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Biggest Dow Drop In 3 Months

Tyler Durden's picture


As Apple goes sour (-5% from yesterday's highs) and financials flounder (MS -7% this week), the Dow is suffering its largest single-day loss in 3 months (which is relatively stunning given that it is -150pts or only just over 1% on the day). Under the surface though weakness is considerable across asset classes and sectors (as Materials, Financials, and Energy are the laggards).

The Dow is at 2 week lows around 12800 and we note 12678 is both the 50DMA as well as uptrend support from the October lows.

Chart: Bloomberg


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Tue, 03/06/2012 - 11:16 | 2227940 redpill
redpill's picture

Just a little pre-appetizer amuse-bouche, mes amis.

Tue, 03/06/2012 - 11:25 | 2227961 TruthInSunshine
TruthInSunshine's picture

Just wait until IBM's Watson hears about this.

Mother of all flash crashes, bitchez.

The Bernank's mother always said that "life is like a bathtub full of bubbles; you never know when they're going to pop."

30x, 60x, 90x, 131x leverage, with much of the leverage clustered around the favorites of The Hedge Fund Brain Trust Hotel...what could possibly go wrong?

It's all good....

Tue, 03/06/2012 - 11:27 | 2228031 HarryM
HarryM's picture

Say the folllowing in your best Schwarzerneggar accent - " Get DOWN you dirty Stock Market"

Tue, 03/06/2012 - 11:34 | 2228085 a growing concern
a growing concern's picture

Geet to zee chopp-ah!

Tue, 03/06/2012 - 11:38 | 2228116 Manthong
Manthong's picture

Geezus H...

Who could have seen this coming?

Tue, 03/06/2012 - 12:13 | 2228287 TruthInSunshine
TruthInSunshine's picture

Are you guys claiming that CMG (burrito place), LULU (yoga place), PCLN (travel place), LNKD, QLIK, YELP or the illustrious CRM ( has a mere P/E of 6000 or so) aren't the new Winners of the New World?


WTF! It's different this time! BRICs!!! The Bernank Put! Synergies!

Tue, 03/06/2012 - 12:30 | 2228403 Fukushima Sam
Fukushima Sam's picture

I would bet the Bernank is slobbering all over himself by now...

Tue, 03/06/2012 - 12:41 | 2228456 nope-1004
nope-1004's picture

Government sponsored ponzi pimps are taking it on the chin today.  MS down 7%.  The ponzi is imploding.

Don't say MDB didn't warn us.


Tue, 03/06/2012 - 12:11 | 2228297 optimator
optimator's picture

Natan Yahoo.

Tue, 03/06/2012 - 11:29 | 2228055 resurger
resurger's picture

Black Monday , it took about 3 days to vaporize the entire market..


Tue, 03/06/2012 - 11:17 | 2227950 GeneMarchbanks
GeneMarchbanks's picture

Dis-inflationary bust up is on schedule...

Tue, 03/06/2012 - 11:43 | 2228151 redpill
redpill's picture

Market sez, get QEasy or we get cranky!

Tue, 03/06/2012 - 11:34 | 2228091 tradebot
tradebot's picture

What's wrong with hard work?  I made mistakes...started over more than once...your article is a can keep the rich vacation snobs, but I did work for what I have...and you could do it too...That is, if you weren't so angry and jealous.

Tue, 03/06/2012 - 11:47 | 2228171 writingsonthewall
writingsonthewall's picture

So you think that by repeating the same bullshit the article points out is bullshit is somehow a defence?


What a joker - clearly you didn't earn your money on 'intellectual ability'


Like most lazy people your first defence is to state how hard you work. Most hard working people don't bother.

I'd love to know your idea of 'hard work' - care to share your regular hours and explain what it is you do to earn it?

..then I'll compare it to REAL work.


I don't work hard and I'm loaded - best be honest about this. In fact I used to work hard (when I had shit jobs) - but then I found 'success' wasn't based on ability or hard work - but how much BULLSHIT you can expunge at an interview.


...ever since then I have been paid vast sums of money for doing fuck all.


This is why society is fucked - because we promoted all the bullshitting useless turd fuckers to the top - and worse - they actually think they deserved it!


Hence the reason why Dimon is STILL in charge of JPM - even though he's been here before!

