Stocks Wipe Out Post-Fed Gains As Deutsche Dread Batters US Banks

Tyler Durden's picture



VIX spiked to 14.5, its 100-day moving average, ahead of tonight's debate...


As Deutsche Bank contagion concerns...


Spark spike in European bank counterparty risk...


and Germany CDS is starting to show signs of concern...


Sent US bank stocks tumbling... (among the worst days for Financials since Brexit...


But financials have a long way to catch down to the yield curve...


Goldman and JPMorgan weighed on The Dow but S&P and Nasdaq also tumbled to pre-Fed levels..


Dow closed below its 100DMA...


But Post-fed Bonds & Bullion are stil green...


TWTR spiked above 2015 close levels, crushing shorts, on DIS rumors...


Bonds extended their post-Fed gains with the entire curve dropping 2-4bps today (small flattening)...10Y yield broke back below 1.60%. 5th streight down down in yields.


The USD Index slipped lower on Yen strength (helped by CAD weakness - despite oil gains)...


Gold was flat on the day and Silver slipped BUT crude kneejerked higher on Saudi cut hopes...


The machines ramped oil on Saudi headlines to take out stops from Iran headlines... oil faded aftwer NYMEX close...


Notably, heavy protection buying is evident in the crude complex...


Charts: Bloomberg

Bonus Chart: Treasury positioning remains extremely short...

Bonus Bonus Chart: "Contained"


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froze25's picture

Trump 2016, Do you want a weak sick criminal at the helm during a collapse or a Strong Alpha Male that loves our Country? I will take stainless Steel Balls over a depends wearing sick person that has a degenerative Neurological illness.

Kaiser Sousa's picture

another day, another fraudulent phony paper price takedown of the only 2 forms of real money on absolutely NO "PRECIOUS” metal negative news or data WHATSOFUCKINGEVER…

u know the routine by now, or u should cause I’ve been pointing this bullshit out time and time again for the last 7 fucking years…once again take note of when and in what “markets” all the “selling” of imaginary Gold & Silver took place while at the same time the fucking Dow Jones Propaganda Index stood in carbon freeze around the 18,100 mark on NO POSITIVE macro-economic news or data WHATSOFUCKINGEVER and vapors…

banks insolvent means sell Gold & Silver...coincidence…right???
enjoy the sale cause i sure as hell am…


froze25's picture

Last time the Shit hit the fan 2008, all asset classes went down. Gold came back first, then stocks then real estate.

SheepDog-One's picture

Fueled by about $10 trillion in FED free money gifts to banksters.

nibiru's picture

It is about things that will not lose value - i.e. after SHTF will be worth more in fiat.


keep stacking. Rest is mere baloon.

PlayMoney's picture

their hits are having less effect as prices don't stay down. at some point prices spike and the banks creating all these short contracts gonna get their azzes handed to them.



new game's picture

none of this means shit. stock market is a hellova distraction and it's working.

can't see the real players, their invisible, because it's your mind.

thismarketisrigged's picture

these bastard bankers r going to pray for a lehman type of event when db fucking collapses.


fuck these asshole bankers, fed up with them.

Cybloom's picture

Probably some debate fears aswell influencing the markets.... "please dont fuck it up tonight Trump... PLEASE"!!!

Kaiser Sousa's picture

he will and it doesnt matter anyway...

Carlin told you but apparently you didnt hear...

'they dont give a fuck about you...."

ps: keep the down votes coming just like keep believing that whoever the next "puppet in chief" the shadow government installs in D.C. is gonna save your sorry asses from what awaits this bananna republic...

sheeple....always lookin for someone else to come to the rescue.

SheepDog-One's picture

All Trump has to do is give Hitlery a lot of slack rope to hang herself with, which she'll do. Also I doubt she can last they 90 minutes without her secret medical staff and handlers. Anyway, all Trump has to do now is nothing, and I'm sure he knows it.

Keltner Channel Surf's picture

Similar to Real Estate’s “location, location,” today’s day-trading lesson was clearly:  “amplitude, amplitude, amplitude” along with our old friend volume.

While some old-school technical trend traders had to launder their jeans after seeing a plummeting stochastic early, with volume hovering below recent low averages, it was time for intraday amplitude indicators to really shine:  shouting “no soup for you!!” at Concord-engine decibel levels, suggesting we wouldn’t end the day, as pre-Clinton-Trump nacho-makers peel avocados by the dozens, with a Poe-like descent in to the maelstrom that appreciably went past the 10:00 hourly bar lows.

This supports my belief that intraday algos have a pre-wired “volume, dammit!” trigger that automatically leads them to constrict the post-10 range below what ancient relic ‘momentum’ indicators like the MACD would suggest, profiting from intraday trend traders’ stop orders, given they prefer to ignite, but NEVER do the heavy lifting.

Having learned my lesson the hard way as a newbie, I found even the prospect of a Burnley-Watford match preferable to a late afternoon Russell continuation short.  If asked by a fledgling trader the most important aspect to work on, I’d say, without hesitation, discovering reliable intraday amplitude indicators (beyond volume), in today’s mean-reversion world, is absolutely paramount.

