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 - 16:55 | 2441876 Bizaro World
Bizaro World's picture

Though I'm pleased w/ the rise in Gold, cautiously optimistic is a good description. The jump in Gold was not due to sudden muppet revelations.

Fri, 05/18/2012 - 16:12 | 2441668 Nader_Nazemi
Nader_Nazemi's picture

The market is a big Casino. 

The whole thing is rigged. 

Fri, 05/18/2012 - 16:57 | 2441879 CrashisOptimistic
CrashisOptimistic's picture

A bit of casino odds measurement:

Close was 1295.  Dec 31, 2011 (and btw also Dec 31, 2010) was 1257.  Yes, for both 2011 and 2010, same close (tiny fractional difference, 2011 was DOWN from 2010).

This puts the silliness up 3.02% for 17 months.  Negative real return.

Fri, 05/18/2012 - 16:19 | 2441669 walcott
walcott's picture

 

 

facebook is horseshit people. Dump your account immediately.

the original facebook.

http://www.flickr.com/photos/7388762@N03/4789782933/

Fri, 05/18/2012 - 16:12 | 2441670 el_brio
el_brio's picture

Meanwhile Theophilus Hodges, a 36-year-old property manager, stopped into an E*Trade branch in downtown Chicago on Friday morning specifically to open an account to buy Facebook shares, he said.

"If it wasn't for Facebook I wouldn't be here," he said as he left the branch to go to his bank and transfer money into his new account. "I missed out on Groupon when it went public, so I'm not going to miss the boat this time."

Mr. Hodges said he plans to invest $10,000 in Facebook shares—including $4,500 of his own money and $5,500 from his mother.

Mr. Hodges expressed confidence in Mark Zuckerberg as Facebook's CEO and said he isn't worried about Mr. Zuckerberg being young. "To me, he's a genius. You know, he created something for the whole world... Everything is social now. The world is a different place with Facebook," he said.

 

 

From the WSJ

Fri, 05/18/2012 - 16:16 | 2441686 el_brio
el_brio's picture

In other words... when your shoe-shine guy starts telling you about a stock, it's time to run.  BUTCHER THIS PIG!!

Fri, 05/18/2012 - 16:16 | 2441694 Frodowise
Frodowise's picture

I hope he enjoys losing all of that money. 

Fri, 05/18/2012 - 16:17 | 2441701 iDealMeat
iDealMeat's picture

Theophilus Hodges is $MDB

Fri, 05/18/2012 - 16:19 | 2441709 el_brio
el_brio's picture

The first name sounds Greek doesn't it?

Fri, 05/18/2012 - 16:49 | 2441765 Normalcy Bias
Normalcy Bias's picture

Yes, it sounds Nubian, Sub-Saharan Greek...

Edit: Go ahead, junk me. I've met a lot of Theo's, but anyone rolling with that full handle...I'm just saying...

Fri, 05/18/2012 - 18:42 | 2442176 gatorengineer
gatorengineer's picture

Sounds like his mom liked alphabet soup and almost got a real name............. Almost

Fri, 05/18/2012 - 16:22 | 2441718 drink or die
drink or die's picture

I didn't know MillionDollarBonus' name was Theophilus...

 

edit: crap, someone beat me to it

Fri, 05/18/2012 - 16:38 | 2441805 iDealMeat
iDealMeat's picture

;-)   jinx, buy me a jack n' coke..

 

Fri, 05/18/2012 - 16:43 | 2441825 The Gooch
The Gooch's picture

^ + 38.00!

 

Fri, 05/18/2012 - 17:49 | 2442037 tekhneek
tekhneek's picture

*$38.00025

Fri, 05/18/2012 - 16:25 | 2441730 Scalaris
Scalaris's picture

*facepalm*    >    schadenfreudian transition    >    contemplation of darwinian survivalism    >    smirk

Fri, 05/18/2012 - 16:28 | 2441756 The Gooch
The Gooch's picture

Between Rahm and Zuck, Theophilus is FUKKED!

Fri, 05/18/2012 - 16:29 | 2441757 Race Car Driver
Race Car Driver's picture

> You know, he created something for the whole world... Everything is social now.


"Look, this is just an informal chat. We were wondering what you were working on in your lab?"

"Well, I've invented a pill that gives worms to ex-girlfriends."

"Right. And, what's positive about that?"

"Well, it's a pill, that gives worms to ex-girlfriends."

"Well, could it also give worms to ex-boyfriends?"

"This is a drug, for the world, to give worms to ex-girlfriends."

http://www.youtube.com/watch?v=J5aiDuemgJ4

Fri, 05/18/2012 - 16:46 | 2441841 Global Hunter
Global Hunter's picture

I didn't click on the link that's Brain Candy I think!  Great film let me see its been a while...

Fri, 05/18/2012 - 16:34 | 2441787 Taterboy
Taterboy's picture

Six months from now on the phone: "Hello?"

"Hi Mom, it's Theo,(long pause) Mom, Mom?"

CLICK!

 

Fri, 05/18/2012 - 17:35 | 2442003 TWSceptic
TWSceptic's picture

Yes Facebook will make a lot of people less social with each other, the irony...

Fri, 05/18/2012 - 16:45 | 2441834 Taterboy
Taterboy's picture

Late today it was announced that a Mr. Theophilus Hodges was appointed Greece's Minister of Finance.

Fri, 05/18/2012 - 16:57 | 2441881 fuu
fuu's picture

That's why the euro surged late.

Fri, 05/18/2012 - 17:03 | 2441904 resurger
resurger's picture

is this /sarc?! or are you for real?!!!!!!!!!

