• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”


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.


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

Your rating: None

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Fri, 05/18/2012 - 16:16 | 2441688 NemoDeNovo
NemoDeNovo's picture

Well with GM withdrawing their AD $$$$$$$$ - WHO'S NEXT??????


FakeBook, Fed Book, Fail Book whatever...... Stick a FORK in em, they are DONE





Fri, 05/18/2012 - 16:22 | 2441721 John Law Lives
John Law Lives's picture

Creating a Facebook account and loading it up with gobs of personal data is (and always was) a bad idea.  There is no telling how long that data will be stored, who may access it, and how it may be used in the future.

Fri, 05/18/2012 - 16:27 | 2441751 fuu
fuu's picture

In the future all of FB will be in a torrent.

Fri, 05/18/2012 - 16:34 | 2441783 John Law Lives
John Law Lives's picture

This article (from July, 2010) really got my attention when it broke.  Alarming stuff re. FB accounts and torrent files...



Fri, 05/18/2012 - 16:40 | 2441807 fuu
fuu's picture

It will only get worse.

Fri, 05/18/2012 - 16:43 | 2441822 John Law Lives
John Law Lives's picture

FB has compiled a massive amount of personal info. on hundreds of millions of willing users.  That amount of personal data will prove irresistable to people in power (imho).

Fri, 05/18/2012 - 17:00 | 2441896 DaveyJones
DaveyJones's picture

I think we were saying this a few weeks ago. We should all open an account an put total bullshit about ourselves, our family, our "preferences" fake photos, just anything to screw up the database. 

Fri, 05/18/2012 - 17:25 | 2441972 John Law Lives
John Law Lives's picture

Interesting notion...


Fri, 05/18/2012 - 17:36 | 2442007 Nugents Bastard
Nugents Bastard's picture

Indeed.  If you post enough bullshit vacation pictures, monday-morning sad face emoticons, and random inspirational quotes on your wall, the government will never suspect that you are stockpiling gold and guns in a secret underground fortress.

Guess I'd better go update my status.  /sigh lolz

Fri, 05/18/2012 - 16:26 | 2441746 The Gooch
The Gooch's picture

You can't "cancel" a FLATbook account. You can only "cancel" the ability for others to "see" your profile.

Nice feature ZuckAIPAC.

Hotel CIAfornia, bitchez.



Fri, 05/18/2012 - 16:36 | 2441792 John Law Lives
John Law Lives's picture

Good point.  No telling how long all that personal data might be retained and who might have access to it.

Fri, 05/18/2012 - 17:07 | 2441918 New_Meat
New_Meat's picture

"No telling how long all that personal data might be retained..."

That, Sir, would be forever.

"... who might have access to it."

Well, correct, but we can bet that they are in Utah.

- Ned

Fri, 05/18/2012 - 18:56 | 2442210 Element
Element's picture

Facebook ... yet another hollow 'company' with no products to provide a return on the mal-'investment' in them.

Except other people's (rendered non-) personal info.


East German Stasi ... amateurs.

Fri, 05/18/2012 - 16:49 | 2441849 Paul Atreides
Paul Atreides's picture

There is a delete account option.

Barbaric tin foil hat wearing mofo that I am spent 2 hours deleting ALL the content (pictures, page likes and friends) before I actually used the delete acount option.



Fri, 05/18/2012 - 16:55 | 2441873 John Law Lives
John Law Lives's picture

How can someone know that Facebook actually has permanently removed and deleted all the data it stored re. their account from its data servers?

Fri, 05/18/2012 - 17:02 | 2441900 battlestargalactica
battlestargalactica's picture

When Fed SWAT teams break in and plant evidence in your house, then you'll know that you are released from the Matrix.

Fri, 05/18/2012 - 21:06 | 2442518 Al Huxley
Al Huxley's picture

I can pretty much guarantee you that it isn't.

Sat, 05/19/2012 - 09:32 | 2443071 squexx
squexx's picture

I don't know about deleting content on your page, but anyone stupid enough to invest in this sinking ship deserves to have their bank account deleted!

Fri, 05/18/2012 - 17:00 | 2441894 RaymondKHessel
RaymondKHessel's picture

Exactly. I'd keep it open in a perpetual blank state (all likes, posts, EVERYTHING deleted) for 6 months to 2 years. Give their database servers time to purge your archive data. After that close or not doesn't matter.

Fri, 05/18/2012 - 21:09 | 2442523 Al Huxley
Al Huxley's picture

It doesn't matter if it rolls off FB's backups, because it will all be in the big NSA data warehouse in Utah.

Fri, 05/18/2012 - 17:20 | 2441956 Marginal Call
Marginal Call's picture

Try back in a month.  You'll be able to log in.


They delete nothing.

Fri, 05/18/2012 - 17:26 | 2441974 Paul Atreides
Paul Atreides's picture

If you delete the account you can no longer log in.

Fri, 05/18/2012 - 17:30 | 2441986 The Gooch
The Gooch's picture


Just go log back in and there it is!

Delete is a relative term.

