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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redpill's picture

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

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....

HarryM's picture

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

Manthong's picture

Geezus H...

Who could have seen this coming?

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!

Fukushima Sam's picture

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

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.


resurger's picture

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


GeneMarchbanks's picture

Dis-inflationary bust up is on schedule...

redpill's picture

Market sez, get QEasy or we get cranky!

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.

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.

Chappy's picture

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

GoldbugVariation's picture

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

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)

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?  :-)

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?  :-)

323's picture

Right, because spelling is the peak of intellect.

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...

JPM Hater001's picture

You guys need to play nice.

Come on bitchez...hug it out.

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.

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.

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.


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.

rosiescenario's picture the algo's managing the HFTs drive everything in lock step.....

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.

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...

Hugo Chavez's picture


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

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

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...

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

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.

Cognitive Dissonance's picture

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

gaoptimize's picture

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

gaoptimize's picture

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

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.

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. 


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.


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.

Comay Mierda's picture

back up the truck on VXX, VXZ, TVIX

resurger's picture

i was heavy loaded since last week...

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.

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.

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.