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Final Stock Volume: 32% Below Average, As Buysiders Dump Corporate Bonds En Masse

Tyler Durden's picture




 

Virtually all other times when stock volume was as pathetic as today's in recent history, were holidays. The chart below speaks for itself.

One place where volume however was quite high was in the corporate bond market... where the buy side was dumping both IG and HY bonds to dealers, and an emphasis on the biggest junk.

Even as the idiot algos continue bidding up stocks like headless chickens on no volume, real money is quiently shifting out of all fixed income risk. Next up: equities.

 

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Mon, 06/20/2011 - 16:09 | 1386174 Boston
Boston's picture

Yup, and only 7 more days of QE.

Tick tock....

Mon, 06/20/2011 - 16:44 | 1386319 So Close
So Close's picture

Last one out turn off the lights and lock the door.

Mon, 06/20/2011 - 16:46 | 1386327 Yancey Ward
Yancey Ward's picture

There is no door.

Mon, 06/20/2011 - 16:51 | 1386354 Cognitive Dissonance
Cognitive Dissonance's picture

And soon there will be no lights. Time to frighten the little piggies off to slaughter. 

Mon, 06/20/2011 - 17:23 | 1386458 carbonmutant
carbonmutant's picture

That's mostly for people still on the Grid.

 

Mon, 06/20/2011 - 16:50 | 1386361 andybev01
andybev01's picture

...and someone took the copper wiring from the light fixtures already.

Mon, 06/20/2011 - 16:12 | 1386177 TruthInSunshine
TruthInSunshine's picture

I wonder how all the baghold....err, I mean bond holders of roughly 1% yielding 3 year or so corporate issuances (think IBM) are going to do when Bernanke loses control (feel free pick the method of his demise; it's sooner rather than further, and for what could be dozens of reasons)...

...not to mention treasuries.

...don't even get me started on junk bonds issued in the prior 30 months.

One minute video proving Bernanke legally perjured himself:


  Bernanke Impeachment

 

Mon, 06/20/2011 - 16:20 | 1386227 Ruffcut
Ruffcut's picture

The fed went political, so it makes lyin and cheatin, the norm.

BB speaks;

"I did not have sex with everyones wallet."

Mon, 06/20/2011 - 16:45 | 1386322 Fazzie
Fazzie's picture

 BB defends: It depends on the definition of "sex" and "wallet"

Mon, 06/20/2011 - 16:12 | 1386183 XRAYD
XRAYD's picture

Here is the answer:

 

Scientists have identified an Achilles' heel in HIV, the virus that causes AIDS, with a powerful mathematical method previously applied to the stock market ...  called random matrix theory. Developed in the 1950s to solve problems in nuclear physics, it has also been used to analyze the behavior of stocks by, among others, physicist Parameswaran Gopikrishnan, now a managing director at Goldman Sachs Group Inc. (With graphic) @

http://online.wsj.com/article/SB1000142405270230393670457639749158275739...


Mon, 06/20/2011 - 16:18 | 1386192 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Probably because HIV is as fake as the stock-market. Educate yourself:

http://www.houseofnumbers.com/

Watch here:

http://www.youtube.com/watch?v=_p-ttLfkZHQ

Mon, 06/20/2011 - 16:36 | 1386285 Franken_Stein
Franken_Stein's picture

 

HIV has been cured.

We did it here in Germany.

Ever heard of the "Berlin patient" ?

 

At the Charité hospital, one of the most reknowned in Germany, in Berlin,

they cured a man from the U.S., Timothy Ray Brown, who had both AIDS and leucemia, a common complication in the late stages of AIDS,

by removing his old bone marrow and replacing it with that of a person, that is immune to HIV.

 

About 1 % of the white caucasian population are immune to HIV.

Not many know that fact.

 

Here's the whole story, it was a big story all over here in Germany.

All newspapers wrote about it.

 

Here's the official link:

http://www.charite.de/charite/presse/pressemitteilungen/artikel/detail/p...

 

Here's another one:

http://www.ibtimes.com/articles/146949/20110517/timothy-ray-brown-berlin...

 

Mon, 06/20/2011 - 16:47 | 1386330 Fazzie
Fazzie's picture

 Could these blessed 1 percent sell bone marrow?

Mon, 06/20/2011 - 16:49 | 1386355 XRAYD
XRAYD's picture

See the 2nd link above.

Mon, 06/20/2011 - 20:10 | 1387016 Henry Hub
Henry Hub's picture

The really interesting thing about the percent of the population that is immune to HIV is the fact that these people are also immune to Bubonic Plague. The people with this immunity to HIV are the descendants of the people who survived the plague in the middle ages!

Tue, 06/21/2011 - 10:14 | 1388803 Rick64
Rick64's picture

FunkyMonkey,

 Thanks for the link. Very enlightning.

Mon, 06/20/2011 - 16:18 | 1386201 Cdad
Cdad's picture

Even as the idiot algos continue bidding up stocks like headless chickens on no volume

Aaaaaahhhh...I see.  I thought it was the hockey helmet wearing algos at work today.  You know, the ones coming out of Hong Kong, perpetually firing on half their cylinders.

My mistake.  

And isn't it nice how the BlowHorn [CNBC] is looking out for the little guy out there, warning him of the nature of this BS "melt up" rally today, of course criminally spun up on nothing by a syndicate of bankers...who really, really, really need to be laid off by the tens of thousands so that productive people can get back to work.

