Manic-Buying Turns To Panic-Selling As ‘Illiquid’ Stocks Plunge To 5-Month Lows

And ‘somebody’ surely made a lot of money with some put options like on 9/11.


Manic-Buying Turns To Panic-Selling As ‘Illiquid’ Stocks Plunge To 5-Month Lows (ZeroHedge, Oct 13, 2014):

Just as we warned, liquidity was incomprehensibly low today (below normal pre-market levels during the peak of the trading day) and the intraday whipsaws were meteoric as a closed cash bond market enabled the slightest twitch in USDJPY to send S&P algos into conniptions. Biotech crashed. Trannies were ripped ridiculously higher at the open – then collapsed into correction (-11% from highs); US Airlines have fallen for 6 straight days, crashing 17% (with today’s 7% plunge – driven by chatter over airborne Ebola – its biggest in over years). Treasury futures implied a notable drop in yields across the curve (10Y -7bps at 2.21%, 30Y 2.97%, and 5Y 1.45%). The USdollar closed -0.33% led by EUR and JPY strength (but AUD surged 1% extending gains after China data).  Gold ($1234), Silver, and copper all gained on the day as WTI fell once again (despite some intraday strength in the middle of the day). Stocks “flash-crashed” on very heavy volume in the last 30 mins with VIX breaking above 24 (highest in 16 months). All major equity indices are now below their 200DMA with the worst 3-day loss since late 2011.

1 thought on “Manic-Buying Turns To Panic-Selling As ‘Illiquid’ Stocks Plunge To 5-Month Lows

  1. Liquidity, that will be the real problem. The fools have been leveraging, not once or twice, but in the thousands…..thanks to no regulations or oversight. The market is as crooked as it was in 1919, and using technical tools, have been able to make people appear to be worth hundreds of millions while in fact, they are worth a sliver of that. With the market reacting downward, the margin calls are everywhere.

    The market is sliding as I write this….heading for negative territory once again. The talking heads are talking about deflation……..they don’t know what is going on…..deflation would really screw the wannabe real estate investors…….but, they don’t know what is coming. We have never had such debt levels before…..1000:1, etc. It is sheer madness.

    Now, the financial channels are covering the “Ebola crisis”, they don’t want to talk about the markets……

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