Tax Tantrum Sparks Stock Slump As Credit Crash Continues

Tyler Durden's picture

To the middle class...


Before we start, don't forget the chaos in Japan overnight...


Gold remains the biggest winner in the post-Saudi-chaos world...


The Dow's 7-day win streak is broken... Trannies were worst


Trannies are now down 6 days in a row, and all indices are red on the week...


VIX pushed higher on the Senate tax bill (topping 12), but soon enough the army of vol-selling-machines stepped in and righted the ship...


'High Tax' Companies dropped early but rebounded as details came out....


Big tumble in FANG stocks at the open but that dip was bid...


Financials continued to underperform (even with modest steepening of the curve today)...


And homebuilders rallied on the normalization of interest deduction...


As stocks catch down to credit's weakness...


High Yield Bond prices (HYG) are at 8 month lows...


VIX has started to creep higher but has further to go to fit with credit risk...



Mixed picture in bond land today with the short-end modestly bid (yields lower) and long-end the opposite... (30Y and 10Y remain lower on the week)...


The Dollar Index tumbled to its lowest since Oct 26th...


Bitcoin slid on the day... as traders rotated back to ETH as the hopes of a fork dividend fade.


Copper remains lower on the week - following hotter than expected China inflation - and gold and crude managed modest gains on the day...

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jamesmmu's picture
The Housing Crisis Isn’t Over – The Intentional Destruction of Fannie Mae and Freddie Mac

Mind the GAAP's picture

The BTFD algos are the only thing that kept this thing from being a truly interesting day.

D.r. Funk's picture

Bullshit-manipulation is the only reason the s&p broke 07-08 highs a few years ago. They've been programming the indexes for years now. Today, exactly, shows the stranglehold present, what I proclaimed so long ago as commandeered (bc it was obvious) yet everyone Laughtoutloud kept talking about a market

Farmer Joe in Brooklyn's picture

Don't forget the BTFD central banks...

Keltner Channel Surf's picture

When bored in the past on late August trading days, I used to think of possible alternates for the BTFD acronym:

Bulls Test Fed’s Determination
Bury The Freaking Daytraders
Buy To Frustrate Disbelievers
Bear Trap For Dummies
Block Tesla From Declining
Ben, Think Faber’s Depressed?
Bullies Take Fledglings’ Dollars
Breakeven Through Fancy Derivatives
Borrowing Thousands For Deployment
Bearish Trading Funds Disappear
Bogus Trades, Feel Dirty
Bears Truly Feel Deflated
Banks Throw Funds Desultorily

And my favorite:  Bungee Tethered, Feet Dangling

Keltner Channel Surf's picture

As a warning:  don’t start down this path, you won’t be able to stop, e.g.:

Channel Nuzzles Buffett Continuously
Can Never Beat Cartoons
Christ, Nix Bartiromo’s Chirping!
Consequently, Now Bloomberg’s Cool
Called Netflix Bottom (Courageously)
Cheerleading Noise Buys Commercials
Complete Ninnies Believe Cramer
Calmly Negating Bearish Convictions
Causes Numbness By Close

Implied Violins's picture

Cthulhu Network Burying Consciousness

Yeah, it is kinda like Pringles, but GMO-free.

Citizen_x's picture


An up vote for knowledge of HP Lovecraft.  His musings best describes the back office of the prop trading desk

BlueHorseShoeLovesDT's picture

Big Thanks goes out to Mark Cuban for absolutely pegging the bottom today by going on CNBS and toughting Up AMZN and NFLX.

Gotta love this “market”

It was as if he called me personally and told me to short the crap out of Vix.

Squid Viscous's picture

what a sick kike, and he's gonna run for POTUS... god help USSA

hope you crushed it blue, lather rinse repeat...

BlueHorseShoeLovesDT's picture

Bezos should just offer Trump 10 billion to resign, that motherfucker would take it in a heartbeat, he could get Pence out of there for a few million.

Squid Viscous's picture

lol... Pence would agree to a bible in every hotel room,

wait they already have that?

BlueHorseShoeLovesDT's picture

Pence would probably agree if someone would pay off his legal bills and his mortgage.

Max Damage's picture

Every single stock is swimming naked. The French cut the fuckers heads off for their theft of everyones wealth

D.r. Funk's picture

Priced for perfection was over 2 years ago
Overpriced for Destruction

SUB 11 VIX STREAK will die, after this round, once and for all
1% 3% DRAWDOWN LAPSE closer to ending, they know it
ADDITIONAL FORGED LEG closer to ending, they know it

Tolomeo's picture

Correct! Only algos... Given another hour would’ve been a green close! What a f...king joke! MFkers!!!