Fri, 05/18/2012 - 18:03 | 2442065 Paul Atreides
Paul Atreides's picture

If you delete your account it will be ‘deactivated’ for two weeks same as a normal de-activate but after the two weeks it will be permanently deleted (as for the content it is most likely saved...only the Z man and the NSA know for sure). Do not login to your account during this time as it will cancel the deletion request. After the 2 weeks is up you can no longer log in.

As for delete being a relative term...for facebook I am sure it is ;)

Sat, 05/19/2012 - 03:46 | 2442897 StychoKiller
StychoKiller's picture

Someone suggested posting nekked womyn on yer facebook acct to get banned -- it might work.

Fri, 05/18/2012 - 16:45 | 2441836 Randall Cabot
Randall Cabot's picture

Not so fast with the fadebook-it's up 10% AH!!!


Fri, 05/18/2012 - 17:21 | 2441960 jamezelle
jamezelle's picture

AH algos goin crazy

Fri, 05/18/2012 - 18:32 | 2442153 GeezerGeek
GeezerGeek's picture

Interesting link. I followed it and saw "Facebook Inc. Cl A". Did they mean CIA? Are they admitting it?

Fri, 05/18/2012 - 18:33 | 2442155 Everybodys All ...
Everybodys All American's picture

More than likey these trades were made during the day and are showing in the after hours but have no bearing on current price.

Fri, 05/18/2012 - 19:02 | 2442233 Element
Element's picture

Yeah, we can't have the core of the urban spy network going belly up ... release the Algos!

Fri, 05/18/2012 - 16:10 | 2441653 Agent P
Agent P's picture


Fri, 05/18/2012 - 16:10 | 2441654 HD
HD's picture

Could not be happier. Honestly can't get the smile off my face.

Fri, 05/18/2012 - 16:21 | 2441691 B-rock
B-rock's picture

+1 No kidding!  Awesome day!


It looks like MS spent $1.7 billion to defend $38 before the close.

Fri, 05/18/2012 - 16:21 | 2441719 Gief Gold Plox
Gief Gold Plox's picture

Agreed. Facebook goes nowhere fast and I take delivery of silver purchased at almost bottom price.

Not a bad week for this barbarous relics hoarder.

Fri, 05/18/2012 - 16:24 | 2441734 Bunga Bunga
Bunga Bunga's picture

Only barbarians are not on Facebook.

Fri, 05/18/2012 - 17:53 | 2442043 lakecity55
lakecity55's picture

No Shit! I too went on a PM binge right before the upswing. I'm starting a new IPO, GOLDBOOK!

Fri, 05/18/2012 - 18:34 | 2442158 GeezerGeek
GeezerGeek's picture

But how do you sew electronic Facebook shares into your clothes?

Sat, 05/19/2012 - 03:49 | 2442900 StychoKiller
StychoKiller's picture

Use an app that runs on a multi-threaded OS!  (thanks, try the veal) :>D

Fri, 05/18/2012 - 16:58 | 2441656 Kreditanstalt
Kreditanstalt's picture

"On the first day of trade the underwriters are obligated to support the IPO price. Let's see how it does on Monday."

MS must have nearly all the stock now.  Must've cost them a pile.  We'll know in the coming day or two whether they can unload it without losing a load...

















Fri, 05/18/2012 - 16:11 | 2441661 FLUSA.com
FLUSA.com's picture

Got all my Facebook stock updates on Twitter....hmmmm

Fri, 05/18/2012 - 16:16 | 2441695 Caviar Emptor
Caviar Emptor's picture

Oh but you missed all of the gossip about the Kardashians, and getting messages from your great aunt in Broward County....

Fri, 05/18/2012 - 17:30 | 2441989 FrankDrakman
FrankDrakman's picture

I understand Broward County and great aunts, but what's a "Kardashian"?

Fri, 05/18/2012 - 19:07 | 2442245 Element
Element's picture

A dreary coffee-coloured heifer with silicon udders and a corrective ego implant.

Fri, 05/18/2012 - 16:11 | 2441662 Solid Gold Bubble
Solid Gold Bubble's picture

/me Likes this

Fri, 05/18/2012 - 16:12 | 2441664 the not so migh...
the not so mighty maximiza's picture

Its the new myspace.

Fri, 05/18/2012 - 16:24 | 2441731 Zero Govt
Zero Govt's picture

it's new egg-on-the-face for Goldmans

'The Invincibles' of GS and JPM have taken a bit of a hammering this week

rotten eggs anyone?

Fri, 05/18/2012 - 16:29 | 2441760 Trimmed Hedge
Trimmed Hedge's picture

For some strange reason I seem to be having trouble logging into my GeoCities page....

Fri, 05/18/2012 - 16:30 | 2441761 Trimmed Hedge
Trimmed Hedge's picture

Once was enuff...

Fri, 05/18/2012 - 16:11 | 2441667 Dr. Engali
Dr. Engali's picture

You have to love metals against this tape. Maybe the Morge is starting to feel the squeeze against their short positions  there too.

Fri, 05/18/2012 - 16:16 | 2441693 Mark123
Mark123's picture

Very unusual indeed....the strength of Gold in particular when VIX is so high makes me wonder.  Arn't all the lemmings supposed to rush into $US treasuries and sell gold when things get ugly????


What is Jamie up to?

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