!

Slomotrainwreck's picture

Ho Lee Mo Lee! it's the China Syndrome Christmas dump.

knukles's picture

What?  No PPT?  Whazzappenin?!?!?!?!
Ah hah!  I got it!  No Christmas in the Statist model.  Deal with it you heathens and blasphemers!  May you hedge fund positions be wiped from the face of Humanity!
Get long of long treasuries.... it's gonna be one helluva a ride one day!

spastic_colon's picture

as much as I would like to think its not true; I beleive the PPT is planning a january ramrod...ya know....for confidence purposes.

knukles's picture

Well, I bet you guys on the PPT are the kind that would fuck a person in the ass and not even have the goddamn common courtesy to give him a reach-around. I'll be watching you.
        -GnySgt Hartman (on the PPT)

Bay of Pigs's picture

We cornholed some folks....

 

TheFutureReset's picture

The PPT can't be active everyday at 330. Investors front run at 130, expecting a 330 infusion. Today the PPT disappointed. 

The downward pressure is fierce. When the PPT owns everything, they will be askless, and we spike to the moon before utter collapse. 

Crawdaddy's picture

It's a huge shit-sandwich and we're all gonna have to take a bite

 

Kubrick FTW!

Barnaby's picture

His moon landing is the best. That man is a hero -- ensured all our freedoms for two generations.

thesonandheir's picture

Gold again treated like the unwanted red-headed stepchild.

Slave2Fashion's picture

I asked yesterday, and I'll ask again today, what do you guys think gold will do if this market really does go down dramatically? I used to think that when the market went down, gold went up, but the last few years that theory seems to have been very wrong. I know it's a severely manipulated market, but if things really go to hell in a hand-basket, what will probably happen? Up, down, sideways?

Do you all think that gold is bottoming or still has a way to go? Silver seems fairly priced, but gold still seems a little high to me. What say the smart guys?

Barnaby's picture

Just like Ag, Au is a measure of electronic success. Depression in electronics means it's cheaper for some 13-year-old in Gambia to beat my old CRT with a stick until the gold, silver and tin literally falls out.

TheFutureReset's picture

When the gold manipulation ends, the confiscation begins. Gold is such good money, everyone wants it, including the fascist western govts. You've seen those cartoons with the stick figures, showing what socialism, fascism, communism etc is? Fascists will shoot the first gold bug (or rendition them) and the second gold bug will give in and let their fortune be confiscated. 

The only way to hide your fortune is with an instrument that is so new they don't have the racket set up yet. Try bitcoin.

Hackers often say the weakest link to attack is the people. Social engineering is the weakness. Physical security of gold and silver hoards rely on people. Vault owners, managers, employees. The physical nature exposes the social engineering angle. Bitcoin's security relies on math, not people. 

29.5's picture

If you accept that the market is severely manipulated, then why are you asking what we think? Put yourself in the shoes of the Fed... you want AU/AG to be as low as possibe forever in order to maintain confidence in fiat. Volker said one of the biggest mistakes he made was not to put pressure on gold during the crisis he was involved in. Maybe tmosley is right, the paper price goes to zero but physical price explodes.

Slave2Fashion's picture

I ask because I honestly think that most of the folks here have a much better grasp of what is going on than I do. I've been lurking here for nearly two years trying to educate myself, but I think some of this stuff is so complex I'll never understand.

But what if the Fed begins to lose control? I would imagine that price manipulation could only go so far. I know that 7-8 years ago, gold was going for around $650 an ounce and silver $12. I know that there's been a considerable amount of inflation in the meantime, and deflation in many commodities.

From reading this website and the comments, I get that we're the cleanest dirty shirt, at least for now. So dollars go up against other currencies. But what if this changes?

Just trying to figure out how best to weather the coming storm... I'm not like you guys, I have no financial background. Just disturbed by what I see going on around me.

MachoMan's picture

I know that there's been a considerable amount of inflation in the meantime, and deflation in many commodities.

