Dow Fails To Hold 23,000 As Yield Curve Carnage Continues

Tyler Durden's picture

The Dow is now up 17% YTD - crushing bonds and bullion - NOTE everything changed when China’s central bank decided that it would remove a reserve requirement for financial institutions trading in FX forwards for clients by cutting it to zero from 20% currently..


But let's not spoil the party!

Dow 23,000...


1200 points in 27 days...


The Dow is now the most overbought in 8 months (and the past three times, the rally has stalled)...


We have never seen a divergence between VIX and The Dow this wide for this long...


Additionally, as BofA notes, the S&P 500 has only traded 1% or more in either direction 8 times so far in 2017, tied with 1965 (full year) for the third  fewest in history.

The only years with fewer moves in excess of +/-1% were 1964 (3 times) and 1963 (6 times).

For comparison the most +/-1% moves occurred during the height of the Great Depression in 1932 (181 times), and the most in recent history was during the GFC in 2008 (134 times). The above stat is yet another striking depiction of today’s historic low vol environment.

*  *  *

Anyway - moving on from all that malarkey.

Small Caps and Trannies were notably weaker today as The Dow did what it does...


VIX was very illiquid again and actually rallied along with stocks today... Dow was ramped back to 23,000 once again into the close but failed to hold it...


Small Caps stumbled notably today...(worst day in 6 weeks)


This is the widest divergence between stocks and vol since the 2015 China deval collapse...


PG&E soared after headlines about arrest in the CA wildfires BUT then dropped when clarified as a different arsonist..


NFLX was a big 'sell the news' event...


Trump Tax Reform hope has left the building...


Banks had an ugly after a hopeful pre-market earnings from MS and GS...


And finally started to rollover as the yield curve collapse continues...


Treasuries were mixed today with the long-end rallying but short-end seing yields rise further with yet more dramatic curve flattening...


The bond market bloodbathery continues to crush the dreams of the 'recovery-hypers'...


FX markets were volatile today...


With a big reversal in the dollar...


As the Peso and Loonie dumped early on NAFTA disagreements then surged after NAFTA negotiators claimed "success" in round 4...and talks will extend beyond 2017 deadline


Gold and Silver were lower today...


WTI and RBOB both gained ahead of tonight's API data (WTI barely but RBOB solid)


Finally - for good measure - 'Industrial' Production remains well below 2014 highs... but the 'Industrial' Average is soaring to new record highs...

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spastic_colon's picture

who would have thunk that a day when GS erased 40+ points from the dow that another compononent would stick save it UNH eT. Al. its almost as if it is pre-programmed / s

any bets on IBM's results today...........didnt think so.......i meant any bets on the size of the buyback announcement

D.r. Funk's picture


"almost as if




VD's picture

what 'bout the idiotcoin shillery?

D.r. Funk's picture

Indexes are programmed




if-then and for-next subroutines djia naz +vix primarily

Look at shiller pe and you'll see what the most-likely intent of that manipulation is


NoDebt's picture

Upward sloping yield curves are good for the economy.  So are flat yield curves.  And downward sloping yield curves.

- Every pundit on TV


GunnerySgtHartman's picture

Yes sir!  And profits don't matter anymore - just ask Elon Musk!

Kaiser Sousa's picture

boy, what a nail biter today watching the Fed & ESF in the last 30 minutes of “trading” pushing the Dow Jones Propaganda Index back over 23,000 after it gave it up 2 minutes after it reached that level earlier this morning & then “sideway's shuffled" all day long???

u should have seen that CNBS drunk Art Cashin sitting on set with that stupid fuckin “Dow 23,000" hat on his fucking bowling ball head…

fucking ridiculous…

meanwhile in other “market” moving news,

a new prime time network show is being launched this year...

its based on female litigants agreeing to have their cases tried and ultimately decided based on which one of the 2 is the best Twerker…

They’re calling it “Judge Booty”.


LawsofPhysics's picture

Yep, it's all about the "denominator" all those equities are priced in.

Jump you fuckers!

D.r. Funk's picture

on the bullshit 23-day

I defer to the master


spastic_colon's picture

IBM is down 15% YTD but tomorrow they will be good for 60 dow points and higherer records based on their phony earnings today.

Snaffew's picture

Art is one of the few halfway decent commentators they parade around on that shitshow.  He has to wear those stupid fucking hats as part of his contract.

Altesh's picture

Dow going parabolic, it's fucking pathetic, nothing dents the market, just up up up up. Overbought on daily, weekly, monthly and no corrections. Dotard Trump tweeting about how dow hit 23000 like he did anything after failing at obamacare, fucking up foreign relations and probably failing tax reform as well. 

D.r. Funk's picture

It's programmed





get it?

[language about nothing denting the market has been irrelevant, FOR, YEARS]

duck dodgers's picture

Funny how he doesnt think the stock market is a bubble anymore.

