Despite Late Panic-Bid, Stocks Slump Most In 4 Months Amid Currency Chaos

Tyler Durden's picture

January was a tough month for some...

 

The S&P 500 just posted its least volatile January in at least 55 years. Avg high-low intraday range of 0.55%, smallest since at least 1961 (@CallieBost)

January was good for gold again - the 4th positive January in a row for Gold (and 8th positive January in the last 11 years)

 

The Dow managed to cling to gains for the month (the first positive January for The Dow since 2013)...

The last two days have seen the biggest drop in The Dow since September 26th.

The panic bid in Small Caps saved them from 4th January in a row of losses...

 

All thanks to yet another short-squeeze...

 

Dow 20k seems like a long way away again now...

 

VIX was once again the ramp-igniting ammo...

 

All of which is interesting given that the Presidential cycle signals Feb as a big loser...

 

Energy stocks were January's biggest losers, banks broke-even, and tech led the way but faded most in the last 3 days...

 

Breadth remains ugly...

 

Notably S&P bank stocks underperformed Russell today... (As Bloomberg notes - blame The REITs)

 

As Bloomberg's Michael Regan noted earlier, it's tempting to blame Trump's latest statements for everything going on in the markets, but some big-name earnings make it obvious that equities would have struggled even if the President had taken today off. UPS showed the risk from the surging dollar last quarter and spoke of "continued softness in industrial production," while Exxon Mobil's $2 billion writedown shows that all the shoes from the oil bear market have yet to drop. Then there is Under Armour and Harley Davidson, which may not be sending any macro signals but are ugly stories regardless. About two-fifths of the way into the earnings season, the rate at which S&P 500 companies are beating estimates has slowed to 2.7% and the growth rate is 4%. A blockbuster earnings season may have helped the market look past the volatility in the White House, but at the moment it's not providing enough of a distraction.

Under Armor is probably the best example today...catching down to reality...

 

And the analysts nailed it...

 

"Most Shorted" Stocks are down 4 days in a row for a drop of over 5% - the worst since Brexit...

 

Does that mean it's time for a short squeeze?

 

After yesterday's brief MSFT issuance interruption, Treasuries resumed their rally, moving yields lower on the month (only 2Y remains very marginally higher in yield on the month)...

January closes at a record high of $227.45b in investment grade bond sales in at least three years - which likley explains the 3 big spikes in yields as rate-locks were piled on.

 

 

The Dollar index tumbled almost 3% in January - the worst month since March 2016... led by AUD and JPY strength...

The dollar index has erased the post-ECB and post-Fed gains.

The dollar demise appears to be following last year's analog rather well...

 

Today's double whammy on the Dollar as Navarro and Trump commented on currency manipulators. NOTE - as we pointed out perviously, the dump'n'pump pattern continues in the dollar...

 

As The Dollar tumbled, so Bitcoin broke out in China...

 

And January was the strongest for the Yuan since September 2010...

 

January was the worst month for US Macro Surprises since September.

 

Crude continues to oscillate around $53 as Copper has rallied...

 

Gold closed the month above $1200 (and Silver above $17.50)...

 

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Kirk2NCC1701's picture

That's right, FUCK THE ALGOS!

How's AI gonna handle Chaos theory and Game of Thrones theory?

SILVERGEDDON's picture

When does the Dragon Queen unleash the fire belching toothie ones to eat Goldman, JP Morgan, Citi, Chase, the Fed, et fucking cetera ?

Inquiring minds need to know.  

spastic_colon's picture

"Does that mean it's time for a short squeeze?"

 

100% yes..........dont forget the fed needed some VIX room for tomorrow.....they're still in charge.

BlueHorseShoeLovesDT's picture

They do it every day. Trump said the stawk "market" shouldn't go down, and Janet doesn't want to get fired.

HRH Feant's picture
HRH Feant (not verified) SILVERGEDDON Jan 31, 2017 6:09 PM

When does Trump order an audit of Fort Knox and a return to the gold standard? He could tell the US Treasury to print one $20 Trillion dollar coin, too.

LawsofPhysics's picture

LOL, better check your underarmor, someone took a huuuggge dump in them...

AlexCharting's picture

Money is all make-believe. 

SILVERGEDDON's picture

Another Kaiser Sousa reported Obama market butt fuck moment for the common investor. Yay. 

BlueHorseShoeLovesDT's picture

Back at Dow 20,000 for Donald's Mar-a-Lago weekend!

