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S&P 500 Gaps Down As 50DMA Taken Out

Tyler Durden's picture


Volume is further picking up as Financials move to the worst spot (down over 3%). ES is down 2.5% and has just taken out the 50DMA as the Dow is down over 300pts. HYG remains a significant underperformer but equities look like they are playing catch up finally to credit markets - short-term target 1166 for S&P 500 given current HY levels.

This is very clearly a broad risk-asset sell-off as AUD is now down 2% on the day and commodities are getting crushed (Gold $1690).

Chart: Bloomberg


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Mon, 11/21/2011 - 12:09 | 1898686 Cognitive Dissonance
Cognitive Dissonance's picture

The elevator also goes down folks.

Mon, 11/21/2011 - 13:03 | 1899049 Oh regional Indian
Oh regional Indian's picture

The sting of the scorpion, just as you think you got away, gotcha.

Very interesting astro-links this year. What with Troy Davis on September 21st and all.

Borad sell off, probably followed by a narrow, shiney recovery.



Thu, 11/24/2011 - 19:07 | 1911734 Carlyle Groupie
Carlyle Groupie's picture

Boycott the jew! In all forms.

Mon, 11/21/2011 - 12:10 | 1898690 Irish66
Irish66's picture


Mon, 11/21/2011 - 12:10 | 1898692 WonderDawg
WonderDawg's picture

Liquidation, bitchez!


Mon, 11/21/2011 - 12:10 | 1898693 lizzy36
lizzy36's picture

The down elevator is express only.


Mon, 11/21/2011 - 12:18 | 1898735 Double down
Double down's picture



Mon, 11/21/2011 - 12:26 | 1898789 scatterbrains
scatterbrains's picture

what is the equivalent Bove level when the Deer re-appears?  I'm trying to calibrate.

Mon, 11/21/2011 - 12:30 | 1898813 mayhem_korner
mayhem_korner's picture



Hey Lois, why is Bove never around when the deer shows up?

Mon, 11/21/2011 - 12:33 | 1898850 Cognitive Dissonance
Cognitive Dissonance's picture


Mon, 11/21/2011 - 12:35 | 1898858 Mike2756
Mike2756's picture

Yep, looking like a herd event.

Mon, 11/21/2011 - 12:45 | 1898934 EL INDIO
EL INDIO's picture

Somebody should’ve written a book about the ‘deer in headlights’ event instead of the black swan.

Mon, 11/21/2011 - 12:11 | 1898694 Hansel
Hansel's picture

It's Contained!™

Europe Is Fixed!™

This Plan Will Work!™

Mon, 11/21/2011 - 12:21 | 1898763 Mesquite
Mesquite's picture

My morning chuckle...Thanks

Mon, 11/21/2011 - 12:11 | 1898695 Quintus
Quintus's picture

Don't panic.  'Investors' will come charging back shortly based on some hugely positive (and quickly rejected) rumour and stocks will soar into the close.


Mon, 11/21/2011 - 12:38 | 1898889 Spastica Rex
Mon, 11/21/2011 - 12:12 | 1898697 firstdivision
firstdivision's picture

FYI we hit the 50% retracement of that entire magical run up in October.

Mon, 11/21/2011 - 12:12 | 1898698 treemagnet
treemagnet's picture

Down in the morn, up in the noon.  Same shit, day after day after day.  Can't wait till Ben asks "whats this red button do?"

Mon, 11/21/2011 - 12:12 | 1898700 SilverRhino
SilverRhino's picture

BUY THE FUCKING DIP .... Bitchez!!

Mon, 11/21/2011 - 12:18 | 1898739 WonderDawg
WonderDawg's picture

I'll buy the dip in a couple of years when it's finished dipping.

Mon, 11/21/2011 - 12:29 | 1898809 Long-John-Silver
Long-John-Silver's picture

Avast me Matey's! Grapple 'n board that Gold 'n Silver loot ship!

Thar givin' away t' stores today!

Take all ye can afore th' Chinese get it all! Arrrrr!

Mon, 11/21/2011 - 14:52 | 1899463 Gief Gold Plox
Gief Gold Plox's picture

Arrrrrrgh! Me matey's. Tis be tha familiar graph of the shiny coins on sale I tell ye. Get 'em while it be fresh yar land lubbers!