Solosides's picture

Have you done your part and smashed open a bankers head with a car battery out in the middle of the street today?

VWAndy's picture

 No worries right. After all Jannet Yellen has your back.

Siberian_Walrus's picture

So many charts, I bet those are charts of Awesomeness!!

I Art Laughing's picture

It's a long ways to Drinko de Mayo.

buttmusk's picture

You mean 0.1% isn’t a big enough dip for you?

jamesmmu's picture
A ‘Crazy’ Stock Market Is Punishing Sellers, Even Economics Nobel Winner Couldn’t Understand Why Stocks Keep Going Up Now

Traderone's picture

Even Economics Nobel Winner Couldn’t Understand Why Stocks Keep Going Up?

lol, Mate, you are too much. What the fuck do they know?

Arnold's picture

Not one PhD has worn lace up shoes since the early sixties.

Nobodys Home's picture

Long Dupont!
They had the guy that invented velcro on the payroll. He made next to nothing for it. The little sniveling debt serf!

Arnold's picture

You know, some days I wish I had an Ivy League Doctorate to give me an excuse for all the stuff I don't know and can't do.

Traderone's picture

I trust Art didn't pay too much for his 23K DOW hat because he'll only get to wear it for about 4 weeks or so.

FreeShitter's picture

Art will have 24, 25. 26, etc.....the transfer of wealth is still rolling, bleeding everyone  slowly is the name of the game.

Ron_Mexico's picture

sure, slowly at first and then all at once . . . .

I Art Laughing's picture

Buy stocks in trucker cap manufactury. Between these and MAGA caps it should be as good as any of the rest of this shit.

Ron_Mexico's picture

buy stocks in "virtue signaling" yard signs, too. (Sorry, the wife likes living in this liberal lily-white neighborhood, woot.)

Implied Violins's picture

He's fine. It takes exactly one second to take a felt-tip pin and put a yellow dot on the lower left of that 2.

D.r. Funk's picture

Vix intraday has been different the last two sessions. Yesterday was both out of character and odd. Today a holding pattern most of session. (stark contrast to the heavy heavy perceptible cliche inv-vol forcing) Noteworthy. Of consequence na. See if 2nd half of october provides a spike event

Keltner Channel Surf's picture

I fear the holding pattern may continue until Trump names his Fed Chair nominee.  Even the Junior Miners were relatively flat today, and it took him saying “I like them all” when asked about a current favorite candidate (As he wiped tzatziki sauce off his tie, standing next to Tsipras) for these firecrackers to even pop back to Unch.

If “we control the horizontal” is true, then I’m afraid the ‘outer limits’ may not get very far vertically, at least for a spell …

Traderone's picture

I pray you are wrong , I fear you are right. 

Keltner Channel Surf's picture

Ah, but everyone knows prayers whispered in an Irish accent get immediately bumped to the front of the queue ...

BlueHorseShoeLovesDT's picture

Trump should run teaser trailers.

On the next episode of look who is President . . .

alexcojones's picture

Zerohedge should host a Cratering Contest.

Pick the Point when Dow Craters.

25,000 is my guess. Down to 12,000

adr's picture

And to think, three months ago the November gasoline contract was trading at $1.22.

They really know how to screw everyone don't they.


c2nnib2l's picture

where is the s&p chart from 1987 ? you are here ?! ^^

GunnerySgtHartman's picture

Lookin' an awful lot like the NASDAQ from late 1999-early 2000, too!!!

Ben A Drill's picture

Declining revenue for IBM for 11 straight quarters. Everything is Awesome! 1929 blow off top already here. WWIII just weeks away. Yet no draft, no call up of our national guard. We are truly fucked. And the Government is letting this happen just like WWII.

Our government knows that terrorists are here. Las Vegas is just the starting point. Wild fires in NW California. The wind just didn't do that. Those fires were acts of terrorism.

Road construction everywhere so bottle necks in traffic so people can't escape the city's.

This is all pre planned.

Honest Sam's picture

I just saved 15% on my car insurance.

Ben A Drill's picture

I just stayed at a holiday inn.

Snaffew's picture

I just got head from another actress who i promised a starring role in a movie---blew my nut all over her face and snapped a pic.  Got to have a little something to keep 'em under control you know.

Honest John's picture

Funny you should mention car isurance.  I complained to my agent that I was getting these stupid $20 checks twice a year.  Not worth my while to take it to the bank.  I told him to give me the policy that doesn't give me this rebate for not having an accident.  My 6-month rate went down from $550 to $330!  You don't get Nuthin for Nuthin.  HONEST

D.r. Funk's picture

They had control of indexes pre-Nov 8. Nothing changed. They've solely added 5000 dow to obviously conflagrating timelines

Snaffew's picture

the "terrorists" are the CIA/NSA/FBI and all the other spook outfits being funded with taxpayer money.  The terrorists have been here for a hundred fucking years.