Stocks Plunge In Last Minute On Rebal Day, June Is Worst Month Since October 2012

Tyler Durden's picture

The S&P 500 ended the month with an odd shade of green (called red). This is the worst month in stocks for 8 months and makes only the 5th negative month in the 20 months since the global central bank co-ordinated save in Q4 2011. The week, however, saw the S&P gain around 1.25% on the back of endless repeated bullshit from various Fed heads about how we all got it so wrong... which also saw Treasury yields drop notably (30Y -8bps on the week and 10Y down 16bps from its Monday highs). Equities remain the big year-to-date winners and despite some of the biggest single-day gains in over a year today gold and silver remain at the lower end of the pile. The Nikkei and the S&P lead global DM equities (now what do they have in common?). Then with minutes to go, S&P futures collapsed on massive volume to the lows of the day...


Risk... Schmisk... Taper... Schmaper...


Only the 5th drop in the last 20 months... do not panic!!


leaving the S&P (and the Nikkei) as the big winner year-to-date in global stocks...


and relative to other asset-classes...


which must mean the US is the cleanest dirty short right? Well no! It's second worst year-to-date only to China for crappy macro data relative to expectations...



Since the FOMC, we have recovered somewhat but it seems the 61.8% retracement stalled index performance even with all the Fed jawboning...


and the sectors also dropped into the close en masse with Builders worst and Utilitie sbest post-FOMC...


and Bond and FX markets have had qquite a ride since the FOMC (with JPY down over 5%!!)...


Gold and Silver had quite a day with Silver almost back to unchanged on the week...


With a few minutes to go in the day, month, quarter, it was all going great and then 330RAMP Capital stepped away and...


as S&P 500 e-mini Commitment of Traders positions plunged (h/t @AndrewYorks)




Charts: Bloomberg

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Divided States of America's picture

I like how they ass fucked the IWM in the last few minutes of was floating up the whole day and collapsed....what a fuckin joke.

Bay of Pigs's picture

Sounds like "someone heard something" going into the weekend.

Let's hope and pray for a Crimson Red Monday Flash Crash...and the BlowHorn going apeshit.

Silver Bug's picture

The system is quickly spiralling out of control. Jim Sinclair is now calling for $50,000 gold should the system collapse:

Tinky's picture

Having learned the wisdom of both modesty and restraint, I'll be satisfied with $38,000.

Nobody For President's picture

Very commendable, Tinky. Proud of yah!

The Shootist's picture

That was a pretty decent interview, Jim's real ginned up. He's ready for the upswing, locked and loaded.

The Shootist's picture

Who the fuck would be trading for paper at such a time? Krugman? Bernanke?

Long-John-Silver's picture

It's not really even paper anymore. Just 1's and 0's on a hard drive. At least with paper you could burn it for it's BTU value or pass it down so the great grand kids could auction it off on whatever replaced eBay.

hyperbole2000's picture

I've pre-nazi 10, 000, 000 DM notes my grandpa brought back from WWII.

Long-John-Silver's picture

Physical Gold will pass $50,000 on the way to infinity in terms of the (worthless) dollar.

chubbyjjfong's picture

Nice photo of the "Rena" wreck.  The ship caught a reef just off Tauranga New Zealand a few years back after the captain was boozed and looking for a shortcut.  They said it could be salvaged.  It broke up in spectacular fashion in strong winds.  The wreck polluted nearby beaches and stil affects locals and local industry.  Its still there I believe.  Many similarities to the present financial situation, a catastrophe waiting to happen.

Cdad's picture

The IWM is a complete joke.  Just check the volume on that three day "recovery rally."  Just ludicrous.  Anyone paying near all time high prices for that pile of lark's vomit deserves the rude awakening that is so obviously coming.  

The Shootist's picture

Stalingrad and Poorski down less than half a percent. Whoop-dee-doo, Basil.

Everybodys All American's picture

Total joke. This has become nothing more than a manipulated Fed scheme and virtually untradeable. All f'ing day long the stocks are being held in place so the institutional traders could dump at day's end.

asteroids's picture

That was an ugly ugly close. You could see the panic in the last few seconds as people tried to leave the building. This should instill a great amount of confidence in Asia and Europe.