Only idiots make the same mistake twice.

Only Dimon was at BOTH meetings - and still he's in a job.

Tue, 03/06/2012 - 12:01 | 2228225 Chappy
Chappy's picture

Based on your inability to spell 'defense' intellectual abilties are not your forte either.

Tue, 03/06/2012 - 12:11 | 2228295 GoldbugVariation
GoldbugVariation's picture

It's you who can't spell 'defence', old chap.  And 'abilities', while we're at it.

Tue, 03/06/2012 - 12:17 | 2228328 writingsonthewall
writingsonthewall's picture

You fucking dick - I'm from England, it's spelt DEFENCE.


Don't forget we INVENTED that language you bastardised to make it easier for dullards to understand.


You are the epitomy of what I am talking about - putting your arrogance and confidence ahead of reason and logic.


Believe in Jesus much too?


P.s. I'm assuming 'abilities' is a typo - but tell me - what are red, blue and yellow?


(apologies to my American friends who CAN spell)

Tue, 03/06/2012 - 12:34 | 2228424 Chief KnocAHoma
Chief KnocAHoma's picture

STFU you limmie bastard!

Tue, 03/06/2012 - 13:04 | 2228572 SilverRhino
SilverRhino's picture

+1 ... good show chap. 

Actually the really GOOD way to fuck with an Englishman is to pretend you don't know where he's from. 

England?  Where the fuck is THAT?  :-)

Tue, 03/06/2012 - 13:06 | 2228579 SilverRhino
SilverRhino's picture

+1 ... good show chap. 

Actually the really GOOD way to fuck with an Englishman is to pretend you don't know where he's from. 

England?  Where the fuck is THAT?  :-)

Mon, 03/12/2012 - 23:07 | 2249467 Silver Bug
Silver Bug's picture

Wow that was a big drop


Charms and beads

Tue, 03/06/2012 - 13:09 | 2228591 323
323's picture

Right, because spelling is the peak of intellect.

Tue, 03/06/2012 - 11:35 | 2228098 writingsonthewall
writingsonthewall's picture

Oh look - I got 4 markdowns.


Clearly the 'rich' and their fawners don't like to have their bullshit exposed!


I suggest WORKING FOR A LIVING instead of gambling for one - it's much more rewarding (of course not all rewards are monetary - capitalist fools)


I'm setting up a new business - it's called "rich wankers Gulags" - and I'm going to be doing a roaring trade soon...

Tue, 03/06/2012 - 17:16 | 2229824 JPM Hater001
JPM Hater001's picture

You guys need to play nice.

Come on bitchez...hug it out.

Tue, 03/06/2012 - 12:01 | 2228236 GeorgeHayduke
GeorgeHayduke's picture

That was a good article. Of course, you'll never get the willing slaves to understand what they are saying in the article. They are so caught in the system they cannot see beyond it.

Of course hard work is how every wealthy person got there. It never had anything to do with getting pulled out of the right crotch, being in the right place at the right time, or feeling comfortable screwing people over so you can advance. Nope, just pure, hard work.

Tue, 03/06/2012 - 12:16 | 2228322 tradebot
tradebot's picture designing widgets and paying someone to mass produce, then selling them to willing buyers is screwing someone?  No one is more enslaved than those who wait for a handout...and then moan about those that work hard and stand guard on the assets they aquire.  Being in the right place is, first key in the door and the last one to leave everyday.  Of course, there is my trusty bullwhip to use on the help.  Don't know why they keep showing up...must be the paycheck, but I dunno.

Tue, 03/06/2012 - 12:21 | 2228351 writingsonthewall
writingsonthewall's picture

Did you pay those workers the value they added?

Unless you didn't make a profit - then it is they who you exploited.

You may argue (as I suspect your simple brain will tell you) - that 'nobody forced them to work' which I say, well nobody forces anyone to eat, drink or need shelter - oh except for the laws on property which means man can no longer live without dependence on the wealthy.

The 'free market' only works when there is an alternative - the alternative to working for someone else is to provide for yourself.


However, this is NOT possible - well not since the US gave out plots of land to 'first come first served' - a very, very long time ago.


Do that '2 acres and a mule' thing EVERY YEAR - and you might just be approaching a free market.


