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Like A Swiss Watch The Daily Risk Spread Divergence Is Here, On Less Than Vapor Volume

Tyler Durden's picture


As of 30 minutes ago, the ramp in stocks which came out of nowehere, on now news, but is certainly going to generate a whole lot of FRBNY trade tickets over at Citadel, has managed to do absolutely nothing to restore confidence in the average man that the economy is not heading into redepression, but been very successful at causing the risk spread to surge to day wides. Historically the spread has closed promptly on high correlation days, although today's market action is so abnormally surreal it may be best to just step back and observe.

In the meantime, looking at volume... what volume. Not even vapors are forcing this stock surge into the stratospehere. But yes, manipulation is an overused word so no point in invoking it.


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Mon, 06/27/2011 - 14:37 | 1406128 Johnny Lawrence
Johnny Lawrence's picture

Buy the dip, says UBS!

UBS Weekly Guide: Upgrading our Equity Exposure 6.27.11

Mike Ryan (bio), Stephen Freedman (bio).

We seek to use recent market weakness as an opportunity to upgrade our exposure to risk assets by raising our equity allocation to a +6% overweight. We still look for equity markets to rebound during the third and fourth quarters amid a likely improvement in the cyclical outlook, still supportive policy backdrop, continued robust corporate profit picture, and .attractive valuations

Mon, 06/27/2011 - 14:50 | 1406167 Voodoo-economist
Voodoo-economist's picture

then hurry and sell!

Mon, 06/27/2011 - 15:13 | 1406252 malek
malek's picture

Even if it's not f'ing?

Mon, 06/27/2011 - 15:22 | 1406272 Johnny Lawrence
Johnny Lawrence's picture

I don't think the word "fuck" would pass compliance.

Mon, 06/27/2011 - 14:38 | 1406129 hugovanderbubble
hugovanderbubble's picture

Esto da mucho asco...


VWAP 1274...


Mon, 06/27/2011 - 14:38 | 1406134 Cognitive Dissonance
Cognitive Dissonance's picture

But yes, manipulation is an overused word so no point in invoking it.

Let's use a different word to describe low volume market pumps higher. Why don't we call it an "Accidental Stock Surge"?

Hey, accidents do happen.

Mon, 06/27/2011 - 14:46 | 1406151 hugovanderbubble
hugovanderbubble's picture


Italians, Spanish CDS accidental surges to new record highs...thats a curious bunch of accidents too:)

Mon, 06/27/2011 - 15:42 | 1406335 Translational Lift
Translational Lift's picture

These turds have no imagination....they pull this shit every time at 2PM unless someone falls asleep and then they do it at 3PM.

Mon, 06/27/2011 - 15:47 | 1406359 Cognitive Dissonance
Cognitive Dissonance's picture

Doesn't take much imagination to rob the same store on the same street at the same time of day every trading day. Nothing to worry about when the cops are always out to lunch.

Your only concern is when does the store restock from yesterday's robbery. Apparently it's 2 PM.........or 3PM when the delivery truck is running late.

Mon, 06/27/2011 - 16:03 | 1406405 SheepDog-One
SheepDog-One's picture

I dont know what to call it, as I cant think of anything worse than 'full retard' which we accelerated past long ago. 

Mon, 06/27/2011 - 14:40 | 1406136 Re-Discovery
Re-Discovery's picture

Yep.  Nurse Kratchet came in and handed out the anti-depressants to the boys.  No panic attacks allowed.

Extra dose for those who short commodities.

Tue, 06/28/2011 - 01:17 | 1407958 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

Nurse Ratched.

Pronounced Rat-shit.

Easy to remember from now on, yes?

