Stocks Stagger On Tax Turmoil As Junk Debt Dumps To New 8-Month Lows

Tyler Durden's picture

Yellen warns "valuations are at the high end of ranges" but tax cut details diss stocks.

It was all going great until I hit 310kph...

 

Ugly data from China overnight sent China bond and stock prices lower...

 

Notably Gold remains the only asset higher since the Saudi chaos...

 

All Cash Indices ended the day red but the dip-buyers rescued Dow, S&P, and Nasdaq green fro the month...

 

Futures show the crazy swings best once again... Dow (blue) almost ramped back to unch for the week...

 

VIX and USDJPy worked their magic to ramp stocks numerous times...

 

AAPL shares were down for the 4th day in a row...

 

FANG stocks fell on reports that SALT deductions would remain in the House Bill but dip-buyers came back in...

 

ROKU tumbled 13% as it appears the short squeeze is over...

 

VIX (equity protection costs) is starting to wake up a little as credit risk protection costs rise...

 

High yield bond prices fell to fresh 8 month lows...

 

As HY spreads surged once again - led by Comms...

 

Credit and Equity decoupling continues...

 

Hotter than expected PPI prompted the yield curve to flatten dramatically (2Y +1bps, 30Y -4bps)...

 

Sending the yield curve to fresh flats for the cycle - the flattest since Oct 2007...

 

The Dollar Index dropped to 3 week lows...

 

As EURUSD surged today on what Citi called "no news, no data,  no catalyst" as the algos seemed keen to lift it back to pre-ECB levels...

 

WTI Crude fell over 2% today, back below $56 on IEA demand outlook cuts...

 

Dollar weakness helped PMs today but the massive surge in volume as Gold bounced off its 200DMA was the most notable...

 

So to sum the day up... China Down, Dollar Down, Yield Curve Down, Credit Down, Stocks Down, Gold Up

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Hammer823's picture

Index losses more than cut in half per the usual scripted bid.  Just buy the indexes in the morning if they drop. Sell in the afternoon. No need to hold.  Almost 80% of the time, a morning drop is reversed by close. The same exact intraday patterns run for years by the Institutions. You can't get better odds than that anywhere. Index price action is determined before it even happens. I GUARANTEE you profits. Go find a Financial Advisor that would guarantee you a return. It's really that simple.

Keltner Channel Surf's picture

Or perhaps institutions are holdiing out the first hour, letting smaller retail orders play out, which often creates a "vacuum" down to where they want to buy (or up to sell points on rare down days), as the 20DMAs provided on most indices today (and 1.5 Keltner bottom in RUT). 

Actually hardest thing for newbie trader to learn, that quick opening moves are often vacuums from institutions NOT acting, but all waiting with orders congregated at similar locations (i.e., similar algorithms) to pounce in the 10:15 - 10:30 area, creating that giant sucking sound as prices naturally move to where the potential 'action' is, aided by poor early liquidity.

BlueHorseShoeLovesDT's picture

Most traders don’t trade the first hour, they wait to see how things shake out... or they are snoozing.

Traderone's picture

I spend the 1st hour banging Squidy's wife :-)

BlueHorseShoeLovesDT's picture

Good to see ya, Squiddy was lonely for ya.

Blue Snowflake's picture

Why would they keep buying to ATH every day though?

Keltner Channel Surf's picture

That's where the resistance is, no sense in giving up even a cent of profit, if you're a well-oiled machine.  Also there's the potential to hit a few medium-sized buy stops from weaker shorts and get a tiny bit more, likely explains why the new "ATH's" are seldom 500 points. 

Why we don't 'crash' as anticipated by dirigibles isn't so hard to understand:  major buy-side funds don't yet believe the Fed will give us a 3% 10-yr, and until they do there will be more weaker short buy stops just above highs than there will be major sell stop-losses at range lows.  The annoyingly tight ranges (at least for traders) could come from institutions selling option straddles, given the low volatility, which begets more low vol.  Everyone's been predicting the end of this 'soon', but until it comes, traders will likely profit more through several directional trades per day, rather than one big long hold.

BlueHorseShoeLovesDT's picture

Low vol environments are difficult to trade, especially in index product. Which is why I trade names when it is like this, there is alway a name with vol.