Tue, 03/06/2012 - 13:54 | 2228749 tradebot
tradebot's picture

Nah...the hired hands didn't design anything...I did...if I get paid big bucks from now on...that's the way it should be...or at least as long as the widget I designed works.  You just want a's not fair is it???  get a job...come over and I'll train you to sweep the floor or something...bring your sister.

Tue, 03/06/2012 - 11:18 | 2227953 rosiescenario
rosiescenario's picture the algo's managing the HFTs drive everything in lock step.....

Tue, 03/06/2012 - 11:20 | 2227958 Cognitive Dissonance
Cognitive Dissonance's picture

How sick has it become that I am cheering on the sell off?

While I don't wish to see the bottom fall out simply because of the suffering that comes with it, I can see no other path forward if we truly want to see a cleansing.

Of course.....this means war is on the docket.

Tue, 03/06/2012 - 11:23 | 2227992 GeneMarchbanks
GeneMarchbanks's picture

At least you're only 'cheering'. I've been praying for an unprecedented natural disaster for months now since that seems the only way to bring out some humanity among Westerners...

Tue, 03/06/2012 - 11:28 | 2228046 Hugo Chavez
Hugo Chavez's picture


These are exciting times. I love volatility on someone elses continent.

Tue, 03/06/2012 - 11:28 | 2228047 resurger
resurger's picture

dont feel pitty for anyone who contributed to this massive ponzi...

I have been waiting since October 2011 & it's not yet a confirmed sell off yet

Tue, 03/06/2012 - 11:27 | 2228029 Wakanda
Wakanda's picture

Cheering for a sell off is a cheer for returning to honest money, honest commerce, and polite relationships between nations.

Sounds healthy to me.

Bring it on...

Tue, 03/06/2012 - 11:30 | 2228059 AN0NYM0US
AN0NYM0US's picture

It would be sick not to cheer a sell off, sadly it likely won't amount to much e.g. my 10k party hat contiues to gather dust

Tue, 03/06/2012 - 11:47 | 2228170 Dr. Gonzo
Dr. Gonzo's picture

Probably just a head fake and excuse to beat down gold. It will be back over 13k soon enough but gold won't follow. That seems to be the theme of the computers running this game anyways. Markets like to be irrational. Plus this isn't really even a market. It's a computer program.

Tue, 03/06/2012 - 11:51 | 2228192 Cognitive Dissonance
Cognitive Dissonance's picture

So..........the only winning move is not to play at all?

Tue, 03/06/2012 - 12:11 | 2228296 gaoptimize
gaoptimize's picture

PPT will be back from lunch around noon.  I don't expect the declines to continue in the afternoon.

Tue, 03/06/2012 - 13:22 | 2228639 gaoptimize
gaoptimize's picture

On second thought, I'd rather be in Philadelphia .

Tue, 03/06/2012 - 11:53 | 2228200 writingsonthewall
writingsonthewall's picture

I totally agree - it's painful watching the goons of finance and politics just 'getting away with it by the skin of their teeth' everytime they look like time has caught them up.


This is why patience is a virtue - it will come, I know it will come, I just cannot say when.


Why is 'when' so hard? - well because nobody can actually measure human stupidity / hopelessness / desperation and fear accurately enough to predict when it will all run out.


I mean the world is getting poorer by the day - but it seems only the 'mathematicians' are aware of this.


The rest are buying the 'inflation doesn't matter' argument.

Tue, 03/06/2012 - 11:19 | 2227968 Scroto Gaggins
Scroto Gaggins's picture

Why do the American people keep looking at our politicians to "fix" the economy?  Our economy is like a car with 4 passengers.  The 4 passengers are 'politicians', the driver is THE FED!!!  The politicians only make suggestions to the driver (taxes, tarriffs, regulations, etc), the driver "the Fed" CONTROLS ALL.  The Fed controls every fascit of our monetary policy NOT our puppet politicians. 

RON PAUL is the ONLY candidate talking about this. 


Tue, 03/06/2012 - 11:23 | 2227998 SilverRhino
SilverRhino's picture

Good analogy.  We might take a small hit from changing the drivers (stopping the car, shooting the driver and dumping his body), but long term that car runs further and faster with only 3 passengers instead of 4.


