Last-Hour Buying-Panic Saves Nasdaq From Longest Losing Streak In 31 Years

Submitted by Tyler Durden on 01/12/2016 16:03 -0500

It just seemed appropriate...

A 65% tumble for the S&P? https://t.co/QAnEECpuGX pic.twitter.com/rlr67A4qk1

— MarketWatch (@MarketWatch) January 12, 2016

8 down days as of yesterday was longest losing streak since Jan 2008 but a red close today would have made it 9 down days in a row - The longest losing streak for Nasdaq Composite since May 1984

Deja Vu All Over Again...

As once again, USDJPY took over after NYMEX closed...

A desperate attempt to squeeze shorts at the open (Most Shorted spiked over 2% at the open) gave way to selling pressure... but then as soon as NYMEX closed - the squeeze resumed...

So panic buying stocks and panic-selling VIX saved the day...once again all sponsored by the NYMEX Close...

Leaving all the majors green by the close

Futures show the swings best...

1225 Dow points in 24 hours!!!

But it appears insiders are selling (since QE3 ended)...

h/t @NorthmanTrader

High yield credit markets remain deeply recessionary at these levels...

Treasury yields collapsed today (as China stopped supporting Offshore Yuan)... 30Y yields crashed 13bps from high to low back to 2.875%

It's pretty clear that yesterday's "odd" weakness in Treasuries given equity tumble was due to China selling TSYs sto fund their defense of the Offshore Yuan (and today we catch back down as they offer disappears)...

The USD Index pushed higher again today with CAD dumping under 70c for the first time since 2003...

*RUSSIAN RUBLE CLOSES AT RECORD-LOW 77.0650 PER USD

Commodities were very mixed with copper and crude carnaging while gold and silver were flat but started to accelerate higher into the last hour as things started breaking...

WTI broke down below $30 foir the first time since December 2003...

So fingers crossed that China does not open and that API does not have a huge build (as expected).

Charts: Bloomberg

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Tue, 01/12/2016 - 16:28 | 7036868 mandalou

They cant have the wegro nervous.

Tue, 01/12/2016 - 16:38 | 7036950 corporatewhore

isn't sotu stfu?

Tue, 01/12/2016 - 16:11 | 7036677 back to basics

Spiking oil prices were good for the futures in the morning, and lower oil prices were good for the market in the afternoon.

Got that?

Tue, 01/12/2016 - 16:12 | 7036679 toadold

Is that puking unicorn stump broke?

Tue, 01/12/2016 - 16:13 | 7036700 R.R.Raskolnikov

Very good. Just keep those stocks in green for a couple of weeks so I can buy more puts on Facebook. I would really appreciate that.

Tue, 01/12/2016 - 16:15 | 7036729 Sudden Debt

The first signs are showing everywhere that the system is breaking down.

And the end of the year retail numbers will prove it.

Tue, 01/12/2016 - 16:18 | 7036764 thismarketisrigged

totally normal.

2 fucking days in a row where the ''market'' dips after the opening surge, and then by some ''miracle'' the ''market'' surges for no reason.

this is the 2nd fucking day in a row.

AUDIT THOSE FUCKING BASTARDS NOW!!!!!

Tue, 01/12/2016 - 16:29 | 7036822 Dr. Engali

In the old days we used to call that a gap fill and it was a good sign depending on whether you were long or short. In these rigged markets you can't trust anything.

Tue, 01/12/2016 - 16:25 | 7036838 Kaiser Sousa

hey stop ur complainin Rigged...

its our fault for not knowing how to trade like other "professionals" apparently around here who "be gettin' paid like a mother fucker" utilizing their ingenious strategies on the way to incresing their "fiat" riches....

that and we refuse to participate in perpetuating the bullshit no matter what the "percieved" profit....

Tue, 01/12/2016 - 16:22 | 7036803 Conax

SOTU tonight. The only thing we didn't get, that I sort of expected, was a driveby on the metals.

I knew they would drag the paper turkeys up into the green, no matter what it took. We coulda had a real president, (Dr Paul) but nooo, we had to have the choom meister and his gay band of fellow travelers. The tribe feels the need to paint the tape every time that mutt has to speak.

Watch for the driveby this evening.

Tue, 01/12/2016 - 16:23 | 7036819 Sam Spade

Damn, I was hoping for another episode of my favorite new tv show, 'Markets in Turmoil'. Maybe tomorrow...

Tue, 01/12/2016 - 16:24 | 7036830 JohnGaltsChild

Gotta love those dead cats.

Tue, 01/12/2016 - 16:25 | 7036842 SoDamnMad

Isn't it great the "Audit the Fed" Bill didn't go anywhere in the Congress. Otherwisw we woud have heard that the Fed has a couple trillion of stawks on their books just like PBOC.

Tue, 01/12/2016 - 16:54 | 7037067 herkomilchen

The Fed almost certainly does not have stocks on its books. If you look, you'll likely see only bonds. Nothing to see here, move along! The Fed member banks almost certainly hold the stocks in prop trading accounts. In exchange for correspondingly valued considerations from the Fed and Treasury.