Keltner Channel Surf's picture

Have you seen the new stupid GEICO commercial?  Worst attempt at a New Zealand accent in history:

(Couldn't find the whole thing online, only the end, but it's about a maker of funny glasses that sends an order to New Zealand, apparently purchased by a few deer)

Keltner Channel Surf's picture

I know you New Zealanders (not sure if you still retain your accent) hate it when folks assume you talk just like Australians, but this isn't even close to Australian, sounds like a mixture of England Cockney and Southern Ohio.

brada1013567's picture

I Have been told mine is hard to place, grew up in Texas mainly, spent a long time in Chicago and now NY

Keltner Channel Surf's picture

That's right, forgot you told me already.  Still, there's probably one word that would give away your NZ heritage.  For Canadians/Minnesotans it's the 'o' sound in "about."

For you, perhaps it's "tuatara" or "Stop-Loss" ...

brada1013567's picture

Probably, my wife's heritage is Nova Scotia, it comes out when we visit her relatives. I get more Texas if I am around my friends from there for any length of time

medium giraffe's picture

To spot a Kiwi, surreptitiously try to get them to mention Lord Of The Rings director Peeder Jickson..

Clock Crasher's picture

"Dow closed below its 100DMA..."

Dow 100DMA closed below 200DMA on deck

billhilly's picture

I LOVE that last graph where Lehman shows the flatline !  It is just like an EKG where the heart has stopped beating...If only all the TBTF's could have a chart like that we could begin to repair our country.

Yes, Death to the Banks !

jcdenton's picture

It is certainly possible ..


Getting more probably every stinking ..



Mr. Big's picture

What an entertaining day!

booboo's picture

Can Hillary muster up the physical strength to endure the grinding and grueling trench warfare of a 60 minute debate? Find out tonight as the bare knuckle winner takes all fight. Can The veterinary clinic pump enough steroids into the clotted veins of this once not so great hag to keep her hobbled ankles from collapsing? Tune in for a show down.
If she buckles cover your longs, Wall Street will flow in rivers if loose fecal matter.

SheepDog-One's picture

One of Hitlerys body doubles could probably last the 90 minutes, but quickly everyone would realize 'Hey, this isn't Hitlery Clintongue at all!' even buttboy Lester Holt would have to call her on it. Green screen won't work either, and 90 minutes is a long time with a loaded Depends.

rocknrollinhoneybadger's picture

On the yahoo financial page - "Dow drops 100 points as investors eye tonight's debate"

These deranged twats are really blaming a debate for the drop.



TheVoicesInYourHead's picture

Smells like teen spirit!

Hohum's picture

Not off the lows!

Paracelsus's picture


      I learned a bit from the late great Tanta Dungey.When the share price starts collapsing there will

    be a margin call to reestablish the ratio in the loan terms. The Bank (here DB) will have to sell an asset

    to have cash ready to meet this margin call. (Much like poker,"Ante up!").

       The sale of this asset into a flooded market (people smell Panic) will depress the market value of all

     similar assets,and the Bank could well realize a loss,by being force to sell at this time.

       The Bank share price gets pummeled again,the margin call is repeated,and the spiral continues.

     The factor complicating things is the enormous derivative book that DB has outstanding.

     These contracts are sitting in the file drawers like ticking time bombs,and all the Central Bankers are aware

      of this. Deutsche Bank is too big to bail out by anyone.I think the Fed is sending a message with this DoJ fine.

     It could be about Putin or Syria,or Brexit,or a combination of issues. 


     The  Fed to Merkel: "We will drop the $14 Bill. fine if you promise to behave".

     Merkel to Fed:  "Haven't you seen the latest ballot results? I'm getting my arse reamed because of your Syrian war

                              refugees flooding the continent. How's about taking five million muzzies off my hands and then

                               maybe we'll talk?"

     Fed to Merkel:    " Wow,what's the German for "hot potato ?"  Sehr warmisch Kartoffeln!


       You just can't make this stuff up...

Zeusky Babarusky's picture

Douche Bank in flames. CONmerce Bank circling the bowl. I love the smell of carnage in the afternoon. It smells like justice.

J J Pettigrew's picture



Pasadena Phil's picture

It sure didn't help that the Fed today announced that they will be making it much more expensive for the TBTF banks to continue operating in the commodities markets and will have to raise their reserves substantially. It could be argued that the Fed closed the TBTF banks' door to hedging Lehman risk in lieu of adequate reserves.

Paracelsus's picture



       Why is it that all these Banks can leverage bets 1000 to 1 but if you or I go to Vegas it is

      just cash on the table? Ever ask a Hooker for credit? One look says it all....

Hohum's picture

Bears, watch out tomorow. Could be a rally after HRC "wins" the debate.

xyzcracker's picture

Where the phuck is old phart ?

mkhs's picture

Old phart was banned.  He reappeared under different name, but decided it was useless.  Vaya con dios.