Tue, 03/06/2012 - 11:21 | 2227980 Hugo Chavez
Hugo Chavez's picture

I am tempted to take a ride on Tyler's widowmaker, TVIX.

Is there a 3X bear VIX out there? Feeling lucky today.

Tue, 03/06/2012 - 12:34 | 2228420 pazmaker
pazmaker's picture


Tue, 03/06/2012 - 11:22 | 2227986 Comay Mierda
Comay Mierda's picture

back up the truck on VXX, VXZ, TVIX

Tue, 03/06/2012 - 11:25 | 2228012 resurger
resurger's picture

i was heavy loaded since last week...

Tue, 03/06/2012 - 11:31 | 2228068 Hugo Chavez
Hugo Chavez's picture

Tell us at the time you actually buy and maybe someone will believe you. Besides if uou really have a hot hand you should share with your ZH buds ahead of time.

Tue, 03/06/2012 - 11:40 | 2228127 HyperLazy
HyperLazy's picture

I did a couple weeks ago when TVIX was @ 14. I have been flipping it like a evil realtor ever since. Looks like I missed the spike on UVXY before I woke up... I wanna unload it before my nutz get crushed in the reverse split. C'mon /ES just drop another 2.75 and I will luv u 4eva.

Tue, 03/06/2012 - 11:54 | 2228206 Awakened Sheeple
Awakened Sheeple's picture

I'm holding until Thursday at least... Could hit a home run with it if the psi fails.

I gotta say, the 2x VIX etfs are fun to play when the "market" gets antsy.

Tue, 03/06/2012 - 12:10 | 2228290 HyperLazy
HyperLazy's picture

Ya know, that's an interesting notion. Maybe I will hold the UVXY, TVIX combo I got goin on. See what comes rolling down the ponzi mountain.

All I been doing is selling into the spikes, wait a while then repickup my position. Easier than juggling TZA v TNA.

I wouldn't mind pulling some cash out tho - I need a new hacksaw. The one I got is 60 years old and a tad twisted.

Tue, 03/06/2012 - 13:02 | 2228560 Awakened Sheeple
Awakened Sheeple's picture

I've been doing the same. Up 30% in a month. But as we get closer to D-day, might as well see if we can can hit it big.

Nice job calling the bottom in the VIX.

Tue, 03/06/2012 - 11:40 | 2228129 resurger
resurger's picture

First of all am a bear, so i always load on those stuff when the sheeple are happy making money (i go out of the money for long periods)

you dont go and buy all at the same time you stack them up.

so i have been stacking on different prices

on 27.80


and on 24 and 23

you dont buy all at once, be patient

& dont worry am sure most ZHers have the stock!

am short CVX today since the WTI is diverging from the price of the stock

CVX= 108.X

WTI= 105

trade at your own risk, good luck


Tue, 03/06/2012 - 11:30 | 2228061 tallen
tallen's picture

I loaded up on Thursday. Also you should stay away from TVIX as its trading at a heafty premium to the NAV. If you want a 2x, buy UVXY.

Tue, 03/06/2012 - 11:35 | 2228095 resurger
resurger's picture

Yup! UVXY should be good, it damn fucking cheap

Tue, 03/06/2012 - 11:42 | 2228143 Comay Mierda
Comay Mierda's picture

thanks for the tip, just sold tvix and bought uvxy. that is a large premium for tvix

Tue, 03/06/2012 - 11:24 | 2228007 dwdollar
dwdollar's picture

All it takes is one QE3 rumor and everything is better again...

Tue, 03/06/2012 - 11:25 | 2228010 theFlyingDutchman
theFlyingDutchman's picture

Has the FED given a cue to Goldman to crash the market?

Tue, 03/06/2012 - 13:26 | 2228040 TruthInSunshine
TruthInSunshine's picture

Didn't you hear? Old Man Rothschild has a new favorite Lieutenant in charge, and his name starts with Jamie and ends in Dimon.

Goldman could be the next Lehman, for all we non-Red Shield outsiders know...


