FadeBook

Tyler Durden's picture




 

Forget that S&P 500 e-mini futures plunged to four-month lows at 1290; or Treasury yields crashed back to their record lows; or Gold and Silver's surge today; or WTI's plummet to almost a $90 handle; or Citi joining Morgan Stanley in the red year-to-date; or credit markets continuing into the red for the year; or IG9 10Y soaring further to 160bps - widest in 6 months; or VIX closing above 25% for the first time in 5 months (and decompressing to Europe's pain). Today was all about one thing - the disaster that was/is/and will be Facebook - between late openings, overwhelmed systems, a dump to the syndicate bid and almost 600mm shares traded with the syndicate just soaking it all up at $38.00 early and into the close. Is it any wonder that every other social media stock plunged and how do they expect to ever get another internet IPO off again (at anything but a massive discount). No matter what correlation trick was tried to juice markets today - for the tenth day-in-a-row markets saw a BTFD turn into a STFR. Not a pretty end to the ugliest week in six month for the S&P 500 as it nears its 200DMA into the close.

Facebook...

and (h/t Dennis Dick) for the following visual of the HFT tractor beam in FB...

And the massive dominance of the syndicate bid (as who else could it have been) is clear in this chart of the volume profile for today...with Facebook's VWAP perfectly at $40 by the close...

 

Morgan Stanley = Zuckerpunched

 

 

And the S&P 500 e-mini  futures SNAFU continues...

 

Utilities, Energy, and Materials are all now down YTD with Industrials close...

 

Gold had quite a week...

and longer-term stocks are catching up to risk-assets (proxied here by CONTEXT)...

And corporate bonds (dark red below) are now starting to get hit by the selling in the indices...

A quick run down of the day's events from Bloomberg TV:

Finally, this is what happens, Larry, when due to lack of real demand, you sell the second largest IPO in history to 25% retail, which has absolutely no idea how to trade a $100+ billion company and preserve the illusion of the ponz.

Charts: Bloomberg and Capital Context

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Fri, 05/18/2012 - 16:09 | 2441651 Ahmeexnal
Ahmeexnal's picture

Time to cancel your FB account.

Fri, 05/18/2012 - 16:11 | 2441659 walcott
walcott's picture

does aybody still have one?

Fri, 05/18/2012 - 16:20 | 2441715 uno
uno's picture

I have certainly seen the dumber people love to talk about facebook ad-nauseum.  It seems to be a way of communicating to people you do not want to ever call or email, from a business viewpoint I see it's usefulness, just not from the individual.

Fri, 05/18/2012 - 16:27 | 2441747 Mark Carney
Mark Carney's picture

WTF was with ZGNA today, lol.....

Fri, 05/18/2012 - 16:32 | 2441776 Money 4 Nothing
Money 4 Nothing's picture

Tanked..

Fri, 05/18/2012 - 16:46 | 2441839 The Gooch
The Gooch's picture

They bought the farmville.

 

Fri, 05/18/2012 - 16:52 | 2441861 walküre
walküre's picture

they SOLD the farm (ville) to buy FB

there fixed it for ya

Fri, 05/18/2012 - 16:55 | 2441874 Ahmeexnal
Ahmeexnal's picture

Japan facing extinction. Since Fukushima, birth rate has plummeted even more.

http://www.foxnews.com/world/2012/05/11/lack-babies-could-mean-extinctio...

Fri, 05/18/2012 - 17:24 | 2441970 AldousHuxley
AldousHuxley's picture

Trading in Zynga was halted after shares dropped by 13 percent after Facebook began trading.

 

were hedge funds trying to short FB by shorting a similar online entertainment stock ZNGA ?

Fri, 05/18/2012 - 17:28 | 2441980 The Gooch
The Gooch's picture

Georgia guidestones part 1.

Part 2 (the final part) after the MF pools collapse...

General Electric "We bring great things to life!"

 

 

Fri, 05/18/2012 - 17:54 | 2442048 Not Too Important
Not Too Important's picture

Soon they won't have any kids.

And the article didn't include all the mutated babies that the doctors are killing. That'd be an interesting number.

At least the Soviets let them live. Go figure.

http://www.paulfuscophoto.com/#mi=2&pt=1&pi=10000&s=31&p=1&a=0&at=0

Caution: Very real shit. Hug your kids.

Fri, 05/18/2012 - 18:09 | 2442088 lakecity55
lakecity55's picture

Notice how info is hard to get on Japan?

I have to dig around to find it.

The accident at Oh-Shit_Shima may have been a lucky break for the authors of the Guidestones.