Mon, 11/21/2011 - 12:13 | 1898703 PicassoInActions
PicassoInActions's picture

we will close in minor minus today. I would say -100 to 130


Mon, 11/21/2011 - 19:31 | 1900651 LooseLee
LooseLee's picture

How'd that work out for ya? Dow off 248!

Mon, 11/21/2011 - 12:14 | 1898709 Mike2756
Mike2756's picture

Wtf is up with the spike in the Euro?

Mon, 11/21/2011 - 12:16 | 1898721 Spooky Polish
Spooky Polish's picture

good question m8

Mon, 11/21/2011 - 12:21 | 1898764 Mike2756
Mike2756's picture

It doesn't look like it will follow through. Some EU bank forced to repatriate?

Mon, 11/21/2011 - 12:21 | 1898753 Dr. Engali
Dr. Engali's picture

People repatriating capital.

Mon, 11/21/2011 - 12:25 | 1898792 Mike2756
Mike2756's picture

Not much of a rally in the u.s. 30yr given the carnage in equities.

Mon, 11/21/2011 - 12:23 | 1898776 Cdad
Cdad's picture

Criminal syndicate Wall Street bankers excecuted a program:  Shank the US dollar, but [to cover] Eurodollar, Shank long dated US T bills....sound and fury signifying nothing.

Entry point on AGQ is close...really close.  Should get a nice low volume drift now down beneath the LOD, perhaps all the way down close to $51...where I'd be a taker.


Mon, 11/21/2011 - 13:16 | 1899101 The Fonz
The Fonz's picture

Agree with the sentiment Cdad on the silver but I wouldn't bet on silver going up when JPM just moved an immense amount of silver into its registered category. I cannot help but think they may be lining up the big guns to break silver below 30 if they can. They didn't take all that silver without being in emergency mode. Liquidation first, and if that is stopped then light volume for manipulation. First Notice on 30th of Nov. If I was them I'd use this slide to break the silver markets back before I was on the hook for massive Dec deliveries.  On the other hand it might finally break, but if it does it will be becuase the banks have lost control, and I don't think they have ... yet.


Mon, 11/21/2011 - 12:14 | 1898712 youngman
youngman's picture

Gold and Silver down big too.....Options expiry tomorrow but that should be trown out the window with what is going on in the EU and our Super duper dumb committee

Mon, 11/21/2011 - 12:18 | 1898741 DosZap
DosZap's picture


As the shite continues to roll downhill, and it will.

Be prepared with lots of dry powder,because we will get the chance at 1000-1200 again shortly.Maybe even less.

Mon, 11/21/2011 - 12:50 | 1898901 Smiddywesson
Smiddywesson's picture


Mon, 11/21/2011 - 14:48 | 1899448 seek
seek's picture

Virtually no one will be willing to sell physical if the paper price goes down that low. Plus we'll see premiums explode, just as we have the last couple pullbacks. If paper goes below ~1350 with an imploding Euro it will (finally) be the decoupling event.

Mon, 11/21/2011 - 12:14 | 1898714 CrimsonAvenger
CrimsonAvenger's picture


Mon, 11/21/2011 - 12:16 | 1898722 Caviar Emptor
Caviar Emptor's picture

There comes a day when all the previous assumptions, about bailouts for everyone, everywhere and forever, come crumbling down. And all the positions based on that assumption have nothing but air underneath

Mon, 11/21/2011 - 12:19 | 1898748 WonderDawg
WonderDawg's picture

And there you have it, folks. In two sentences, Caviar Emptor has summed it up.

Mon, 11/21/2011 - 12:40 | 1898906 Spastica Rex
Spastica Rex's picture

Hold your ground! Hold your ground!

Mon, 11/21/2011 - 12:16 | 1898723 fonzanoon
fonzanoon's picture

Dick Bove said buy bank stocks with both hands.

Mon, 11/21/2011 - 12:16 | 1898724 surf0766
surf0766's picture

Buy banks stocks foot over head.

Mon, 11/21/2011 - 12:31 | 1898831 Dr. Richard Head
Dr. Richard Head's picture

BUY banks stocks with head in ass...there, fixed it for ya.

Mon, 11/21/2011 - 12:36 | 1898876 Mike2756
Mike2756's picture

Was going to post that but figured i'd be polite, lol.