Randall Cabot's picture followed exactly what Europe did a few hours earlier.

SAT 800's picture

What's an IWM? since I'm making money on my S&Pshort contract; why should I be upset?

SheepDog-One's picture

It's all so stupid even Mel Brooks couldn't make more of a mockery of this crap than the reality itself!

Cdad's picture

Well...we had to do this today for window dressing purposes, which is illegal, mind you, so that criminal syndicate Wall Street shitheads could affix perfect lies to everyone's statements so that manipulations can commence for the new quarter.

When is Wall Street going to finally recognize that the jig is up?  Honest to god, if you have been watching the BlowHorn [CNBC] this week, and you are a person with even a modicum of common sense, your brain is seriously damaged right now...from the staggering shill bullshit pumped into this quarter end.

SheepDog-One's picture

Well I'm not really concerned with what Wall St realizes or when....if PEOPLE just drew down their bank accounts and 401K's and Money Market funds, they'd choke to death like fish out of water.

Cdad's picture

That process is well-engaged.

Honestly, if The BlowHorn [CNBC] just went dark and never came back on...would anyone notice or care? 

SheepDog-One's picture

OH and the index that ends GREEN is the one with monkeyhammered RIMM and IBM in it? 3 Stooges got nothing on this clownfest!

Cdad's picture

Knife catching in silver sure has been fun.  Perfectly natural market, responding to supply and demand, of course, which apparently coincides with the criminal syndicate's quarter end.

Yeah...way to go Bernanke.  Nice financial wasteland you have built.  I can see why you are preparing to get the hell out of dodge and let someone else clean up your epic mess.

Good grief...could all of it be any more contrived than this?

Poor Grogman's picture

Millions and millions of minds all following Bernankes "Sqiggly line" formerly called the markets.

All part of the bread and circuses for those who can't stand football.

Captain Kink's picture

Bernanke should not be allowed to resign.  He should have to stick around until the end, wherever that is.  F-ing communist.

SAT 800's picture

Well, that was interesting; making money on my S&Pshorts @1606 from yesterday; and the Silver contract at 18.60; (long). I wonder what happened? oh well, maybe God loves me.

SAT 800's picture

You're only supposed to catch the knife once; when it's done falling.

insanelysane's picture

Kevin and the boys thought they had it in the bag at lunch time and decided to head to the Hamptons a little too early.

EclecticParrot's picture

Suzy Algo:  “Wow!  So cool the way you did that fake-out burst at 3:35, then  swan dived like a lead albatross.  Lotta ‘long’ faces on the longs tonight, huh? ”

Jhonny Algo:  “Thanks.  I had the coders program me for a rare Japanese candle pattern known as “Counterfeit Viagra” -- you know, initial stirrings, lots of promise, but no follow-through.”

Suzy:  “Oh yes, I’ve heard all about that.”

Jhonny (blushing):  “I-I’m talking about the stock market.”

Suzy (smiling):  “Of course.”

Jhonny:  “Anyway, now that bad news is actually bad news, I was afraid my code’s tail-chasing,  short-squeezing obsession was outdated.”

Suzy (smirking):  “Don’t feel bad – many algorithms your age begin to slow down a bit.”

Jhonny (perturbed):  “I think we’re talking AAPL’s and oranges here.”

Suzy:  “I thought it was birds and bees.  Anyway, everyone’ll blame the Russell rebalancing, won’t they?”

Jhonny:  “Well, ah, you know I can ramp this baby to the 50 DMA Monday morning – (ah, that is if the coders are on board).  Wanna bet?”

Suzy:  “Just keep telling yourself that.  Gotta go, I have a date with SDS tonight.”

Jhonny:   “What?!  He’s short -- and leveraged !”

Suzy:  “In the mood for a bit more ‘pop’.  Enjoy the shuffleboard tournament.”

The Master's picture

Hahaha great stuff EP. Thanks for that.

twh99's picture

And in May Maria from CNBC said she didn't believe in the old saying "Sell in May and go away".  That adivice would have worked very well this year.

orangegeek's picture

S&P500 weekly has been nothing but up since March 2009 - driven by QE / POMO / whatever they are branding the spend.