Mon, 06/27/2011 - 14:40 | 1406144 buzzsaw99
buzzsaw99's picture

it was me, i bot an mini. [/sarcasm]

Mon, 06/27/2011 - 14:46 | 1406153 hugovanderbubble
hugovanderbubble's picture

Just one¿=:=)

Mon, 06/27/2011 - 14:51 | 1406164 buzzsaw99
buzzsaw99's picture

yep. get ready for a flash crash when I sell. lulz

Mon, 06/27/2011 - 14:47 | 1406175 hugovanderbubble
hugovanderbubble's picture

In spain we have a typical sentence-song: " Esto es un escándalo, Es cán da lo¡¡¡ Es un Escándalo" Song:)





Mon, 06/27/2011 - 14:55 | 1406198 buzzsaw99
buzzsaw99's picture

There was a scandal in the handle (betting pool) when I bet on El Caballo at Churchill Downs June 18th, that's for sure. ;)

Mon, 06/27/2011 - 14:43 | 1406155 schismjism
schismjism's picture

It looks like the market dynamics sniff of systemic collapse.....

Mon, 06/27/2011 - 14:47 | 1406158 shushup
shushup's picture

Volume has been irrelevant since the inception of QE1

Mon, 06/27/2011 - 14:49 | 1406166 hugovanderbubble
hugovanderbubble's picture
  • Imagine so, till where we have to retrace...
Mon, 06/27/2011 - 14:49 | 1406163 hugovanderbubble
hugovanderbubble's picture

Intraday Overbought

Nasdaq Puts intraday Oversold

Markets; what markets? what a Falacy...


Sell eod

Mon, 06/27/2011 - 14:50 | 1406169 Hank Paulson
Hank Paulson's picture

Just keep piling into CMG, LULU, GMCR, and can't lose

Mon, 06/27/2011 - 14:51 | 1406191 Boston
Boston's picture

What, no CRM?

Mon, 06/27/2011 - 14:50 | 1406172 Franken_Stein
Franken_Stein's picture


David Rockefeller is 96 years old, he was born in 1915.

Henry Kissinger is 88 years old, he was born in 1923.


Ash & sulphur.


Mon, 06/27/2011 - 14:56 | 1406192 falak pema
falak pema's picture

you have a problem with dodos...

Mon, 06/27/2011 - 15:12 | 1406249 Franken_Stein
Franken_Stein's picture


Isn't that a bird that went extinct ?


Mon, 06/27/2011 - 14:49 | 1406176 Everybodys All ...
Everybodys All American's picture

The Fed announcement of QE infinity with runoff capital ramps the market. Go figure the insanity of it all. Charles Ponzi is a piker compared to Bernanke.

Mon, 06/27/2011 - 14:58 | 1406195 djsmps
djsmps's picture

I had turned on CNBC at 2 pm just to check stocks, and in seconds the DOW jumped thirty points. Unbelievable. For no reason.

Mon, 06/27/2011 - 15:10 | 1406242 HelluvaEngineer
HelluvaEngineer's picture

The bots detected that CNBC's viewership had suddenly doubled.

Mon, 06/27/2011 - 15:18 | 1406262 sbenard
sbenard's picture

Best LOL of the day! Thanks!

Mon, 06/27/2011 - 15:32 | 1406286 Cognitive Dissonance
Cognitive Dissonance's picture


Prior to him only the eTrade baby was watching. Anyone under 4 years of age is counted as half a person unless they are watching reruns of Romper Room.

Wait......isn't that what CNBC is, Romper Room for day traders and algos?

Mon, 06/27/2011 - 15:02 | 1406212 dudley
dudley's picture

How about everyone has hedged their positions and now realizes that a Brady Bond solution has been in the works all along so there is some protection in stocks.  If it worked for S. America why not the PIIGS.  It is all a sham anyway.  If I am not mistaked even some of the PM investment companies are hedged in here.  Watch for them to ramp up Gold and Silver later today.

Mon, 06/27/2011 - 16:18 | 1406440 RockyRacoon
RockyRacoon's picture

Oopsie on that gold/silver thingy there, Dudley.

Mon, 06/27/2011 - 15:00 | 1406220 Re-Discovery
Re-Discovery's picture

These up days are like bad sessions of EST

"I am happy because I am happy"

Mon, 06/27/2011 - 15:11 | 1406246 Boilermaker
Boilermaker's picture

When do the masked pro-wrestlers show up on the floor of the NYSE wearing the trader jackets (but WITH mask, naturally)?

This is beyond words that they would even TRY this.