D.r. Funk's picture

K. Go 1 step further. There's a person inputting those algos right? Giving them permission to influence downward motion, at a colossal repetitive rate? The algos are deciding on their own? Gtfo anyone mocking talk of Tptb or speculation or exposition on the human element present behind the machinery. You fucking donkeyasses.

They are controlling it

As some of us asserted 4.5+ years ago

Because we're "not stupid" and knew what we were seeing

BlueHorseShoeLovesDT's picture

Not stupid? don’t short your self, you are the stupidest motherfucker on this site.

Keltner Channel Surf's picture

Whenever I have a bad trading week I try to 'short myself', but given I refuse to lend myself out, even to myself, nor to pay any margin fees, the trade ends up being DK'd.  (Not necessary this week, thankfully ...)

silverserfer's picture

there is plenty of 401K $ pumping into this market to rotate into. Every diptard wants growth and is fueling the dip buying. 

Keltner Channel Surf's picture

Eclectic MixTape:  Track-of-the-Day

So throw her off the bridge
Just toss her in the drink
She's coming in between us
You know the girl I mean
. . . We both know it's got to be done

Perhaps the noisiest entry in the 90s ‘twee’ category (likely because the group was American), infamous not only due to the pithy lyrics and later influence on noise-pop bands such as the Pains of Being Pure at Heart, but perhaps even more from the legendary, repetitive drum riff, an insanely quick, metallic “BAP BAP ba-BAP ba-BAP CRASH !” which I’m always inclined to play along with whenever I’ve had a caffeine overdose. 

Unfortunately, as I don’t own a drum kit, I’ve destroyed 4 ½ Black & Decker toasters, as well as the muffler from a 2009 Honda Accord LX, trying to replicate this, rubber mallet in one hand, tree-pruning shears in the other.  In the event this might have a similar effect on you, you may want to completely enclose any nearby delicate objects (Tiffany lamps, wife, children) in a quality, commercial grade bubble wrap before clicking the link below.  Consider yourself warned …

(Silver Spring, MD – 1992)

BreadnH2O's picture

Bad Arse track... Here's one for your collection ('Nother Yankee diddie)

For those days when shit gets boring and you just don't want to watch anymore...

Keltner Channel Surf's picture

Ah, short punky tracks, makes me want to dig out my early Minutemen discs from college days ...

yanetjellen's picture



GotAFriendInBen's picture




--------------------------     Al Gos 2020  -------------------------------------------------------

adolphz's picture

Thank you the day to day traders from SHEP WAVE keepso making me money. Just having a hard time swallowing themail precision in time of calls. Just seems rigged somehow. 

adolphz's picture

Thanks for votes everyone, make money 

BlueHorseShoeLovesDT's picture

Tomorrow is happy ending Friday, maybe new ATH.

It cracks me up that this “market” is all about perception and belief.

Keltner Channel Surf's picture

Could be a mean-revert counter-intuitive special:  IWM, which has a 3-day Daily base at the Channel bottom, today even licking the Weekly front-weighted 20, rebounds to the 20DMA (going against 'tax plan BAD for small-caps' meme), while SPY and COMP end about at today's lows, near the 20DMA, which hadn't been seen in a week.  Quasi-holiday volume, could go against retail trading flows in strict volatility envelope reversion we've seen for nearly a decade.

BlueHorseShoeLovesDT's picture

As always I will wait and watch and let the “market” tell me what to trade.

I don’t believe the tax bill will pass in its current form, even if it does and includes the delay on the corporate tax cut to 2019, it will be repealed or changed as soon as the democrats take control of Congress, which is most likely 2018.

ReturnOfDaMac's picture

Ahhh a dip, at last!

MuffDiver69's picture

Hehehehe...Bunch Of Republican Senators said if they don’t pass tax cuts the donors say no money and then market sees plan and takes a dump..These people prove my vote for Trump and against them was spot on..Its a show that deserves ending..

geno-econ's picture

Saudi's got it right---confiscate from the wealthy because the middle and low class can rise up to depose the Prince's and Billionairres.   Congress will not be spared for their complicity---smart ones getting out now.

Peak Finance's picture


Easy-peasy trading day for me, just rode xiv up and down

wish there were more days like this, musta been some kinda of algo screw-up

riskon.then.riskoff's picture

is there anyone who can show proof that volatility

Selling drive the stock market?

riskon.then.riskoff's picture

I think stock buying pressure drive implied volatility down...