Kaiser Sousa's picture

recall yesterdays “trading” which saw a stick save of the fucking Dow Jones Propaganda Index, S&Piss, and Nascrap in the 2 hours by the Fed & ESF of course to push it considerably off the lows preventing a 1% plus loss for the day…

well, what did we witness again today???? take a wild guess - i double dutch dare u…
bingo!!! the same fraudulent fucking pattern just like yesterday where "investors” after dumping those worthless DJPI components suddenly had a change in "sentiment” and began stampeding into the following “stawks” to once again avoid the dreaded 1% loss ON ABSOLUTELY NO POSITIVE MACRO - ECONOMIC NEWS OR DATA WHATSOFUCKING EVER….

 - Proctor & Gamble ( I’m sorry - wasn’t there some not so positive news regarding pharma’’s ????)

- Merck (I’m sorry - wasn’t there some not so positive news regarding pharma’s ????)
 
 - Pfizer (I’m sorry - wasn’t there some not so positive news regarding pharma’s ????)

 - Coca Cola (get the fuck outta here with that bullshit…)

don’t u all feel better and richer now…fucking pathetic…
and lastly, the blonde bitch on CNBS actually had the fucking nerve to say it was Khazar Sachs that was stemming the losses in the DJPI going into the close despite the fact it was down 4%???? now thats entertainment…
 
DEATH TO THE FUCKING MONEYCHANGERS.

Squid Viscous's picture

Stick save! and a beauty! as the Rangers TV guy used to say way back when...mid 70's?

 

don't look now but the SPooz are green LOL!!!!

LawsofPhysics's picture

Priceless.  Funny how all the MSM websites no longer allow comments...

dude duderson's picture

that was the only "real news" on the sites lol

spastic_colon's picture

totally.....the tide was turning on alot of the comment boards.....so what does a media company, who touts the 1st amendment, do when faced with a changing narrative towards truth and honesty..........well censor the truthiness of course!

Hohum's picture

Dow 20K a long, long way away?  How about tomorrow?

Fundies's picture

Gene Wilder was always long stocks.

natronic's picture

Wake me up when VIX hits 24.

BlueHorseShoeLovesDT's picture

Wake me up when the Vix hits zero.

Squid Viscous's picture

wake me up when they have to reverse split UVXY and TVIX again.

i like short naps,

Soul Glow's picture

I'm sure Aapl's earnings will save Trump from a stock dump continuing.....

Squid Viscous's picture

when do they report 5? because they're prancing gay left coast fags?  and that's how they roll?

falak pema's picture

Don't fuck the algos they are Hayekian Amerika!!!

The road to serfdom is paved with HFT algos, for and of and by the Oligarchy of monopoly capitalism...of course not TRUE capitalism...whatever that means... as since Thomas More and his Utopia, we search for that rare bird !

Fundies's picture

The more times we rub over DOW 20K... the better it feels...just like a massive G spot.

BlueHorseShoeLovesDT's picture

Unfortunately it is Janet's G-Spot

BigFatUglyBubble's picture

Shouldn't talking down the dollar index make the market go up?

adr's picture

About 30% of whats left of Sporting Goods retail is filled with Under Armour product. Nike makes up 50% and the remaining 20% is the other brands.

If Under Armour shits the bed, what does that say about the retail landscape?

Does anyone really think people are buying this crap?

Bam_Man's picture

Apparently, morbidly obese diabetics are not big consumers of "Athletic Wear".

Who could have known?

Squid Viscous's picture

need an underarmour body bag line, stretch to fit

 

might be a big hit with local PD's

SubjectivObject's picture

I never heard of the stuff before today.

Jockey, or nothing, FTW.

thismarketisrigged's picture

they dont even care anymore to hide it, every fucking day, same fucking shit, sticksave at end.

 

how many fucking times has the nasdaq come back from down nearly 1 pct to green in a day?

 

basically every fucking day

SubjectivObject's picture

Your moniker suggests you're biased to see things that way.

King Tut's picture
King Tut (not verified) SubjectivObject Jan 31, 2017 5:30 PM

He sees things as they actually are

BlueHorseShoeLovesDT's picture

Meet the new boss same as the old boss

Squid Viscous's picture

i just got tarderone to invest in my new quant fund.

we buy SPX and Q calls on the AM lows every day ... and then buy more in the mid PM and then some more around 3:30 ...

so far we're up 137%... boo ya! 

 

BlueHorseShoeLovesDT's picture

Apple will be starting their US factory really soon.

It will take until Trump is impeached or 4 years to complete, whichever comes first.

AlbertthePudding's picture

Either the money changers are taking a dump or simply holding off on their usual late trading to hold up the market.

Whatever - it is rigged. Trump may need a while to fix this little baby.

onwisconsinbadger's picture

But Conway said I should by stawks. Sad !

Squid Viscous's picture

Tales from the Crypt Conway?

she'll be the death of your portfolio

sinbad2's picture

The gold price has been fluctuating between 10 and 50 dollars an ounce more at the Shanhai exchange than the price set by New York and London exchanges. It seems the old boys network is being upset by free trade.