There are 5 new books economic texts coming out, published by the company that publishes textbooks in U.S. Public Schools (Houghton Mifflin Harcourt - a Rothschild owned company), and they're on Paul Krugman's recommended reading list:


How Old Man Rothschild Busted Our Balls & I Loved Him For It; A Neo-Keynesian Love Story


Snake Venom & Debt; Economics Mimics Nature Red In Fang: How Consuming More Debt Vanquishes That Which Ails


My Nation 'Tis of Thee, Sweet Land of Debt Slavery; Let Currency Debasement Ring


WWIII Was A Cold One, but WWIV Will Be Hot & From Uranus; Prepare for the Hostile Extraterrestial Invaders Now: A 318 Point, 277 Trillion USD Stimulus Plan


A Dollar Borrowed Is A Dollar Earned; How Ben Franklin Got It So Wrong



Tue, 03/06/2012 - 11:26 | 2228021 firstdivision
firstdivision's picture

It's almost 10:45, do you know what Brian Sack is going to buy?

Tue, 03/06/2012 - 11:45 | 2228157 HelluvaEngineer
HelluvaEngineer's picture

"*Everything*" </tepper>

Tue, 03/06/2012 - 11:26 | 2228022 Zola
Zola's picture

Scapegoating in 5,4,3,2,1... Boooo these Evil Hedge Funds not accepting the Greek deal... Boooo its their fault !! EVIL EVIL EVIL... And Sheep to acquiesce of course...

Tue, 03/06/2012 - 11:27 | 2228032 AN0NYM0US
AN0NYM0US's picture

One of the Bloomberg "personalities" plugging her TV show on Bloomberg radio at 5:40am as futures were tanking dismissed it as something that we all expected.

Tue, 03/06/2012 - 11:32 | 2228075 Dermasolarapate...
Dermasolarapaterraphatrima's picture

What does "armageddon" mean?

Tue, 03/06/2012 - 11:33 | 2228079 digitlman
digitlman's picture




Tue, 03/06/2012 - 11:36 | 2228101 caerus
caerus's picture

of course birinyi was sounding uber bullish yesterday...great timing as always

Tue, 03/06/2012 - 11:37 | 2228110 VelvetHog
VelvetHog's picture

Can we finally be rid of BAC?  Please!

Tue, 03/06/2012 - 11:37 | 2228112 Irish66
Irish66's picture

How's volume..not at computer!!

Tue, 03/06/2012 - 11:42 | 2228144 Howdan
Howdan's picture

Hahaha do we remember a certain shill (Larry Fink)  saying recently "I think everyone should be 100% invested long equities")? How's that trade working out for you now, eh?

Tue, 03/06/2012 - 11:44 | 2228153 Practical Irrat...
Practical Irrationality's picture

Setting up for a short-squeeze when the Jobless beats huge is my guess.

Tue, 03/06/2012 - 11:52 | 2228197 Snakeeyes
Snakeeyes's picture

On the positive side, Fannie, Freddie, FHA are really ramping up forecclosure starts!!!!!!

Hmm. Loan oroginations down, foreclsoures spiking. Should be an interesting Case Shiller report over this year.

Tue, 03/06/2012 - 11:54 | 2228207 Mutatto
Mutatto's picture

Where the fuck is QE3??!!! 

It should have been here like 75 points ago!!!

The Fed can't do ANYTHING right...


Tue, 03/06/2012 - 12:07 | 2228272 Moneyswirth
Moneyswirth's picture

That made me LOL

Tue, 03/06/2012 - 12:07 | 2228273 Moneyswirth
Moneyswirth's picture

That made me LOL

Tue, 03/06/2012 - 12:08 | 2228276 Moneyswirth
Moneyswirth's picture

Double post


Tue, 03/06/2012 - 11:54 | 2228208 RaymondKHessel
RaymondKHessel's picture

The deflationary bust precedes the hyper inflationary blastoff.

Tue, 03/06/2012 - 16:48 | 2229701 Mutatto
Mutatto's picture

I concur.


Tue, 03/06/2012 - 12:03 | 2228251 paddy0761
paddy0761's picture

All is well. QE3 will be officially announced at S&P500 = 1301.

Tue, 03/06/2012 - 12:13 | 2228306 adr
adr's picture

I'll believe the selloff if Europe closes and we don't get a 4 hour vapor volume 100 point meltup like every single day so far this year.