Mon, 11/21/2011 - 12:42 | 1898920 Dr. Richard Head
Dr. Richard Head's picture

Eh. politeness is overrated.  As is spelling and grammar.

Mon, 11/21/2011 - 17:54 | 1900256 Mike2756
Mike2756's picture

What's wrong with my grammar? She was doing ok just yesteday.

Mon, 11/21/2011 - 12:16 | 1898725 Tsar Pointless
Tsar Pointless's picture

Meltdown Monday, currently at bat.

Turnaround Tuesday, you're on deck!

Mon, 11/21/2011 - 12:16 | 1898727 MFL8240
MFL8240's picture

Tyler, why would Gold be down given all that is happening?

Mon, 11/21/2011 - 12:19 | 1898742 dereksatkinson
dereksatkinson's picture

Chinese raising margin requirements which was actually announced last week.  Bears are just raiding and will probably continue to do so through expiration.


It's madness though.  Gold should be going up.

Mon, 11/21/2011 - 12:34 | 1898854 Mr_Wonderful
Mr_Wonderful's picture

There´s years of backing and filling left in gold.

Mon, 11/21/2011 - 12:19 | 1898743 qussl3
qussl3's picture

Until we start making margin calls in gold, gold will be panic sold to get confetti to keep the players in the game.

Mon, 11/21/2011 - 12:20 | 1898749 Caviar Emptor
Caviar Emptor's picture

Paper gold selling off. Investors liquidating braodly, especially their winners

Mon, 11/21/2011 - 12:33 | 1898842 Dr. Richard Head
Dr. Richard Head's picture

Exactly, dry powder needed to cover loses on everything else.

Mon, 11/21/2011 - 12:20 | 1898754 barkingbill
barkingbill's picture

guys really you should look at what happened to gold during 2008. sell off means sell off. liguidation. gold too. gold will recover when they print. 

Mon, 11/21/2011 - 12:21 | 1898762 fonzanoon
fonzanoon's picture

I have been asking this question for weeks. I am just going under the premise that everything we are seeing is a bullshit smoke screen. Eventually reality will win out and you won't have to be asking that question anymore.

Mon, 11/21/2011 - 12:24 | 1898782 AnarchoCapitalist
AnarchoCapitalist's picture

People are clamoring into the dollar. The same thing happened in 2008. The dollar is the destination of choice for money managers during a "flight to safety." Do not be concerned though. I would use this opportunity to buy gold at a better price as it will continue to outperform in the long run as central banks continue to devalue in the race to the bottom.

Mon, 11/21/2011 - 13:00 | 1899036 tmosley
tmosley's picture

Paper gold is down.  Real gold abides.

Real silver vanishes.

Mon, 11/21/2011 - 13:50 | 1899231 Temporalist
Temporalist's picture

Options expiry Tuesday.  Plus can't have the one asset people are actually going for looking good during all these Grey Swan events or who will want to play in their rigged casino?

Mon, 11/21/2011 - 14:50 | 1899456 seek
seek's picture

OpEx, gold always plunges right before OpEx. It's so predictable I tell friends that want to buy in to hold off until the big drop a couple days before, and come off looking like a prophet every time.

Mon, 11/21/2011 - 12:17 | 1898730 electricgorilla
electricgorilla's picture

Sitting on Cold Hard Cash, some physical Bullion, and a few shares of the Municipal Bond Etf MUB.

Mon, 11/21/2011 - 12:17 | 1898732 slaughterer
slaughterer's picture

Feels like 1973 all over again.  

Mon, 11/21/2011 - 12:20 | 1898757 Caviar Emptor
Caviar Emptor's picture

Explain please

Mon, 11/21/2011 - 12:18 | 1898736 prains
prains's picture

where are we at relative to the 1907 chart at this point??

Mon, 11/21/2011 - 12:18 | 1898737 Loose Caboose
Loose Caboose's picture

This is like watching a drunk stumble around and stumble around but never fall down.  It's like some weird inner gyroscope keeps kicking in just before he does a face plant on the pavement.  It's tedious.  The markets haved tuned into weebles.

Mon, 11/21/2011 - 12:18 | 1898738 cognus
cognus's picture

gold positions being given up to raise cash for margin calls?

also gold in lousy technical shape.