No...  inflation is a monetary phenomenon.  You're confusing expansion of the money supply and price fluctuations; they are two separate things.  In other words, an expansion in the money supply need not cause the price of everything to increase equally, and some markets may even decrease during periods of monetary expansion.

Just trying to figure out how best to weather the coming storm... I'm not like you guys, I have no financial background. Just disturbed by what I see going on around me.

You and everyone else.  The people who profess to know the answer are merely throwing darts.  The simple answer is that you're going to be relentlessly fucked unless and until you (and a sufficient number of others) push back and are successful in the effort.  To the extent that you do make the right call from an investing standpoint, I have a sneaking suspicion that you'll need some muscle and clout to keep it.

The important part at this juncture is to be asking the questions and preparing how you see fit.  It may help, it may not, but you will be able to keep your wits through whatever may come and your rationality will likely be your biggest asset at any given point in time.  Best of luck.

TheFutureReset's picture

You forgot to say, "move away from large govts" in addition to preparing. Countries with a smaller state apparatus are much more attractive than places with behemoth fascist states. And their infrastructure is more local and sustainable. 

stant's picture

Looks like us dalla cash for the next 2 yrs is your best bet . Pick up some shiny on the the dips as the dalla rises. Don't bet the farm. War is in the cards and that ones wild. Freezer full of the good stuff to. Just a IMHO

TheFutureReset's picture

I agree "war is in the cards", but how that looks remains to be seen. Total war since nuclear weapons has yet to be seen. Proxy wars and terrorism seem like the new instruments. Private warfare could wars on the frontiers, colonies, trade wars etc, could serve as lessons to how this plays out. Total nuclear war is unlikely. 

stant's picture

5th generation warfare. It is developed as goes along. So you can't predict it

lincolnsteffens's picture

Everybody is screwed. Plain and simple, it is impossible to know what the truth is any more. I've stacked and maybe will stack some more. The only guys I know that are making money are the short term traders that understand the numerical norms of technical analysis. Even the "smart" hedge fund guys have gotten it wrong.

Governments, banks and the mainstream media are just putting on a drama that is made to keep you calm about the economy and scared to death about your personal safety. That means eventually if you are not removed from the financial markets or monitor it for hours a day with a deep knowledge you will get creamed.Relating to gold and silver as above with lies, market rigging with no consequences, you just have to make a decision for yourself what to buy and how much.

Many technical analysis people believe there will be one more washout in precious metals (known as capitulation) before the final leg of the bull market in gold and silver can move on up. These things can happen in nano seconds to hours in dramatic price moves. Just know that nothing is safe anymore since we are nearly at peak criminality.

29.5's picture

You're looking for the big picture, I assume? Because there's no one here to my knowledge that can predict daily market moves with accuracy. What you need to know is that 1) As long as people value AU/AG (which has been thouroughly documented over thousand years) it will retain a "value." What that value means is up to the "physical" market and eventually overwhelms the paper market. 2) It used to be the norm that investors would put 10% of their cash into precious metals, but I believe that has been (sadly) reduced lately. 3) If you are trading AU/AG ETFs then go fuck yourself. 4) The prior three points still stay constant but this one is my personal idea: The idea that *when* the Fed loses control and the balance sheet consumes itself into a global thermo-nuclear fiat explosion, then a *new* Brettonswood style currency might come into effect utilizing SDR's on a government scale but each country reboots. Something along those lines. Good luck.

Slave2Fashion's picture

Thanks to all for your responses. By the way, 3. isn't necessary. I'm talking physical.

Just have a little cash and wondering if now might be the time to buy. I bought some when it was higher, and I don't really regret it. Even if everything goes seriously sideways, eventually folks need to exchange goods and services and PMs seem to hold up. At least you don't lose everything; I can always make jewelry out of it,

Good luck to all of you, also!