Despite what others on this site believe, we are probably going to continue in a low vol environment through at least the end of this year, there just aren’t a lot of catalysts to spike vol. I know some think vol is manipulated, but the truth is, given realized vol, it is exactly where it should be if not a bit high.

There are also a lot of seasonal inflows, which should keep the party going.

D.r. Funk's picture

Ha ha. Yeah the implications of your question answer it. Many of the regulars here are deluded. Cause the guys tracking this stuff 4 years ago gave up. And that's what's left. Of course it makes no sense that leg-after-leg of ath would unabatedly, as well as ravenously, continue to be bought, along with all the other information we know, such as (full vix suppression occurring... 3 years ago...) Massive geopolitical game underneath the indexes, control of the indexes, overextension of the indexes. Every day lol, magically we get these "suspicious" multiweek ath runs, where the intraday has 'bullshit' written all over it. Just coincidence

 

Keltner Channel Surf's picture

Historically low volume and volatility as we barely pierce new highs on most days doesn't imply 'ravenously,' which is why you always miss the key point, instead scanning for 'facts' to fit your pre-conceived conclusion, which don't exist.  Sounds more like 'deluded' to me.

However, looking at today's morning futures, it's possible you'll get the triple-digit down day you've been craving.  Well ... at least it's possible ...

D.r. Funk's picture

Overly hyper aggressive as ive said. It's a game (meaning not an actual game) and it's endgame.

Much larger picture than repetitively pavlovian normalcy

Of course...peddlers proclaim automatic profit autopilot

That's what fucking happens boys and girls

 

BlueHorseShoeLovesDT's picture

Yeah yeah yeah, and you are never wrong.

Oops I meant you are always wrong.

BTW what happen yesterday, did mommy’s TRS-80 break down?

Squid Viscous's picture

blue - leave the idiot alone, it's like feeding the squirrels, fun

but pointless,

where is tarder????

BlueHorseShoeLovesDT's picture

You have a point Squiddy, as for T1, there must be footie a foot.

BlueHorseShoeLovesDT's picture

As they say in TV get some new material man!

Louis CK can show you his tip.

BlueHorseShoeLovesDT's picture

Really?, still nothing new? I can see why you work in TV.

Keltner Channel Surf's picture

England v. Brazil or Ireland v. Denmark may have struck his fancy (though neither current score will make him particilarly pleased)

D.r. Funk's picture

Most valid truthtellers left quite awhile ago.

To be called an idiot as a truthteller at this point only validates that.

I'm the idiot. Yeah right. I'm one of the originals who hasn't given up, gone anywhere, or been vanquished monetarily, mentally or psychologically

jamesmmu's picture
John Hussman Declares Market Internals Have Deteriorated And Adopts A Negative Outlook

http://investmentwatchblog.com/john-hussman-declares-market-internals-ha...

Squid Viscous's picture

tarder one bought the dip, again

i'm sure... but still a miserable fuck.

cue the beatles " cant buy me love"

and my wife is 100 pounds of dominican/ spanish and hotter than any girl you

have ever jerked your 4 inch irish sausage off to,

you fucking prick

 

small axe's picture

PPT is going to need a lot more magic dust

D.r. Funk's picture

http://www.blogtalkradio.com/the-doug-hagmann-radio-show/2017/11/13/entr...

go in a bit

==

SUB 11 VIX STREAK vulnerable to dismantling wipeout

==

1% 3% DRAWDOWN LAPSE closer to ending, they know it

==

ADDITIONAL FORGED LEG closer to ending, they know it

==

RELENTLESS SPATE OF ' CONSECUTIVE ' ATH-CLOSES can't go 'forever'

DavidC's picture

I haven't tried to trade anything today but what a day!? Strange moves...

DavidC

BlueHorseShoeLovesDT's picture

Big thanks to CNBS half ass for driving down GE to give me a nice trade

Kaiser Sousa's picture

u gotta just laugh at these fucking Fraud Markets...as noted above 4 5 years running the same reversal beginning in the 10-11 am. time frame on Scum St. and goin into the close on ThreadNeedle St. in the EuroPeon capital of fraud...

mother fuckers can have u witness a triple digit loss on the Dow Jones Propganda Index now can they????

DEATH TO THE MONEYCHANGERS.