Mon, 11/21/2011 - 12:18 | 1898740 Caviar Emptor
Caviar Emptor's picture

We're starting a cycle where we're not just re-pricing risk, we're re-pricing the geopolitical economy. 

There's a gross mis-allignement between assumptions and realities about the will of politicians to pursue bailouts. And there's gross underestimation about political conflicts

Mon, 11/21/2011 - 12:19 | 1898746 Boston
Boston's picture

Don't look now, but looks like Oppenheimer (OPY) is circling the drain.......

Mon, 11/21/2011 - 12:20 | 1898752 slaughterer
slaughterer's picture

Bear trap?

Mon, 11/21/2011 - 12:22 | 1898772 Bazooka
Bazooka's picture

Until proven wrong, my conviction is that precious metals will crash and burn like equities.

DEFLATION means many will sell their holdings to raise cash...since Gold and Silver are assets being held by many who also hold EU soverign bonds, margin calls will force sales of gold and silver to raise cash. CASH is KING in a deflationary storm.

My prediction still holds: Gold at $490 and Silver at less than $2 by the time this deflationary storm ends.....first paus will be this time next year and then flush to a bottom in 2016 or 2017.

Mon, 11/21/2011 - 12:27 | 1898796 mayhem_korner
mayhem_korner's picture



So you should be willing to short gold comfortably at $1200 or so.  Where can I sign up?

You can have deflation of assets and inflation of staples concurrently.  What do you think has happened in the past 3 years?  As velocity increases, staples increase in price, and consumers have to funnel more money to perishables, and less to servicing assets.  Thus you get both asset deflation and (hyper) inflation at the same time. 

The flaw in your thinking is you view Au and Ag as assets.  They are wealth stores, aka MONEY.  Once you're over that apparently difficult intellectual hurdle, we'll accept your repentent comments.  :D

Mon, 11/21/2011 - 12:28 | 1898804 qussl3
qussl3's picture

Banana Ben would like to have a word with you.

That kind of deflation would almost certainly imply global banking collapse as all books go underwater.

Possible? Yes.

Likely? Not at all.

Mon, 11/21/2011 - 12:41 | 1898912 EL INDIO
EL INDIO's picture

Dude I'm with you on the deflation thing but Gold at $490 ! Are you smoking something ?

You forget china an its trillions of digital dollars (not even paper) !

Mon, 11/21/2011 - 15:59 | 1899808 Bansters-in-my-...
Bansters-in-my- feces's picture

My conviction if gold hits $ will be dead....

Me too.

Mon, 11/21/2011 - 19:46 | 1900717 LooseLee
LooseLee's picture

So Dow 490/S&P 50/NAS 400? Sounds like a buying opportunity here, too. Doubt the PM's go that low, though...

Mon, 11/21/2011 - 12:24 | 1898785 swanpoint
swanpoint's picture

the silver dildo i stuck up my ass is starting to bother me

Mon, 11/21/2011 - 13:02 | 1899043 JohnG
JohnG's picture's antiseptic.

Mon, 11/21/2011 - 12:27 | 1898801 Dr. Gonzo
Dr. Gonzo's picture

Breathtaking. Now bring the deer out.

Mon, 11/21/2011 - 12:37 | 1898885 marcusfenix
marcusfenix's picture

MW running an alert titled- "supercommittee sell- off" pretty funny stuff

anyways, remember there is no need to panic so please proceed in an orderly and calm fashion to the nearest emergency exit...

thank you.

PS- I vote yea on a Deer siting before the end of the day.

Mon, 11/21/2011 - 12:38 | 1898893 TradingJoe
TradingJoe's picture

and again ai had to move the stop loss on my puts :))) to a better place of course :)))

Mon, 11/21/2011 - 14:03 | 1899286 antidisestablis...
antidisestablishmentarianismishness's picture

Thank God for the safe haven.  Oh, wait, I guess not.

Mon, 11/21/2011 - 14:10 | 1899312 AmazingLarry
AmazingLarry's picture

Why the hell hasn't the VIX moved in accordence, here?

Mon, 11/21/2011 - 15:47 | 1899763 Bansters-in-my-...
Bansters-in-my- feces's picture

All this for Option Expiry's on Gold.

Boy the TPTB really don't like gold ,do they now....

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