150 points is now equal to a 4 point drop years ago. Ot a big deal, the only moves worth watching are 500+ point moves. That is actually very sad.

Even though the economy probably lost 500k+ jobs last month unadjusted, I'm thinking the payroll on Friday is going to be +342k. That will blow away expectations, but won't be too unbelieveable for the Con networks to break out in celebration. They need a setup so they can use February to vindicate their positions on the BS January payroll.

Or if everything really is about pushing for QE. We'll get +120k just to set up a weakening jobs outlook but not enough of a loss spook the market. That will allow for a few momos to drop 5% or so giving easy in positions for the hedgies. Maybe get oil to around $94. If QE is a go following the PSI bust, momo stocks will jump 8% on the first day add oil should add $10. Within a wekk the momos will return 12-15% and oil will be at $120. The business networks will claim stocks were oversold on fears and $130 oil can be weathered by the strong economy. By the end of the month stocks will be up 20% and oil will be pushing the $150 mark.

This will set up the perfect selloff top in May. The economy needs to tank in the summer to set up falling Obama poll numbers. To give legitimacy to the election. After the debates and debt ceiling arguments, Obama will launch his October surprise, actually in September, a massive debt reorganization for single people making under $40k and couples under $60k. Middle class white families will be screwed on the deal, but their votes would have never counted anyway. Obama wins 53%, Romney 21%, Paul 26%.

Tue, 03/06/2012 - 12:25 | 2228372 Overflow-admin
Overflow-admin's picture

Did you notice the price action of the CAC40? I don't know if anyone has already seen something like that, it looks to me there are some strong hands holding the price (around 15min each time)


I've never seen anything so visible before ^^

Tue, 03/06/2012 - 12:46 | 2228486 pazmaker
pazmaker's picture

pretty good stuff there ADR...... lets see!

Tue, 03/06/2012 - 13:38 | 2228685 Shizzmoney
Shizzmoney's picture

After the debates and debt ceiling arguments, Obama will launch his October surprise, actually in September, a massive debt reorganization for single people making under $40k and couples under $60k. Middle class white families will be screwed on the deal, but their votes would have never counted anyway.

I agree with 99% of what you say, except for above.

There is NO way debt reorganization/forgiveness happens here.  NO WAY.  The Neo-Cons/Libs will never allow that.  Even though 60% of the debt is fraudulent (if my lawyer can't read the form you sign for a credit card, then there is fraud.  Even if the debtor was stupid enough to sign the line).

Greece is proof that the plutocracy is hell bent on getting their cash.  They took a loss on mortgages, they ain't taking a loss on student/cc/medical/government debt.  They WILL make those at the bottom pay for it, most likely in 2013.  Those at the top get more tax breaks in order to "create growth and jobs". For those at the bottom, whether by slashing entitlements like Unemployment and SSI, raising taxes on those making less than 100K/yr, and of course, confiscating PMs....those motherfuckers are gonna get their money.  

My prediction? We all LOL 6 mths later when the DOW loses half its value, the USD turnsinto toliet paper, and thereafter, the working class goes "Galt" (either by chocie or necessity), and Gold beats the DOW for the first time since 1980.

Obama wins 53%, Romney 21%, Paul 26%.

This is if Paul runs 3rd party.  I actually think if he runs 3rd party, he'd get 30%.  Obama still wins, but if you are betting, Romney isn't a bad look at 10 units at +155

Tue, 03/06/2012 - 12:31 | 2228410 Grand Supercycle
Grand Supercycle's picture

As warned about previously - overextended SP500 / DOW / NASDAQ trend degradation has increased with risk of waterfall sell off.
Also warned about, USDX shows further strength.
S&P500 weekly chart Feb 18:

Tue, 03/06/2012 - 12:57 | 2228541 Darkness
Darkness's picture

tyler can you save all our souls and make a weekly itunes podcast?

Tue, 03/06/2012 - 13:55 | 2228756 Instant Wealth
Instant Wealth's picture

Did Maria Bartiromo already yell: "We're off the lows!" ?

Tue, 03/06/2012 - 14:37 | 2228980 connda
connda's picture

Sweet!  Bring it on!

Tue, 03/06/2012 - 15:26 | 2229233 devo
devo's picture

5 days of this, and I'll be excited, but this is probably just a correction.

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