ES Once Again Rapidly Diverging From Everything Risky

Tyler Durden's picture

And so the broader risk basket of AUDJPY, EURJPY, 10Y, 2s10s30s, gold, and oil once again rapidly diverges from the ES, which must mean that Citadel is busy processing FRBNY trade tickets on a FIFO basis. Expect the spread to close (buy the basket in a pro rata basis for an intraday correlation catch up), or not: all depends on just how aggressive Brian Sack is to indicate that life is good, wealth effect is wonderful, and the rapture is overblown. Bottom line: either play both legs outright in a pair combo, or sell ES for a FV 4 points lower.

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firstdivision's picture

Operation Bag Holder is in effect.

LawsofPhysics's picture

Okay, who is holding the bag if this is a basket of fiat?

RobotTrader's picture

Another U-Turn in stocks today.

Gotta grab your short profits fast, or the crocodile will snap his jaws shut and take your hand.  LOL...

S & P 500 is the envy of the world, pretty much outperforming everything.

Want proof?

It is about to breakout to new highs for the move in many foreign currencies.

SPY in Foreign Currencies

Yep, and the same with gold:

Gold in Foreign Currencies

My "Formula" remains 100% correct.

Gold $1,650 = Dow 14,000, and vice versa.

Now, if only my horrid gold stocks would get out of the gutter, maybe I can sell them and finally move out of this flea-infested 400 sq. ft. studio apartment overlooking the smoggy 101 Freeway....LOL...

Sophist Economicus's picture

I don't disagree.  Fund managers, pensions, etc that are also worried about potential hyperinflation view the S&P and DOW as their safety net to maintain currency parity.

IMO, When the dust settles, both Gold and the major US indexes will be much higher in nominal terms -- and Gold will be higher .vis a vis. the indexes in real terms too....

LawsofPhysics's picture

Why won't silver also go along for the ride?

GoinFawr's picture

"Now, if only my horrid CHOICE of gold stocks would get out of the gutter all the people who bought in for the doubles, triples, quadruples and five baggers in that sector will stop laughing at me." There, fixed it for ya; you're welcome, though admittedly that last part is unlikely, given your record.

Abitdodgie's picture

I had a friend who lived in that area he said he was Silverlake adjacent, and he lived on Normal Ave .

geminiRX's picture

Summer doldrums approaching, which likely doesn't fare well for gold stocks (should be buying instead of selling). Although I do find the unusual call options on Kinross interesting today - perhaps it is getting set to bust out of it's evil channel (then I could make some mulla too)

SwingForce's picture

You rock, BKX proves INTL traders in driver's seat- they must love DOW stocks.

buzzsaw99's picture

Time to go all-in 3X long on a basket of Japanese banks bitchez!

buzzsaw99's picture

Tepco CDS too. And Euro banks, and PIIGS bonds. They're a steal! ;)

LawsofPhysics's picture

Remind me why global currency devaluation won't fix this spread?

TapeReader's picture

Substantial buy program order flow momentum came into ES (S&P 500 e-Mini future) at the recent low onthe 17th.

The overall order flow momentum flipped to the sell progam dominance yesterday and has remained that way throughout today's session.

You can monitor order momentum in real-time (for free) for ES swing trading here

and for ES day trading here

Hope that you find this as interesting as I do.



earlthepearl's picture

THNAK YOU for this post, fucking awesome

silberblick's picture

Japanese governments FAQs for People Living Outside the Fukushima Evacuation and In-house Evacuation Areas

Click the link below to read an incredible work of misinformation that will surely--at a future point in time--become forensic evidence used in a lawsuit against TEPCO and the Japanese government for criminal negligence.

By using this document, the Japanese government is trying to talk down the Fukushima problem and assure people that there is absolutely nothing to worry about, which we know is total hogwash because even small dosages of radiation are said not to be safe (and the dosages Japanese are getting are NOT small). Some of the goggle translated 22 FAQs and answers include (read here):

Dollar Bill Hiccup's picture

Thou shalt have EURUSD 1.42 for Friday. And though shall not see the SPX wither upon the vine, though shalt see the AUDJPY move in perfect synceth with the SPX.

And Lloyd saw it, and it was good.

-- The Book of Lloyd, Chapter 4.

qussl3's picture

Full retard.

Silver not ramping up with equities is the tell.

Not long before the pigmen are fully positioned short.

jesus_quintana's picture

Tyler - how are you calculating your ES basket? Thanks

MiningJunkie's picture

PPT went to work at 11:00 a.m. EST and decided that we need a "strong close" in order to massage the "wealth effect"...


slaughterer's picture

"...either play both legs outright in a pair combo, or sell ES for a FV 4 points lower."

I sold ES as soon as I read this, Tyler, but I am not buying gold for the catch up.  Let's see how this closes today.