DeFANG'd: Dow Dumps Into Red For 2018 As Techs Tumble

It was hard for asset-gathering, commission-takers to argue this was "nothing"...

 

While all the attention was on Facebook, Bloomberg notes there was a little more going on that spooked markets...

"In addition to FB, FANG & Trump/Mueller, Wednesday's FOMC raises possibility of four rate hikes. AAPL threatening supply chain if going w/ their own screens. To a lesser extent, Japanese polls showing Abe's popularity flagging in light of patronage scandal."

The day started off poorly with European stocks triggering a death cross...

 

But futures show that US equities got whacked on Facebook and Digital Taxation headlines... (and of course the standard late-day ramp)

 

Cash indices were all ugly...

 

The Dow Industrials and Transports are both back in the red for 2018... (NOTE by the close, Trannies managed to scramble back barely green but Industrials did not)

 

Nasdaq suffers its biggest drop since the Feb crash (the week after the biggest retail fund inflow into Nasdaq ETFs since the peak in 2000)...

 

Some not able 'breaks' today...

  • Nasdaq 100 broke its 50DMA

  • Dow broke its 100DMA (and broke below its Fib 38.2% retrace lows)

  • S&P broke its 50DMA and tested down to its 100DMA

  • VIX broke above its 50DMA

  • Small Caps (Russell 2000) broke below its 50DMA

  • Facebook broke its 200DMA

Faceplant! - first close below 200DMA since 1/5/17...

 

deFANG'd....

 

Dow broke a key support level...

 

FANGMAN Stocks were taken out back and shot...

 

With Facebook the stand-out for the monkey-hammering...FB now down 3% YTD (but don't worry, NFLX is still up over 60%!)

 

Bank stocks have erased all the post-Payrolls spike...

 

VIX surged up to almost 22 before being hit back below 20...

 

And The VIX term structure inverted once again...

 

Nasdaq's 'VIX' was the biggest jumper among the majors..

 

Bonds were bid from just before the US open, but reversed after Europe closed to end the day slightly higher in yield (extremely modest moves given the dump in stocks)...

 

 

The Dollar Index slid from the moment Europe opened (pushed their by ECB-comments driving EUR higher and Brexit comments on Cable)...

 

Cable managed a notable jump on hopeful Brexit transition deal...

 

Gold managed to make gains on the day as the dollar dipped. Silver was unch but crude and copper were lower...

 

Cryptos ended lower than their Friday close after Bitcoin briefly ramped back into the green after G-20 relief, but Trump's executive order on Venezuela's Petro sparked more concerns...

 

S&P tumbled back to meet gold as equal best performing asset class this year...

 

As a gentle reminder, one wonders if this sudden stock smackdown is a little warning message to Powell not to be too hawkish this week?

Comments

Kaiser Sousa Mon, 03/19/2018 - 16:03 Permalink

thank God those dip buyers arrived in the last hour of “trading” buying Boeing (of course????) to propel the Dow Jones Propaganda Index up 100 points & safely away from that 400 plus loss - right???

laughable…

as a reminder - "In folklore, the witching hour is a time of night associated with supernatural events."

DEATH TO THE MONEYCHANGERS.

Endgame Napoleon skbull44 Mon, 03/19/2018 - 17:45 Permalink

Or, he could shift into Fed-blaming mode, calling out behind-the-scenes Deep Staters, saying the Yellen Witch of the West plotted this, wanting the Glorious Trumpian Markets to fall, even though it sounds like his Fed chair wants interest rates raised. He is crafty at being all things to all people—the Wizard of All. 

In reply to by skbull44

lester1 Mon, 03/19/2018 - 16:04 Permalink

Its both funny and sad to see the bitcoin ponzi scheme rallying. 

 

In the end so many people are going to get wiped out. Bitcoin has zero intristic value. And it's too unstable to be used as a payment method for businesses.

DillyDilly silverer Mon, 03/19/2018 - 16:36 Permalink

lesters biggest problem is that he's taken it upon himself to be a one man army...