I think things are going to get weird as these govenments lose more of what what little credibility they have left.

Fri, 05/18/2012 - 18:01 | 2442066 HarryM
HarryM's picture

Major PoW-WoW at Camp David today

Expect coordinated action Monday A.M.

http://abcnews.go.com/blogs/politics/2012/05/obama-hosts-g-8-slumber-party-at-camp-david/

Obama will be twisting arms

 

Fri, 05/18/2012 - 18:35 | 2442159 gatorengineer
gatorengineer's picture

Obama the one-worlder socialist.  He has to keep it in his pants until after the election, he will have more flexibility then........

Fri, 05/18/2012 - 20:53 | 2442491 RiverRoad
RiverRoad's picture

And those arms'll all be giving him the finger.

Fri, 05/18/2012 - 20:01 | 2442377 Reptil
Reptil's picture

Got to keep the US sheeple ignorant: No mention of the Fukushima disaster or economic demise anywhere in that article.

One by one... And when they do notice, it'll be too late: No more healthy, intelligent offspring.

Fri, 05/18/2012 - 22:23 | 2442671 jeff montanye
jeff montanye's picture

not only that but it (fox) cites gov't stats that the fertility rate will be 1.35 in fifty years.  it is 1.21 now.

http://www.indexmundi.com/japan/total_fertility_rate.html

Fri, 05/18/2012 - 16:28 | 2441755 redpill
redpill's picture

Fadbook may be more appropriate.  Can't wait till some other college smarty comes up with the next big social networking hit that the broader herd of mouth-breathing humans can't stop themselves from obsessing over and Fadbook becomes a punchline in the history of teh interwebs.

Fri, 05/18/2012 - 16:42 | 2441820 Normalcy Bias
Normalcy Bias's picture

Methinks Pinterest will be the next over-hyped tech-turd...

Fri, 05/18/2012 - 17:08 | 2441922 Abitdodgie
Abitdodgie's picture

You know some people have all the luck , take MDB for example he bought 300 shares through his trader at "whatever the price" and he has made a killing he can proudly tell his children what a good investment Faceplant was .

Fri, 05/18/2012 - 17:27 | 2441979 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

Unemployed Book

Fri, 05/18/2012 - 20:56 | 2442494 RiverRoad
RiverRoad's picture

Facebook works for junior high school kids.  And how much money have they got to spend?

Fri, 05/18/2012 - 16:22 | 2441724 Vincent Vega
Vincent Vega's picture

A few years ago I joined Facebook. I stayed with it less than a week. Yes, I did hear from a few folks I was glad to reconnect with. But I also got a few hits from people looking for a handout. I could care less if this pos goes down the crapper.

Fri, 05/18/2012 - 16:29 | 2441762 unununium
unununium's picture

<ring> <ring>

"Hello?"

<autodial pause> "Hi Mr. Muppet!  This is Jeff at Morgan Stanley.  Good news.  I was able to get your facebook allocation after all!  Can I put you down for a thousand shares?"

Fri, 05/18/2012 - 17:28 | 2441981 Silver Bully
Silver Bully's picture

Why does this remind of more than one scene from Boiler Room? Why?

Fri, 05/18/2012 - 22:24 | 2442673 palmereldritch
palmereldritch's picture

JPM, MS...it's been quite a week.

So who's the next to get their ass handed to them?

Fri, 05/18/2012 - 16:30 | 2441771 midtowng
midtowng's picture

FB is a good way to share pictures with people you rarely see. It's also a place where all the kids are, so you can find them here. Other than that it seems to be a waste of time.

But the kids love it. they can't get enough of it.

Fri, 05/18/2012 - 16:38 | 2441799 delacroix
delacroix's picture

the problem is, the kids don't have any money, that's why they spend their time on facebook.

Fri, 05/18/2012 - 17:04 | 2441909 dark pools of soros
dark pools of soros's picture

which shows increasing their revenue stream is a pipedream.   currently they are a 40 cent stock but wish to be $40 with their 100 P/E

 

 

Fri, 05/18/2012 - 17:42 | 2442020 AldousHuxley
AldousHuxley's picture

How much would government, NSA, CIA, FBI, russian KGB, north korean military, Chinese military, Iranian military, etc. have to pay you for you to disclose:

  1. Your friends names, pictures, IP address, quality of relationship, and all communication
  2. Your family names, pictures and IP address, quality of relationship and all communication
  3. Yourself name, picture, and IP address, and all communication

 

Multiple that figure by number of suckers who sign up for a credit card for a junket.

