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Facebook Plummets To All Time Lows As EUR Exodus Crushes Commodities, Slams Stocks
It was all going to plan until that early angst from Egan-Jones Spain downgrade was increased by L-Pap's 'sky-is-falling' Greek exit plans comments. Treasuries had leaked higher in yield and recoupled with stocks (after the divergence yesterday) but the USD (driven by EUR deterioration) was pushing higher (diverging from its recent correlation). This was dragging commodities lower but gently as stocks (especially financials) continued their dead-cat impressions. Even Facebook showed signs that the deluge of reality was coming off its shoulders. By the European close, stocks had pulled unhealthily high relative to risk-assets in general (once again) and credit was lagging a little. The Spain downgrade news stalled the EUR which began to slide - as did Gold and Silver along with USD strength - but Treasuries kept on limping higher in yield and tracking stocks, Then in the last hour of the day the L-Pap headlines - along with an increasing sense of deceleration (we saw heavy volume come in just after the European close - suggesting covering of the heavy volume up from the bounce lows yesterday) - and all the momo names started to lag with AAPL losing steam (more schadenfreude there after our comments yesterday) and then financials stumbled off their exuberant highs (though JPM managed a very good gain of over 4.5% still - as IG9 compressed for the first time in a few weeks). S&P 500 e-mini futures (ES) managed only a small loss but all the positive momentum was lost and large average trade size pressure came in at the close as it tried to get up to VWAP. VIX gained 0.5vols to close back above 22.5% and the term structure bear-steepened a little more. Yesterday's credit-led strength faded today, as skews normalized, with HYG losses and a renewed fear of the ETFs and indices leaking into the real bond market soon once again. Clusterbook is trading $30.80 after-hours with over 101mm shares traded!
Stocks (blue) and Treasuries (red) recouple today - sliding together at the close. USD strength (green) and Gold weakness was notably divergent from early Monday's tight correlations...
Stocks played catch up to credit (upper left) and broad risk assets (CONTEXT upper right) this afternoon as their exuberance once again got the better of them. Correlations dropped (lower right) but VIX pushed up to its equity/credit fair-value by the close (lower left)...
Facebook dominated headlines and fell to an after-hours and all time (all 2.7 days of it) low of $30.79 after trying and failing to regain the lows of yesterday...more exits (and more lawsuits)....
Gold and Silver recoupled briefly this morning but then silver's higher beta nature took over as the USD surged this afternoon. Oil and Copper remained joined at the hip but slid on the USD strength also...
The USD is up 0.65% on the week - so Gold and Silver are likely suffering collateral/liquidation issues on top of currency translation - but the message today (as seen above in CONTEXT) was much more about carry-trades being lifted as AUD and EUR (relative to the JPY) were unwound notably - especially at the close in the bigger higher volume selloff...(higher on the chart is USD strength)...
Charts: Bloomberg and Capital Context
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In honor of his success... I'd be happy to serve him the cream of mushroom soup at his next fancy party...
AND he got married the very next day. How come nobody here ever talks about Priscilla Chan Zuckerberg? Nobody wants to speculate on the value of the pre-nup agreement? Can we short the pre-nup agreement? ... buy CDS on it, anything? This article posted May 21 in the NY Times speculates that SHE was likely the one who asked for the pre-nup ... if in fact there is one. One wonders at what point with the pre-nup option be exercised.
http://www.nytimes.com/2012/05/22/technology/zuckerbergs-property-status...
Drudge reported that Z simply cashed out.
Something about 30 mil shares, 1 bill gross.
All done.
Fucking cool, from a scrub laboring in a dorm to married and billionaire.
Face book is dead, long live manipulation.
By the looks of his name he was buying baklava and ouzo (under the table not paying taxes) on the way to his civil servant job where his benefits were equivalent to 120% of his salary..
Dont' ask what he's buying now.
Quite a stick save by Sack in the last thirty minutes. by now the letters "E" and "S" on his keyboard have to be worn out.
Am I the only one who laughs at the absurdety of it all when gold & silver get whacked on days like this especially?
Look at Biderman's potential $trillion stock go!
Not wacked.
Just stack em and ignore the down days except to buy below your basis.
There will be a day coming when paper gets wacked, dollar included.
Hell that light at the end of the tunnel you see is the Euro burning.
Farcebook will be written of in the History books for being an all round boner.
Two days of pitiful short squeeze out of Asia, but the Facebook story is the funnest of all.
Can the Europeans top it with some bizarreness? We hope so.
Weeeeeeeeeeeeeeee!!!!!!!!!!!!!!!!!!
So based on divorce law what is the property earned before marriage belongs to the person who earned it and property earned after marriage is joint property. So Zuckerbergs wife shares in his profts after marriage. But is she also entitled to the losses ? Which would be a fair way of doing things. If so she is a few billion under!
Max has to be putting us on, nobody is that dumb.
from tyler's 2nd sentence: the USD (driven by EUR deterioration) was pushing higher (diverging from its recent correlation).
but the bonds were down nicely, after people parked their do-re-mi there for the weekend; and the "money" seems to have gone "to the USD", early in the week, here
and china is right there w/ the FED now, too
which probably isn't hurting the dollar v. the other horses in the gluFactotem
who coulda node?
what NW0? where?
Louis VIX has no problems.