 

ZH doesn't even need to post crypto threads anymore, because aside from those & his zealous efforts to be first poster on those, here comes high school dropout lester (with bold caps), showing up in the high school parking lot at precisely 2:30 PM when the school bell rings to remind all the kids why he's so smart for not being interested getting a high school diploma [even on these threads that have nothing to do with cryptos].

In reply to by silverer

Keltner Channel Surf Mon, 03/19/2018 - 16:04 Permalink

"Panic"         by   The Smiths

Panic in the markets of London
Panic hits the servers in Framingham
I wonder to myself
Have markets just become sane again
as worldwide bubbles get tapped down ?
I wonder to myself

Hopium’s smoked just like grass here
But Honey Pie, there’s no fear there
As you hunker down in the ‘safety’ of the Dow
But there's panic like a deer in car lights
Even Goldman, Citi and the buy-side
I wonder to myself

Sell all your Cisco, yank your SPY at VWAP
Because the forecast the BLS makes
It says nothing to me about my life
Dump your blessed long plays
With all the nonsense the Fed has been saying

As the lead Wall Street funds slip down
Existential frowns all ‘round
Sell your EBAY, Sell your EBAY, Sell your EBAY (3X)

FANG trades DK’d, FANGs are DK’d
FANGs are DK’d, FANGs are DK’d
FANGs ...

Keltner Channel Surf Juggernaut x2 Mon, 03/19/2018 - 16:28 Permalink

That 'mystery' was a standard VWAP algorithm, first initiated with a volume burst around 1:30 (most salient on short-term charts), then another 'booster' shot ~2:30 to take us home by 4:00. 

Other than the QQQs, volume was average or less, allowing this key intraday level, a 'breakeven' point of sorts, to be hit rather easily, likely only because Powell's first presser is on tap in a few days ...

Profit takers at the 50 DMA on COMP, QQQ AND IWM (how convenient), as well as SPY 100 DMA/2.0 Bollinger, also helped.  Note further that SPY rebounded precisely to the 1.0 exponential Bollinger, not from 'someone', but many, many MEAN REVERSION machines.

(RUT traders will note IWM's even larger rebound, likely from COMP and QQQ holders finding a new home for jettisoned funds, so their precious overall 'high beta' equity allocation pre-Powell wouldn't be diminished, an annoying yet common occurrence.   IWM's always a 'little brother,' too young to drive himself, often dragged to the mall by big Sis SPY/COMP, but when he does manager to steal the keys, it's clear he hasn't yet learned the purpose of the brake pedal ...)

In reply to by Juggernaut x2

Squid Viscous Keltner Channel Surf Mon, 03/19/2018 - 16:49 Permalink

nice monday morning QB, but index's were nowhere near VWAP until very late pm, almost at the close for IWM and Qs

so, by your definition of any ramp is a "get me closer to VWAP" algo?

ok ... and when the SPY bounced off 100 day, that's profit takers? maybe on the short side is what you meant,

seemed more like dip buyers like last 9 years... but maybe the whole paradigm has shifted

"market buoyed by short profit takers"

read all about it!!

In reply to by Keltner Channel Surf

Keltner Channel Surf Squid Viscous Mon, 03/19/2018 - 17:00 Permalink

I love you Squiddy (I'm not kidding).    SPY, COMP & QQQs ended at VWAP -- they don't all wait till the precise penny to sell, but dump what they can all the way up.

VWAP moves are often triggered (and signaled by) initial volume bursts in the 12:45 - 1:45 area, and how long, or if, they get there, is dependent on non-VWAP players, late selling from retail mutual fund pre-2:00 orders, etc.  Funk is wrong, NOTHING is pre-ordained.

My point was that less than crazy volume (pre-Powell) likely allowed this to happen successfully today, unlike a few weeks ago.  It's always gonna be after-the-fact Monday QB stuff -- traders will get in after lunch based on various signals, but NO ONE can say for sure what'll happen a few hours down the road, so every 15, 30 or 60 mins, the situation is reassessed, stops adjusted, etc. Get it?    (Not 'off the lows' days are often from VWAP-pers getting their clocks cleaned. )

EDIT:  Yes, as shorts are closed by BUY orders, VWAP-pers were aided by closing orders, especially after a full-trek of an entire volatility envelope in SPY in just a week.  Major Daily MA's and envelope limits ALWAYS have major mean-revert opening/closing orders congregating nearby, so it usually takes outsized volume or 'big news' to break-thru on the first attempt.