We are likely headed below March 2009 lows.  It's a process that will take time to unfold.  Messy Messy folks.

MyBrothersKeeper's picture

I was suprised to see the late drop.  Wasn't the last Fed jawboner suppose to speak at 3:30pm?  Perhaps if he had something not so happy to say, they preferred he wait until after the bell.

Cdad's picture

Jawboning does not hold up to "get me out" capital flows from criminal syndicate Wall Street traders that could not believe their good fortune...finding a buyer at all at the end of this ridiculous quarter.

Good luck pumping it back up with QE money there, Ben.  Something tells me that money printed out of thin air in July is going to be creatively destroyed.

debtor of last resort's picture

I'm dusting off my 'other asset classes', have a few beers, and put another needle in my Bernanke puppet. Have a nice weekend.

ebworthen's picture


How about a crochet needle, or a railroad spike?

debtor of last resort's picture

I also have a big Bubba puppet, and they sleep together since QE2. Satisfied?

ebworthen's picture

Yes, thank you so much.

I appreciate your efforts, and in this case hope voodoo works.

kito's picture

look at GOLD go!!!!!!! i cant wait to fondle those eagles when they arrive on my doorstep!!!!

Tinky's picture

Reminds me of my early days at the racetrack. Down $600 through eight races, win $100 on the last race, and walk out brimming with confidence.

The Shootist's picture

You bouht?! Congrats! Silver was up 6% today. Wait till the world finds out our financial system is a farce... get ye some insurance Kito!

kito's picture

im on the record yesterday buying gold eagles.........bay, laws, fonz are all witnesses.............................

debtor of last resort's picture

ZH icon goldbug wannabeez are quite funny... lmfao!

Panafrican Funktron Robot's picture

That was a good idea.  Might have a bit further to go before the wheels really start coming off, but we have a real fun earnings season and debt ceiling discussion to have in the near future, and uncertainty fireworks always lead to entertaining action in the paper gold market.  The good news is, you have that insurance now.  Worst case scenario for that investment is that you pass it on to your kids and grandkids as their insurance.  Really, that's actually the best case scenario, I don't cheer for a scenario where I actually have to use my gold to buy shit.

franzpick's picture

Wheels can come off SPX any day with 2 closes below 3 month resistance-support right here at 1600, with a destination of 1550, down another 3%. NYA fails 5 month support down just 1% at 9000 also headed down 3% for 8800, and same for many indices. Today's 2nd lower high combined with 2-3 existing index lower lows over the past month look to me to define the bear market downtrend channels; we're in an earnings vacuum with no stick saves in sight, so let's just change the name of this decline to a beer market..

Abi Normal's picture

 Cheers!  I will hoist a 12 oz curl...

Iam_Silverman's picture

"Silver was up 6% today."

OK, WTF happened today?  I called around yesterday to find some ASE's and the only place that had any was way up in Fort Worth.  They were going to "generously" let me purchase some for "only" $5 over spot.  And now, SPOT GOES VERTICAL!  WTF?  I can't get there until tomorrow, so what's happening?  Why does this happen while I'm backing the friggen truck up?


Note - they also have Philharmonics for "only" $4 over spot, and hardly any junk silver and generic rounds ($2-$3 over) are all sold out.  They have some Stagecoach stuff - not my cuppa tea.

buzzsaw99's picture

This market is Robert Kraft level retarded.

walküre's picture


you almost called it

S&P still over 1600 not counting AH and futures ES mess

ebworthen's picture

"That escalated quickly."

DOW dropped like 20 points in the last seconds before close.  Schbing!

CNBC has real estate and mortgage pumpers on now saying that rising rates won't affect mortgage applications.

"Well back in 19XX my mortgage was 8%, 10%, 15% - rising rates won't hurt home sales, blah-blah."

As if the 2013 economy has one damn thing to do with or in common with the economy in the 80' or the 90's.

May I remind the dopes on the glass onion (T.V.) of some things:

  1. Offshored employment.
  2. Quickly approaching lowest labor participation rate in history.
  3. Record # of Americans on food stamps/EBT.
  4. End of the rule-of-law and right to property.
  5. MERS/Linda Green robosigning.
  6. Unsustainable national debt.
  7. Housing Bubble II a year or two from popping.