D.r. Funk's picture

Keeping everyone playing. Keeping the illusion active. Until they dont

Clock Crasher's picture

Is Gold 5,000 per ounce yet?  Let me check.  Awww man.  Well... maybe tomorrow.  

Kaiser Sousa's picture

what u meant to ask was "can i buy a 1 ounce $50 face value Gold Eagle with a $50 Federal Reserve note yet - can I???" 

Awww man Well...Maybe never...

"Wise men speak because they have something to say. Fools because they have to say something.”

Keltner Channel Surf's picture

CONSPIRACY # 23-a

Cars have been seen queuing up at fast food drive-thru’s, principally between 11:38 a.m. and 1:22 p.m.

THERE CAN BE ONLY ONE CONCLUSION:  a ‘Master Overlord’ entity is beckoning our citizens, invisible Pied Piper style, to assemble at key locations mid-day -- but why ??    

Anecdotal evidence (many report an unwelcome sluggish [though mildly euphoric] feeling mid-afternoon, shortly after ingesting a Quadruple Whopper [with cheese] or Rally’s ‘Pagan Delight’ sandwich) suggests the most likely explanation is:

Opioid Distribution Network – nefarious pharmas could be partnering with restaurants to supply tainted food that addicts and enslaves.  (How else to explain the popularity of that cardboard-flavored polymer known as the “Frosty”?)

After 200+ visits to locations in a 10-mile radius, gathering data via hidden recording devices, then tossing the food into a nearby pond to avoid ill effects (apologies to local naturalists for the erratic duck behavior), here is my key finding:

The “Ketchup” Packet Anomaly:
These rectangular packages, containing a pleasantly sweet/sour (albeit opiate-laced) sauce, may be concentrated doses designed for addicts with a tolerance to milder levels in salads.  The evidence:

1) Distribution: Clerks provide comically large handfuls, wholly out of proportion to the number of entrées, but ONLY when certain items are ordered (never w/ salads).
2) Usage:  Patrons rarely ‘use’ more than 1 or 2, but also NEVER throw extras away, instead stuffing them in a dense wad into the ‘Auxiliary Input’ section of their auto’s center console (formerly known as the ‘ash tray’), reportedly “for a rainy day.”  As all recovering addicts know, needing to keep the devil nearby simply means you haven’t fully recovered.
3) “Do you want fries with that?” :  Analysis of 12 dozen audio tapes revealed this word combination to b associated with high ‘ketchup’-to-entrée ratios and, therefore, can be considered a code phrase, translated as “Do you need a higher dose?”

If these fiends aren’t stopped, they may be emboldened to alter the classic radio jingles, e.g.:

You deserve a fix today, so get up and get your ass
to McDonald’s

Squid Viscous's picture

let some 30 yr old jew run it like burger king,

$6 for two woppers (WOP-ers. get it?)

but you have to beg for some ketchup....napkins, etc.

it's like Aushwitz all over again...

i'm fuckin dying here!!

 

 

Rainman's picture

A yield curve this flat in Oct. 2007 sent Bear Stearns to the graveyard 4 months later ... just sayin

Clock Crasher's picture

they will be off set with derivatives.  take a look at Office of the Comprtoller of the Currency 2017 data reports.  100 Trillion or so of interest rate swaps.  

Squid Viscous's picture

where is tarder one?

adolphz's picture

What is fang stocks

Why zerohedge.com not able to you prediction 

 

it still Shepwave who says moves before they happen.

Arnold's picture

Engrish is not my first language either.

adolphz's picture

Thnx

 

Still trying to figure out Shepwave position for longer trend. Good in day trades but want to clear investmentioned better

 

 DAY UPDATE FOR TUESDAY PUBLISHED:

You can't make this stuff up!

Note that the revised short term trend/trigger lines for the short term aggressive SPY /SPX view has worked out perfectly. See where the low was today in the SPY--after the short term aggressive sell signal.  That line provided an excellent short term aggressive buying opportunity--as anticipated.  NOTE that we could be seeing another reversal signal later.

Read all of the new notes of today.  There is an important new note in the 60 min Dow Industrials chart regarding a short--to--mid term (Swing 

XBroker1's picture

Took me 3 tries to spell regemine correctly.

ReturnOfDaMac's picture

FANG and SALT, what kind of game is this?

lester1's picture

Does anyone doubt that the unaudited Federal Reserve is not buying stocks?