 

 

 

Fri, 05/18/2012 - 18:47 | 2442193 Jake88
Jake88's picture

does that help them make money?

Fri, 05/18/2012 - 16:38 | 2441801 Vincent Vega
Vincent Vega's picture

Obviously many people find benefit with FB. I didn't. If I have pics I want someone to see then I just email them. As for 'it's a place where all the kids are'...that's another potential problem I see with all the creeps out there and the readily accessible info. Just my opinion.

Fri, 05/18/2012 - 16:40 | 2441812 Agent P
Agent P's picture

Parents are there too, which is why the kids will eventually abandon it.

Fri, 05/18/2012 - 16:57 | 2441880 bdc63
bdc63's picture

at some point, facebook becomes very uncool ... not there yet (if my 14 year old niece is any indication), but it can't be too far off ...

Fri, 05/18/2012 - 19:41 | 2442323 Trimmed Hedge
Trimmed Hedge's picture

It's full of older adults & corporations.

Been that way for a couple years now.

FB is way past the point of "being cool" in the eyes of the youth.

Hence, the IPO...

And now? It's a publicly-traded company that needs to make $$$ -- sending its "cool" status even further down the totem pole.

Fri, 05/18/2012 - 17:06 | 2441915 11b40
11b40's picture

I have had a FB account for at least 2 years....and have exactly the same number of "friends" as when I started --- one.  Signed up to keep up with my son on the West Coast & he is the only person I commune with.

He, on the other hand, has almost 1500 "friends". 

Fri, 05/18/2012 - 17:23 | 2441967 i_call_you_my_base
i_call_you_my_base's picture

Facebook is just a piece of software that proves to you that you actually don't really like the people you know.

Fri, 05/18/2012 - 19:01 | 2442227 The Boognish
The Boognish's picture

No shit! That is dead on.

Fri, 05/18/2012 - 16:34 | 2441784 machinegear
machinegear's picture

I've worked in IT for 12 years and I still don't know WTF FB is all about. What a worthless piece of...

Fri, 05/18/2012 - 16:53 | 2441869 El Tuco
El Tuco's picture

It's about the guberment mining all the info and pictures it possibly can and creating massive databases storing all that info in your personal file for future reference.

 

Fri, 05/18/2012 - 17:13 | 2441931 Winston Smith 2009
Winston Smith 2009's picture

It's all about wasting time on gossip and superficial socializing, the same sort of crap that when done via cell phones and texting results in you sitting behind some moron at a green light or turn arrow for 50% of its duration... or until you honk.

Fri, 05/18/2012 - 18:01 | 2442064 WonderDawg
WonderDawg's picture

Car in front of me at a light gets a three count before a courtesy honk. Another three count and if they still don't move they get the prolonged honk with angry hand gestures.

Fri, 05/18/2012 - 17:03 | 2441905 max2205
max2205's picture

FB TO $100. Suck head will be the 1st trillionaire

Sat, 05/19/2012 - 00:02 | 2442798 emersonreturn
emersonreturn's picture

ever...?

Fri, 05/18/2012 - 16:13 | 2441675 Silver Bug
Silver Bug's picture

Facebook was an EPIC FAIL today. Gold was up! Don't hear the mainstream media talking about this.

 

http://ericsprott.blogspot.ca/

Fri, 05/18/2012 - 16:23 | 2441727 Winston Smith 2009
Winston Smith 2009's picture

Would a Facialbook be more profitable?

Fri, 05/18/2012 - 16:38 | 2441797 ebworthen
ebworthen's picture

Currently a skin care site; yes, XXX Facialbook would make much more profit than either.

Fri, 05/18/2012 - 16:52 | 2441862 WillyGroper
WillyGroper's picture

Perhaps face lift book might drive a business model.

Fri, 05/18/2012 - 16:26 | 2441743 BLOTTO
BLOTTO's picture

Yup - FB IPO = Epic Fail.

And no way 'they' - the pc algo's or whatever dark force is at work - was the FB IPO share going to go under $38 - not even one single penny. Psychologically that would be devasting for FB.

And all the while Au/Ag made a nice recovery over the past 48 hours...all quiet and unassuming.

Illuminati controlled Main Stream Media interpretation of Gold is that it goes 1 step forward and 2 steps backward...

When the reality is - Gold is going 3 steps forward and 2 steps backward.

 

Fri, 05/18/2012 - 16:51 | 2441855 Freddie
Freddie's picture

Gold?!?  Barbaric relic.  Charlie Munger said gold is for uncivilized people.

We all need to love FaceBook/CIA/NSA, SkyNet, and the Vampire Squid.

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