TheFutureReset's picture

You might become a political enemy if you have large amounts of physical (me included). Just like people with stored food will become targets of mobs, people with physical will become targets of govt mobsters. You could definitely lose everything. Gold is good in small innocuous amounts, in large amounts it's dangerous in these times. 

Slave2Fashion's picture

When I said "a little cash", I really meant a little cash! Wish I could buy enough to get on a list!

tarabel's picture

 

 

The one harbinger I keep an eye on is the increasing spread between specie on hand and paper claims against it.

These will have to be closed out in some fashion that doesn't bankrupt the brokers or land them in jail.

The only way that works is to push the price down and then declare emergency conditions which allow them to settle for cash equivalents rather than having to produce any actual Ag.

As a financial vehicle, however, everything is now a gamble in a rigged game filled with house players so people have to plan on eventually getting monkey fucked as they run for the exits.

As a store of value, one needs to detach oneself from the idea of cash value of gold at this time.  If gold were to suddenly shoot up to a million dollars an ounce, there would be people dumb enough to jump at it. At 50,000. At 10,000. And so it goes. Unless one is properly prepared mentally, there exists an offer one cannot refuse-- but should.

Crawdaddy's picture

Agree tarabel. Anything that is wealth related is controlled and managed carefully. You can play in the game but the game managers have your ass where they want it.

They want to put everyone in the poorhouse at the same time so the fucknots can push their precious global "solution" down everyone's throat.

 

zeroaccountability's picture
zeroaccountability (not verified) Slave2Fashion Dec 31, 2015 12:13 AM

I read a Dent piece on Stockman's site today, sez gold $700 and oil $8-20???

My guess is, when it all hits, there is nowhere to put money except PM's (and possibly treasuries).

No safety in bonds, currently in a record bubble, no safety in stocks, ready to crash 60%, no safety in Real Estate, in a bubble...only safety, and the least loved and cheapest asset right now: SILVER.

Barnaby's picture

... and silver got buttfucked like an Indonesian nanny.

junction's picture

Time for Buffett to cash in his chips.                                                           Burn, Baby, Burn!  

spastic_colon's picture

ya exactly.....what were the strike prices and expirations on all those index call options he bot in 2009?

ArtOfLife's picture

"index call options he bot in 2009" 

I'm guessing you are talking about the puts he sold in 2007 on the S&P500, NIKKEI225 and Eurostox. They expire in 2027. The strikes were all at-the-money, 1433-4158-17441 respectively for the S&P-Eurostoxx-Nikkei components.

spastic_colon's picture

i swore he bot some OTM LEAPs in 09.....I remember ZH posting about it too............i think

ArtOfLife's picture

So he's holding Berkshire Hathaway stock since 1965, but now is the time to get out?

Crawdaddy's picture

Buffet only cares about money to the extent it furthers the objective of the system he worships.

TheFutureReset's picture

He doesn't worship it, it is the system he has bought into is all. It's an investment to him. 

Baa baa's picture

Time for that sack of scat to redistribute his wealth and keep a 100 million. Now tell me, what's so wrong with that... The fear mongers and greedy need not respond.

stumbLebum's picture
stumbLebum (not verified) Silky Johnson Dec 30, 2015 5:55 PM

You mean all 100 points down? If that's drama for you, life must be pretty dull.

Wulfkind's picture

Sorry to hijack the thread but I just found out that Ian Murdock co-creator of the Linux Distribution Debian ( he's the IAN in Debian) had died.  Debian is also the basis for Ubuntu as well.

What's mysterious is before he died there were several Tweets and posts on his website of him complaining of police abuse against him.  Here's a taste.

 

they followed me home

then they pulled me out of my house and did it again

i had to have swtitches then followed my home from there

i asked if they had cameras

they said no

shall i post pictures for all my bruises from my against the police officers?

where they put you in a cell with absolutely no instructions whatever aside from the spell on the floor in piss?