Fri, 05/18/2012 - 22:20 | 2442668 Catflappo
Catflappo's picture

I think the real question is - "is your question sarc or for real?"

Fri, 05/18/2012 - 17:21 | 2441958 Waterfallsparkles
Waterfallsparkles's picture

Many Real Estate people jumped on the Band wagon in 2000 who never had previously invested their Money in the Stock Market and lost their Ass ets.

Never to trade ever again.

Fri, 05/18/2012 - 18:00 | 2442061 RmcAZ
RmcAZ's picture

But, but... GRPN is down 55% since it launched. What exactly did he miss out on?

Fri, 05/18/2012 - 16:13 | 2441678 Monkeyfister
Monkeyfister's picture

FAILbook!

Here's to seeing the end of that POS excuse for a "company" by the end of next week.

 

Fri, 05/18/2012 - 16:14 | 2441680 Mark123
Mark123's picture

Check out all the other recent IPO stocks (P, Grpn, Zynga, LNKD etc)....all of them got whacked today.  I smell some fear in the air.

Fri, 05/18/2012 - 16:14 | 2441683 Race Car Driver
Race Car Driver's picture

LOL!

No, seriously ... LOL!

Fri, 05/18/2012 - 16:14 | 2441684 Caviar Emptor
Caviar Emptor's picture

They waited too long. Like a fine wine that's faded badly. Like a once beautiful woman. Like a flower that's just starting to fade. 

Fri, 05/18/2012 - 16:53 | 2441870 pods
pods's picture

Like a bloated corpse that sits in the garage long after the car has run out of gas?

pods

Fri, 05/18/2012 - 16:17 | 2441689 Aztec Warrior
Aztec Warrior's picture

Here comes another bubble At least webvan came with paper share certificates which you could sell on ebay in a decade

Fri, 05/18/2012 - 16:16 | 2441690 1835jackson
1835jackson's picture

Zuckerburg is throwing a party tonight at his crib. I wonder if he will get shit faced?

Fri, 05/18/2012 - 16:19 | 2441714 Ned Zeppelin
Ned Zeppelin's picture

I think they call it Laughing All The Way To The Bank.

Suckers!

Fri, 05/18/2012 - 18:43 | 2442179 gatorengineer
gatorengineer's picture

Monster Energy Drink and Ugly Asians Woooo Hoooooooooooooo...........................

 

Wont be a real CEO until he figures out hookers and blow......

Fri, 05/18/2012 - 16:17 | 2441703 Caviar Emptor
Caviar Emptor's picture

A Suggestion: Next time, don't focus on FACES. Aim a bit lower......just sayin'

Fri, 05/18/2012 - 16:19 | 2441710 1835jackson
1835jackson's picture

Pussybook?

Fri, 05/18/2012 - 16:19 | 2441708 Death and Gravity
Death and Gravity's picture

I will tell my grandkids - I was there when it happened, and they won't have a clue what I'm talking about.

Fri, 05/18/2012 - 16:30 | 2441766 Zero Govt
Zero Govt's picture

they won't have a clue what you're on about because it was floated at $38.00 and probably closed at $38.10 and think, "Grandpa thinks watching paint dry is an event, WTF???"

Fri, 05/18/2012 - 17:46 | 2442031 Rick Masters
Rick Masters's picture

Funny shit zero govt!

Fri, 05/18/2012 - 16:19 | 2441711 Barometer
Barometer's picture

Where will it trade when you can short it

Fri, 05/18/2012 - 16:19 | 2441712 billhilly
billhilly's picture

It was amazing to watch the bid size at 38.00.  It seemed unlimited.  I had straight 99999s across my size for the longest damn time toward the close.  Seems someone was not nterested in seeing any 37, or lower, print.  Kinda fishy to me.

Fri, 05/18/2012 - 16:35 | 2441788 LarryDavis
LarryDavis's picture

Are you intimating the stock markets aren't perfectly efficient or free? What the fuck are you getting at? I think the markets are fine. Another fucking conspiracy theorist. Bob Pisani said in Trader Talk that he wants Facebook to succeed. Maybe people were just following his sage-like advice.

Fri, 05/18/2012 - 16:37 | 2441796 LarryDavis
LarryDavis's picture

Just so ZH knows, I went long VIX at 15. What a fucking no brainer. I'm not a particularly gifted investor but YOU CAN"T GO WRONG SHORTING FACEBOOK. BET THE FARM. Unless QE3 rolls into town......

Fri, 05/18/2012 - 16:40 | 2441809 LarryDavis
LarryDavis's picture

I actually loathe investing because I don't want to contribute to that system. The only way I can morally justify any kind of financial "trade" is by thinking that there might be some fund or investment bank on the other end. I really like the idea redistributing wealth to me. If anyone has any adivice on expediting that process please chime in.

Fri, 05/18/2012 - 17:17 | 2441943 Winston Smith 2009
Winston Smith 2009's picture

"I had straight 99999s across my size for the longest damn time toward the close."

HFTs.

Fri, 05/18/2012 - 17:22 | 2441962 Freddie
Freddie's picture

There is no way they will let it drop below $38.00.  They closed it at $38.01.  What a joke.

Fri, 05/18/2012 - 16:19 | 2441713 Trimmed Hedge
Trimmed Hedge's picture

After-hours trading, bitchez!!

Fri, 05/18/2012 - 16:20 | 2441717 Mark123
Mark123's picture

You should print out the chart for FB today and frame it.  It will make a lovely curio in years to come when your grandchildren ask you to tell them about the madness at the turn of the last century. 

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