Liquidity Suddenly Collapses As Stocks Tumble

Tyler Durden's picture

This is the biggest drop for Bank stocks since Brexit, as investor concerns over Trump's reform agenda grow...


And, as Nanex points out, S&P 500 futures liquidity is collapsing today.


Why? Because whereas the BTFDers have been willing to jump in and, well, BTFD, on days where there is a sharp move lower, both the HFTs and the carbon-based traders step aside and pull their bids, unsure if this is "the start" of the selloff.  Maybe this time they are right, as the bank bloodbath continues:

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So Close's picture

Super highway on the way in.  Goat path on the way out.

Looney's picture


Liquidity Suddenly Collapses

S&P’s water just broke! Oh, boy, she’s already crowning!  ;-)


MagicHandPuppet's picture

Buy the MF dip, debt SLAVES!

GUS100CORRINA's picture

If a TRUE bank stock correction is underway, XLF fair value of 18-19 is a real possibility.

Today, XLF is trading at 24. You do the math.

Over the last 5 years I have looked at these numbers with amazement. We need a REAL ECONOMY backed up by REAL NUMBERS produced by REAL COMPANY EARNINGS led by REAL BUSINESS LEADERS!!!!

Up to this point, it is all FAKE, FAKE, FAKE and FAKE!!!

Obama has really HURT America and President TRUMP knows it!!


BaBaBouy's picture

Add... AND Owning REAL GOLD ...

American Psycho's picture

They just did a CNTL+ALT+DELETE with the Algos.  Liquidty to commence shortly. 

Ghost of PartysOver's picture

This is all about Obamacare Repeal and Replace.  Failure to get that done will have Trump struggling to get Tax Reform.  Market was bid up on the idea of Tax Reform.  No Tax Reform then it could get seriously ugly.   If a good Repeal and Replace comes thru in the next 30 days (completed bill, including Senate) then look for a rally.  Just my thoughts.

Scuba Steve's picture


And if No Oblamacare reform and No Tax reform from the GOP ... Trump is right, heads will roll in the next congressional election. Mark it down.

Tax paying, pension receiving People are Pissed Off

Son of Loki's picture

8 years of Obamanomics failures is coming home to roost. Hundreds of store closings, mall bankruptcies, soaring joblessness, massivve FSA, and so on.

Taxpaying hard working Americans broke donkeys.

Trump needs to immediately give the middle class and old geezers a tax break so they can go out and spend a little. Try to reverse some of the damge from 16 years of Bush-bin Bama (and fed) domestic failures for the middle class worker.

With 98 million out of the labor force it's amazing the entire economy does not collapse!

JRobby's picture

"But the banks are stronger than they have ever been at any time in history?????"

"Efficient hedging strategies, not profit strategies enable them to weather the most severe storms!"

OK, time for your Haldol injection, don't fight us on this anymore.................


Arnold's picture

Narcan for Hopium over dose.

TheRideNeverEnds's picture

Eh, the COMP made new all time highs today so there is that.

2ndamendment's picture

The Swiss National Bank must have finally stopped buying Apple stock. 

JRobby's picture

The red iPhone just came out with some other absurdly high priced devices also!!!!!!!!

CPL's picture

Sorry everyone is broke, no one can afford to help you.

CPL's picture

Tithes are always paid in blood, body, spirit or pain.  I thought you guys knew that.  Seems to be the main thing about all the abrahamic reliigous nutters, seems only reasonable to honour the wish.  Because that's what it is.  A wish.  And like a monkey's paw, the wish is always given but the mechanism it's delivered usually borders on the macabre and ruthless.

Point being, always be careful of what you wish for.  You just might get it.

MarsInScorpio's picture


You wrote: "Tithes are always paid in blood, body, spirit or pain.  I thought you guys knew that.  Seems to be the main thing about all the abrahamic reliigous nutters . . ."