In reply to by Squid Viscous

enf83 Mon, 03/19/2018 - 16:06 Permalink

In the news

Couple Commits Suicide After Their Parents Tried To Separate them:http://enternations.com/thread/548/couple-commits-after-parents-separate

Man dies while trying to steal from a transformer:http://enternations.com/thread/549/man-dies-trying-steal-transformer

 

Airport staff member get punished for being too handsome: http://enternations.com/thread/528/airport-staff-member-punished-handsome

Girlfriend saves her lover’s life by cutting his throat: http://enternations.com/thread/522/girlfriend-saves-lover-cutting-throat

Woman dies after husband uses mortar bomb as sex toy:http://enternations.com/thread/499/woman-dies-after-husband-mortar

Father Joins Son To Rape His Young Daughter:http://enternations.com/thread/445/father-joins-son-young-daughter

Endgame Napoleon silverer Mon, 03/19/2018 - 18:03 Permalink

Y’all are making me feel sorry for the Zuck, ganging up on him like you are, and I do not use his product. Even the Dems go after him, mocking him on the MSM, like he was Republican. It is like they are colluding behind the scenes to do a run-Bernie-off-of-the-stage thing. That is not the right way to debate. These companies should not violate the Fourth Amendment, no, but the whole internet has similar privacy issues. I can understand the Republican stance more since FB has been accused of de-facto censorship of conservative sites, but why the Dem / Rep / Uniparty anti-FB alliance, weird? What would motivate this strange-bedfellow troika? Concern for the US Constitution is a Johnny-come-lately thing for most of these Swampers. 

In reply to by silverer

Peak Finance Mon, 03/19/2018 - 16:10 Permalink

Bought Oil Credit Dip (Again)

Social Media / New Media Shorts I opened last week already up 3% (Letting this trade ride for better or worse lol)

Many more shoes to drop in his Social Media / New Media space! All of the Fraud and political intrigue here in this media space, the piper has to be paid sooner or later.

Generally still BTFD

Endgame Napoleon Peak Finance Mon, 03/19/2018 - 18:10 Permalink

No one except Bannon ever discusses the really important economic factor: the limited job creation for US citizens in tech. Bannon points out the lopsided ratio of value of the stock from these companies versus the handful of Americans they employ, with the largest tech employers having a non-tech component of their workforce, like warehouse workers and drivers who might be displaced by bots and drones.   

In reply to by Peak Finance

Nuclear Winter Mon, 03/19/2018 - 16:10 Permalink

Well, for the failing Hedge Funds in the tank for this year, it's time to SHORT the biggest canine fang of them all: Facebook.

FB will continue to be exposed as the government siphon of US citizens data, abusing and whoring users' data, and censoring free speech with points of view that don't meet the Suckerberg and executives' Socialist ideology.

Cha-ching!

DillyDilly Mon, 03/19/2018 - 16:24 Permalink

Tim Cook (gay, probably 'diddler')

Zuckerberg (nuff said)

Joogle (nuff said)

Reed Hastings (SF relocated cuck) also board member of FB

 

Yeah, since the HOPEY CHANGEY days, snowflakes, cucktards, & pussy hatters have been pinning all EVERYONES hopes on that to usher America in to the future.

 

It's OVER (for that future).

Melgibsonyells… Mon, 03/19/2018 - 16:38 Permalink

Yo dudes at zerohedge. Instead of creating a post with the same d*mn animal house vid you use to express panic in the streets how about getting one of your hip writers to write about the SNB today. How is the Swiss central bank fairing with their big chunk of FANG paper?

 

Now that's a scoop I want to read about.

corporatewhore Mon, 03/19/2018 - 17:01 Permalink

What was Chuck Schumer's quote about deep state?  Something about a million ways to take you down? 

Thow that into the mix when all else fails to obtain objectives