This has the absolute STENCH of a desperation Hail Mary that I'm actually scared.  Who would even possibly buy into this?  Why even attempt something this stupid?

Mon, 06/27/2011 - 15:08 | 1406248 sbenard
sbenard's picture

Wall St is having another Pollyanna Party!

Shush! It's really a disease called "hubris obliviana"!

Mon, 06/27/2011 - 15:09 | 1406251 slaughterer
slaughterer's picture

When and how will this divergence close?

Mon, 06/27/2011 - 15:13 | 1406259 RobotTrader
RobotTrader's picture

Unless gold gets over $1,500, this rally is going nowhere.

Banks like USB looking strong, if they follow through with more upside tomorrow, then maybe the SPY can get moving up and drag gold up kicking and screaming.

Mon, 06/27/2011 - 15:39 | 1406339 Everybodys All ...
Everybodys All American's picture

IMO I've got to think the dollar will strengthen and further weaken the hard metals. While both are weaker today ... one is a head fake. Which one time will tell.

Mon, 06/27/2011 - 16:00 | 1406388 SheepDog-One
SheepDog-One's picture

OH it all revolves around gold now, I see.

Mon, 06/27/2011 - 16:19 | 1406443 RockyRacoon
RockyRacoon's picture

Until it doesn't I guess.   He changes his mind a lot.

Mon, 06/27/2011 - 15:19 | 1406264 Rick64
Rick64's picture

Looks like a good short.

Mon, 06/27/2011 - 15:26 | 1406275 sbenard
sbenard's picture

Wow! That volume chart is abysmal. We haven't seen volume that paltry since last YEAR! A WHISPER has more volume!

Mon, 06/27/2011 - 15:28 | 1406293 slaughterer
slaughterer's picture

If we do not see some selling after 3:30pm today then this divergence will close overnight in the futures or early morning tomorrow.

Mon, 06/27/2011 - 15:35 | 1406323 sbenard
sbenard's picture

Thanks for the insight! Cheers!

Mon, 06/27/2011 - 15:31 | 1406306 cougar_w
cougar_w's picture

Vapor volume for the glue sniffers.

Mon, 06/27/2011 - 15:35 | 1406324 Cognitive Dissonance
Cognitive Dissonance's picture

Please, no snorting in public. Think of the kids for God's sake. They might want in and then you'd have to share.

Mon, 06/27/2011 - 15:47 | 1406340 plocequ1
plocequ1's picture

If that is Alec Baldwin, Say it isn't so so. Damn, Thats fugly !!

Mon, 06/27/2011 - 15:51 | 1406368 Cognitive Dissonance
Cognitive Dissonance's picture

It ain't so.

Lloyd Bridges: "Looks like I picked the wrong week to quit sniffing glue."

Mon, 06/27/2011 - 15:32 | 1406312 plocequ1
plocequ1's picture

Divergence. Is that like compression? 

Mon, 06/27/2011 - 15:33 | 1406315 LeftCoastRefugee
LeftCoastRefugee's picture

End of month window dressing.

Mon, 06/27/2011 - 15:40 | 1406331 Bam_Man
Bam_Man's picture

End of quarter window dressing too.

Gotta make those statements look nice so the sheep will feel rich and go out and spend.

Mon, 06/27/2011 - 15:35 | 1406319 Franken_Stein
Franken_Stein's picture


How many of you know that the Amish are of German descent ?

They still speak German, a variation of Hessian to be precise.


Do you know which newspaper was the first to print the announcement of  Declaration Of Independence on July, 5th, 1776 ?


A German one.

Der Pennsylvanische Staatsbote (engl.: The Pennsylvanian state courier), a local newspaper in and around Philadelphia.


The text read like this:


"Philadelphia, den 5 July.
Gestern hat der Achtbare Congress dieses Vesten Landes die
Vereinigten Colonien Freye
und Unabhaengige Staaten erklaeret.
Die Declaration in Englisch ist jetzt in der
Presse: sie ist datiert, den 4ten July, 1776, und
wird heut oder morgen im druck erscheinen."



For so long now us Germans and America, the new world, are linked.

Sorry that we provided the redskirts with some Hessian mercenaries.