Your use of the word shows you don't even know what a tithe is. How do you pay your "first fruits" with "blood, body, spirit or pain"?

Ignorant ass. E S & D.

asteroids's picture

You got your notice at the close yesterday when that exchange went offline. A couple of red days, and then the margin calls will begin. That should be fun.

ParkAveFlasher's picture

Mr. Yellen, get to work!

cowdiddly's picture

She did, This is exacly what the fed wants, to drain all this slosh out of this stock bubble.

Create a bubble and then bust it has been their Modus Operandi for my entire life.

Consuelo's picture



Downshifting into a corner can be dangerous in the hands of an inexperienced driver.  

Scuba Steve's picture

But Thats what Senna said ...

Bryan's picture

"Create a bubble and then bust it has been their Modus Operandi for my entire life."

Exactly.  And it illustrates that they really do not have control over the economy/markets as they like to believe.  You don't just print money or diddle the interest rates and make everything all better.

Cognitive Dissonance's picture

Zero to sixty to zero to sixty etc. That's all they can do.

Unfortunately everyone else gets car sick.

cowdiddly's picture

Well you can tell yourself that the feds don't control the markets. I just don't ascribe to that line of thought. They control ALL the markets. IMHO

But, They don't know what they are doing is a given.

Bryan's picture

Yup, that's what I meant. 

NoDebt's picture

1%!?!?!?  I feel a little... light... headed........ <THUMP!>


R-Squared's picture

V-shaped recovery right around the corner. I can assure you of that.

DoctOZ's picture

Just like you called this short term sell off huh?



R-Squared's picture

Not sure what you're referring to.

spastic_colon's picture

the buyback arb is dwindling quickly; liquidity provided by corps will dry up fast.

E.F. Mutton's picture

I heard that the Grey Poupon guy just hung himself.  Not a good sign.

Consuelo's picture



The two Rolls-Royce commercial guy...?   Say it ain't so...

fishwharf's picture

That reminds me of the scene in Blazing Saddles where the black sheriff rides into town and someone says "we heard you was hung."  The sheriff answered "they was right."

PopTheBear's picture


101 years and counting's picture

no need.  just "break" the markets for a few hours and we'll be green by close.  yippee.

Bryan's picture

Zzzz... wake me up when the S&P is under 2000.  Then we can talk about 'bear markets'.

therover's picture

Nothing a good war can't fix. No worries.

mtndds's picture

PFFFTT!!, its all TRANSITORY.  Am I right Janet Yellen?

jamesmmu's picture

stocks selloff without any big news, lol, they really want to impeach trump so bad.

syzygysus's picture

Wake me up at DJIA 6,666.

NAV's picture

Carl’s Jr. headquarters is leaving California, getting big tax breaks to settle in Tennessee. According to Breitbart, they are the latest of some 9000 other companies “that have expanded elsewhere or pulled up stakes altogether (in California) since 2008.” CKE restaurants is a corporate parent of Hardees and Carl’s Jr. restaurants.

Cutter's picture

Unbelievable. Putin will stop at nothing.

Savyindallas's picture

Putin was trying to help Trump by propping up the market. It didn't work, so now he may tank the market to teach us a lesson. Don't mess with Vlad-he's very powerful.  If he really gets pissed, he'll release the Russian intelligence files on 911 and order Trump to announce an independent investigation. He's already ordered Tillerson to skip the Nato defense minister meeting in Brussells and has summoned Tillerson to Moscow the following week. 

DoctOZ's picture

Now watch all the experts on ZH will think that Markets will crash. Clueless!

DoctOZ's picture

Wow more empty headed excuses for market action. Only one analyst has been catching market action and the PROVE IT. 

This is a classic today

Only analysts I know of who prove their calls with time stamped charts.


But honestly I still get a kick out of all the people who keep thinking they know what is going on. Laughing all the way to my bank. 

gm_general's picture

Grandma Dynamite (AKA Jolting Janet) finally blew up!