Real capital will not form under these circumstances, folks.  Everyone knows it.  I suspect, even Ben Bernanke.

Mon, 06/20/2011 - 17:03 | 1386382 sasebo
sasebo's picture

Right on.

And lets not forget when the stupid asshole politicians give the greedy, psychopathetic bankers the right to print free money in exchange for a few measly campaign contributions the right comes with free food, free clothing, free megamillion cars and houses all without working and lets not forget the right to allocate that free money to the companies & individuals they choose. Any body remember the housing bubble?

Mon, 06/20/2011 - 16:19 | 1386221 oogs66
oogs66's picture

Credit has figured out what juncker has not. Eventually Germany and France will take massive losses bailing out the piigs or they will bite the bullet sooner and let the private sector take some pain

Mon, 06/20/2011 - 16:25 | 1386234 omi
omi's picture

Wasn't Citigroup a significant portion of the NYSE volume pre-reverse-split? I assume after the reverse split, the volume would die down to 1/10th of the C allocation.

Mon, 06/20/2011 - 16:26 | 1386238 HungrySeagull
HungrySeagull's picture

Let em dump.

Just stay the fuck away from under that Failing Crane straining to hold the ever increasing weight high against it's own corroded and fatiqued steel structure.

Mon, 06/20/2011 - 16:28 | 1386253 omi
omi's picture

Just looked at the table you provided, it seems to me that there is rotation out of the higher end of capital structure into even higher and towards the equity. Look at the NR portion, if I'm reading it right, I'm seeing the ratio of 1.35 inflow to NR. So if the higher risk slices of capital structure are getting inflows, perhaps equipy would be getting more inflows as well.

Mon, 06/20/2011 - 16:31 | 1386257 swissinv
swissinv's picture

fixed income money will flow into commodities AND EQUITIES

as mentioned in an earlier post:http://www.zerohedge.com/article/investor-sentiment-battle-lines-are-dra...

I'm always sceptic with such tekni chart stuff, especially when not intraday and when such fundamental macro events going on like now. However, I indeed believe the stock market is going up because the money from fixed income markets is flowing into equities due to inflation and risk/return skew. The funny thing is that most people here believe in a hyperinflationary trend and rising commodity prices but on the other hand in falling equity prices. This is simply not consistent. A litte reminder from Weimar is that miner shares were the best performing asset classes and went ape nuts. You will see multi baggers and a hudge increase in market capitalisation in this small sector, overproportionaly affecting various indicies.

 

 

Mon, 06/20/2011 - 16:50 | 1386288 TruthInSunshine
TruthInSunshine's picture

Aha!

The old "there's a lot of money on the sidelines" theory made famous by so many sell-siders on CNBSc!

With only a slight twist.

"Well, Maria/Joe/Becky, with corporate bonds and fixed income paying little yield, I see a lot of upside in equities such as LNKD."

All this at a time when equities are paying extraordinarily low dividends, and most MOMOs (with many of those seem to have been getting shredded) pay none.

(This all assumes that master alchemist Bernank can keep yields from slip sliding away)

Mon, 06/20/2011 - 18:11 | 1386633 swissinv
swissinv's picture

Equities are one of the best performing asset classes when hyperinflation is coming. of couse nobody should buy crap like Linked In or Netflix but you can buy miners ($$$!) and blue chips like Nestle with reasonable valuation which will perform more than well if you're a long-term investors. my main concern with equities is rather custody risks than market risk. if there is systematic failure and some key custodian are getting busted you can wait a decade until you see your shares. with miners you ran into the risk of expropriation, thus I rather prefer Mexican than US miners.

Mon, 06/20/2011 - 16:26 | 1386265 Ned Zeppelin
Ned Zeppelin's picture

If HY bonds were being dumped, is that because of the perception that risk premiums post-Greece this week will rise.  I saw mention elsewhere here about the pecking order being something on the order of "first we price the sovereigns, then we price the rest," and if the sovereigns are paying credit card rates, what does that telll you about the future for corporate rates, or - shudder - the 10 year, which right now is low on a presumed flight to safety trade.

Mon, 06/20/2011 - 16:30 | 1386266 omi
omi's picture

Just looked at the table you provided, it seems to me that there is rotation out of the higher end of capital structure into even higher and towards the equity. Look at the NR portion, if I'm reading it right, I'm seeing the ratio of 1.35 inflow to NR. So if the higher risk slices of capital structure are getting inflows, perhaps equipy would be getting more inflows as well.

Mon, 06/20/2011 - 16:27 | 1386277 Ned Zeppelin
Ned Zeppelin's picture

yeah but why? Is this a good time to buy equities? I don't see it.

Mon, 06/20/2011 - 16:38 | 1386312 buzzsaw99
buzzsaw99's picture

Even as the idiot algos continue bidding up stocks like headless chickens on no volume, real money is quiently shifting out of all fixed income risk...

JNK and HYG were solidly green today.

Mon, 06/20/2011 - 17:01 | 1386390 RobotTrader
RobotTrader's picture

Hi flyers like SINA, GOOG getting utterly destroyed, day in, day out.

That is why I don't dare touch those screamers.

Mon, 06/20/2011 - 17:16 | 1386448 Dirtt
Dirtt's picture

Destroyed.  100 shares for $48,500? Next.

Tue, 06/21/2011 - 01:10 | 1387955 mt paul
mt paul's picture

want 100 more....

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