We made you whole when we sent you General von Steuben, a Prussian General, who trained the Continental troops and wrote the Army handbook.



Mon, 06/27/2011 - 15:40 | 1406333 magpie
magpie's picture

An ancestor of mine was one of those guys, riding around headless with a longsword, like in that movie.

Though more likely he only got drunk in Canadian taverns, far away from the fighting, so the evil Yankees wouldn't enslave Canuckistan.

Mon, 06/27/2011 - 15:46 | 1406356 frugalman
frugalman's picture

Abbie Cohen says, according to CNBC, that economic growth will be reaccelerating toward the end of the year, and targets 1450 range in SP500.  Obviously, you can't make this stuff up.  The only way that could happen is if gold is well over 2,000.

Mon, 06/27/2011 - 16:40 | 1406479 cosmictrainwreck
cosmictrainwreck's picture

anybody notice it's always "next quarter" or "the second half" or "by eoy" or whatever.... this thing's gonna go, gonna get some some traction, gonna, gonna..... by then

Mon, 06/27/2011 - 15:50 | 1406360 Franken_Stein
Franken_Stein's picture


Here's another historic tidbit:


What do Bruce Willis and Olivia Newton-John have in common ?


Both wouldn't exist if it wasn't for Adolf Hitler.


Why ?


Willis is the son of a German mother, a war-bride if you will, and an American soldier stationed in Idar-Oberstein, Rheinland-Palatinate, as part of the occupying forces.


Newton-John, born in Australia, is the granddaughter of German-Jewish physicist and Nobel prize winner Max Born.


He fled the Nazis, first to the U.K, and then relocated to Australia.


Now you know it and went a little bit further down the rabbit hole.


Mon, 06/27/2011 - 23:51 | 1407806 StychoKiller
StychoKiller's picture

Just a couple of Grand Faloons...

Mon, 06/27/2011 - 15:59 | 1406378 Bansters-in-my-...
Bansters-in-my- feces's picture

It's that Voo Doo eCONomics..going on Again...

Mon, 06/27/2011 - 15:57 | 1406390 SeverinSlade
SeverinSlade's picture

Definitely possible when QE3 is implemented.


Mon, 06/27/2011 - 15:58 | 1406394 Bansters-in-my-...
Bansters-in-my- feces's picture
by Franken_Stein
on Mon, 06/27/2011 - 14:50



David Rockefeller is 96 years old, he was born in 1915.

Henry Kissinger is 88 years old, he was born in 1923.

The sooner these scum bags are off this planet,the beter...

Fucking piles of dirt.....oopsss...SHIT 

Mon, 06/27/2011 - 16:01 | 1406399 fonestar
fonestar's picture


Mon, 06/27/2011 - 16:03 | 1406408 Bansters-in-my-...
Bansters-in-my- feces's picture

Sorry Frank Stein...

It looks like you made the whole post that I copied and pasted.


I Bansters(BANKSTERS)-in-my- feces...added the last"the sooner these scum bags are off this planet the better" etc...

Just clearing that up...

Mon, 06/27/2011 - 16:11 | 1406414 SheepDog-One
SheepDog-One's picture

Got to fluff up the pillow cushions under the DOW before tomorrows Greek debaucle. I'd laugh if it all closed again well under 12,000, this stupid level we've been at for about 7 months.

Mon, 06/27/2011 - 16:20 | 1406444 Silverhog
Silverhog's picture

Build a dysfunctional recovery and this is what you get. People will even bet on a dead horse.

Mon, 06/27/2011 - 19:06 | 1406843 Everybodys All ...
Everybodys All American's picture

Bernanke says there will be no QE3 but what the hell is reinvesting all the Treasury rollovers when you said you would be selling the Fed balance sheet in the open market at the end of QE2. I guess if you're the Fed you just change your mind when you are constantly wrong. In our stupid financial media no one calls you out on it anyway.

Mon, 06/27/2011 - 19:04 | 1406860 chirobliss
chirobliss's picture

the ramp in stocks which came out of nowehere, on now news

End of quarter window dressing boys 'n girls, please pay attention.  Those fund managers have to keep the numbers up for the performance bonuses.

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