Writing up my experience for others to hopefully prevent others from police abuse then you won't hear from me again

@jacksormwriter wants me dead

i'm going to post my case on my blog.. if anyone can post it on hacker news or wherever i would apprieciate it

i'm hoping coming from a successful white guy it will help everyone

(1/2) The rest of my life will be devoted to fighting against police abuse.. I'm white, I made $1.4 million last year,

(2/2) They are uneducated, bitter, and and only interested in power for its own sake. Contact me imurdock@imurdock.com if you can help. -ian

The police are uneducated, evil, and sadistic. Do not trust them.

The rest of my life is to fight against the police.. they are NOT friends, so don't ever ever believe otherwise.

What does one have to get education wise to become a police officer.. asking for a friend.

"We're the police, we can do whatever the fuck we want.."

This was right after the female officer ripped off my underwear.. I guess that's not considered rape if you're not a woman being raped.

I am a white male, make a lot money, pay a lot of money in taxes, and yet their abuse is equally doned out. DO NOT CROSS THEM!

 

Here is a link to the Google Cache of his Twitter account

https://webcache.googleusercontent.com/search?q=cache:le7oSCjuRxgJ:https...

 

Very strange

Wulfkind's picture

He committed suicide over alledged police abuse.  Someone put the rest of his tweets on Pastebin

 

5:48pm: Writing up my experience for others to hopefully prevent others from police abuse then you won't hear from me again 5:45pm: where they put you in a cell with absolutely no instructions whatever aside from the spell on the floor in piss? 5:45pm: shall i post pictures for all my bruises from my against the police officers? 5:38pm: they said no 5:38pm: i asked if they had cameras 5:37pm: then followed my home from there 5:37pm: i had to have swtitches 5:36pm: then they pulled me out of my house and did it again 5:36pm: they followed me home 5:36pm: i had to go to the hospital 5:35pm: they beat the shit out of me twice, then charged me $25,000 to get out of jail for battery against THEM 5:34pm: if anyone wants to come over and see what the police did to me i would be more than happy for that 5:30pm: I'm not committing suicide today. I'll write this all up first, so the police brutality ENDEMIC in this so call free country will be known. 5:27pm: Maybe my suicide at this, you now, a successful business man, not a NIGGER, will finally bring some attention to this very serious issue. 5:25pm: My career is over now, so I'll be gone soon. 5:23pm: Quote: "We're the police, we always win." 5:22pm: I'll write more much later. They still don't have cameras on all police so I'm going to use my somewhat celebrity to hopefully stop this. 5:21pm: My bail for "assault against a police officer" are all that: $25,000. 5:20pm: Then beat me up some more. 5:20pm: I'll write more on my blog later. But the police here beat me up for knowing on my neighbor's door.. they sent me to the hospital. 5:17pm: https://t.co/I1CSCJErWf 5:14pm: watch my blog later http://ianmurdock.com

5:13pm: i'm committing suicide tonight.. do not intervene as i have many stories to tell and do not want them to die with me #debian #runnerkristy67

 

http://pastebin.com/yk8bgru5

trader1's picture

watch this story get buried...

 

reddit already locked down this megathread...lot of speculations over the circumstances leading to his death:

https://www.reddit.com/r/programming/comments/3ytdsi/ian_murdock_creator...

 

stocktivity's picture

It's all Bullshit!!!   How come when it goes up 190 points yesterday, it was due to low volume manipulation by the PPT. When we go down 117 points on low volume, all kinds of reasons for a coming crash? 

Soul Glow's picture

BEAR STERNS IS FIINE!

knukles's picture

Cramer still ha s job.  Do you believe that crap? 
Come to think of it, so do Liesman and Pissonme...
                        (glum thoughts)

lincolnsteffens's picture

Of course they still have their jobs! They will until the last viewer turns it off.  I just quit Dish Network. It just continued to offer less and less I wanted to watch until even Turner Classic Movie channel was putting up mind control interludes between movies.

I think everyone should turn their backs on TV. It just supports the cabal's theme and is bad for your psyche and health.