For example, JPM buys $1B in stocks at behest of the Treasury PPT and the NY Fed gives them a correspondingly valuable priority slot to front run Fed bond buying while the Treasury remains silent as the Fed prints money and blasts it into banker pockets via paying IOER. Web of quid-pro-quos, none of which show up on any audit.

If you study how the Fed was constructed, you'll see none of the Fed's grift is direct. It's all obfuscated via layers of indirection with the value transfers accomplished via conveyance of intangible, non-quantifiable, yet vastly lucrative advantages. Camouflage to keep the sheeple from seeing the Fed for what it is.

Tue, 01/12/2016 - 16:32 | 7036896 Arthur Schopenhauer

I'm just kicking my LONG heals with joy with all this panic buying.

Vornado Realty Trust (NYSE:VNO)

Brandywine Realty Trust (NYSE:BDN)

Tue, 01/12/2016 - 16:42 | 7036986 Midnight Rider

Options expiration. Lots of crazy crap likely to be going on the week.

Tue, 01/12/2016 - 16:52 | 7037060 gatorengineer

copper under $2, oil at $30, somethings gotta break dont it? Glencore?

Tue, 01/12/2016 - 17:09 | 7037143 Montani Semper ...

One would think so. A few short weeks ago $40 oil and 221 USD/JPY was supposed to be the end-all, the rubicon, the line in the sand that would crush the markets, yet here we are.

The future(s) are so bright I have to wear shades.

Tue, 01/12/2016 - 17:57 | 7037062 Rellorellin

You are all looking at this the wrong way. Don't fight the FED, until the FED has lost complete control. They are still at the weel and steering this sinking ship. There is much maniplulation left. They still have their magic printer. Not until you really see things breaking down economically, will you know it's time. Economic #'s are bad across the board, but there is yet much more room for deterioration. Algo's can still make money for the masters. When volitility returns like we seen in August and we see 1000pt spikes, you will know that the masters have instructed their algo's to sell off. Manipulating this market is like childs play for masters.

Tue, 01/12/2016 - 17:01 | 7037074 fockewulf190

You traders out there....I really wonder how you peeps have the nervous system to withstand these so called markets. I really do wish we still lived in a world where you could take your hard earned currency and invest it in the stock markets, or in bonds, or even in a savings account in a bank. Those days are all but over. Your stocks are at the mercy of supercomputers. The bond market is a gigantic bubble, and the banks can bail your ass in at anytime. Even the meager FDIC insurance for the little guy has been totally ursurped by the banksters!

Fuck all that! I´m constantly stacking phyzz with evey spare piece of fiat I can get my hands on. That, and hard assets. I like to sleep. Good luck to those who choose to trade within the shitstorm. I´d end up being an alcoholic if I was doing it.

Tue, 01/12/2016 - 18:08 | 7037447 USSLiberty

"I'd end up being an alcoholic if I was doing it."

LMAO Yeah, come on in, the water is fine. I sleep better being mostly short though. Oh, and for the PPT spikes up, with no fundermental reason? That's where a bottle of quality Kentucky bourbon fits in nicely.

Of course, the debt elimination, guns, ammo, silver, gold, cash, in that order, is also a hedge that has been put into place long ago.

We live in interesting times.

Tue, 01/12/2016 - 18:52 | 7037663 Vlad the Inhaler

Phyzz can be confiscated pretty easily, and at the same time they usually announce a ban on spending it, with stiff consequences. So yeah, they got you, time for some booze...

Tue, 01/12/2016 - 18:53 | 7037666 lakecity55

If Trumpster gets in, he needs to pull the plug on the HFT computers.

Tue, 01/12/2016 - 17:04 | 7037107 MFL8240

To simplify things, the market is not real, it is not based upon earnings or future earnings, it is based upon how much printed money they can throw at it to keep the illusion of prosperity.

Tue, 01/12/2016 - 17:14 | 7037189 theeseer

This is what happened girls! Yesterday didn't you notice that the FED "returned" billons to the Treasury? Then of course the Treasury sells bills and the banks put the money in the Matket. Its that simple its the current PLUNGE PROTECTION TEAM. They are deathly afraid of a crash and will do what it takes to punish short sellers.

Tue, 01/12/2016 - 17:14 | 7037194 More Ammo

and PPT wins again...

Tue, 01/12/2016 - 17:33 | 7037288 CHoward

I love happy endings. ;)

Tue, 01/12/2016 - 18:09 | 7037452 jmcoombs

so you like those Oriental massage parlors...........

Tue, 01/12/2016 - 17:51 | 7037365 USSLiberty

I hope this transitory Iran hype pushes oil up a little more, so I can add some more XLE puts. Supply is still up, demand is still down, and drillers are still losing cash. Let the PPT pump it, if they are. It only fattens my gains.

Tue, 01/12/2016 - 18:04 | 7037426 Lumberjack