1000 DJIA Points In Past 5 Days And All We Got Was A 1.5% Move In The Market

Tyler Durden's picture

With today's volume over 30% below average (and the lightest since July), the week ended on an up note as the Dow managed to gain just over 1% having meandered well over 1000pts to get there. EUR closed off its best levels of the day but was the outstanding achiever and with credit markets closed (cash and CDS), it seemed the last hour saw major demand for high yield corporates as HYG surged (dislocating from everything) as perhaps it was the lever to try a late day ramp. Commodities surged with copper best on the day and Oil easily best on the week as Gold and Silver added around 1.5-2% on the week. The USD ended the week practically unch despite all the excitement.

Dowxtravaganza this week...

Ends with DXY almost perfectly unchanged.

In the CONTEXT of broad risk based drivers of equity movements we reverted quite astoundingly after extending too far up on Tuesday and too far down on Wednesday. We ended the week as we began - pretty much in sync.

But perhaps the best way to get some perspective on the day/week/month performance is to see where we have come from this year:

Gold is +16% YTD, The Long Bond +15% (plus carry), and the S&P 500 +0.5%. And where did all that equity underperformance come from? Not financials, Materials, or Industrials - that's for sure.

And while the last few months has felt incredible in terms of volatility (which it has), the moves are on par with 2008/9. It seems that 100+ moves in the Dow are standard now but we do note that the number of 300+ moves in the Dow are second only to 2008 - and we have 2 more months to go yet!

Chart: Bloomberg

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HedgeAccordingly's picture

tail wagging the dog.. do you want to play a game? globla thermo nuclear....

in a little red dress ?  http://hedge.ly/gFWVSm

oh_bama's picture


redpill's picture



Ron Paul gets more donations from the military than all other GOP candidates COMBINED.  He also gets more than the Commander in Chief himself.  What does that tell you?


Dr. Richard Head's picture

Dropped $500 today

Here are your transaction details:
Donation amount: $500.00
Transaction date/time: 2011-11-11 09:10:24
Transaction ID: x1x4x0x6x

Makes $1,103 for the year.  $2,500 the max donation for Presidential candidate right? Peter B. Lewis of Progressive Insurance somehow donated $5,000 directly to Obama though.

topcallingtroll's picture

Married couples can donate double.

GenX Investor's picture

Thanks for riding our newest coaster, Bat Out'a Hell!  Enjoy the rest of your week folks.

junkyardjack's picture

Would have had a better return if you put it in NFLX

alien-IQ's picture

Whiplash...it's the new "Black".

Ancona's picture

Volatility gives me a hard on. The wife loves it.

max2205's picture

Loks like Tyler cut and pasted from a post in may 2009. Just saying....rinse repeat going on.

GeneMarchbanks's picture

A ride.

The DXY being unchanged is incredibly bullish.

WestVillageIdiot's picture

But I love when oil is the best performer on the week.  Perhaps this will wake up the regular Joey and Janey Chardonnay that they are paying a huge price to allow the Wall Street criminals to continue to move the levers of power and steal massive amounts of money.  Only when they see $4 at the pump can they start to understand just how sick teh system is, how criminal the politicians are and how evil the money creators truly are.  I can't think of much else that will wake them up. 

ghostfaceinvestah's picture

Wait until they see $5 a gallon at the pump.

earleflorida's picture

or just wait a few months until 'chavez' kicks the bucket,... ?

on a lighter note - man,... that fidel is crafty,... ?

eg. 'brazil's ex-pres lula, now has throat cancer' ___terminal?
























hedgeless_horseman's picture



Want to get off the roller coaster?  Uncle Sam wants you to know there is plenty of room for your money in U.S. Treasuries.

Be safe.

Be patriotic.

There is no inflation.

ZIRP forever.

WestVillageIdiot's picture

And don't forget that as a patriotic American you have to love The MIC.  The military must have a shitload of PR people working for them.  It is easy to see that we are inundated with the "I must love the military" message.  Then I turn on the TV and see that North Carolina and Michigan State are playing a basketball game on an aircraft carrier.  WTF? 

topcallingtroll's picture

Panetta says we are gonna be attacked if we cut our defense budget ten percent.

hedgeless_horseman's picture

I am not too worried.  Although we only get two die to the attacker's three, we win all ties.

HungrySeagull's picture

The same carrier that buried Bin Laden at sea.


Those decks are so big you can probably have three football games going at once.

mind_imminst's picture

Hopium this week=technocrat money printers now possibly in charge of Greece and Italy= bid under risk assets. Back-up hopium=FED will be printer of last resort. No worries.

WestVillageIdiot's picture

"If we can clear our minds and understand that debt is not bad but necessary then we can build growth."
-  P. Krugman wannabe

rumblefish's picture

i"m getting my ass handed to me on my short positions.......eff the market and is puppeteers behind the scenses. eff you Ben & TIm. 

thedrickster's picture

Can't be short, can't stomach being long and can't stomach watching cash atrophy......now what?

centerline's picture

I dont have the stainless steel balls to play this market right now.  My father in law though is loving it.  He has so far called it quite well, straddling this monster and legging in and out with the moves.  Probably will get a tit caught in the ringer when this tape picks a direction (probably bullish) - but at this point I think he is playing with the houses money anyhow.

thedrickster's picture

Woulda, coulda, balls....apparently I have none. I was looking at a IWM Nov strangle back in late October and couldn't pull the trigger.



topcallingtroll's picture

Tell the dude above
50 percent vanguard conservative growth.
30 percent cash and or short term bond funds
20 percent gold.

You can probably keep up with inflation.
Hold your own in a deflation.....and....

forget the whole game and have fun with your life.

If you are feeling really frisky substitute moderate growth.

If you have money you dont need for ten years put it in EWZ. You will thank me for it.

thedrickster's picture

"If you have money you dont need for ten years put it in EWZ. You will thank me for it."

Ten years......seeing as though I am buried in PBR......I suppose I am now an investor.

topcallingtroll's picture

Yeah investing is so boring. I was born to speculate.

PBR is a nice spec play now with the war drums beating with Iran

lotsoffun's picture

be patient.  making .00% on cash still feels better to me than when the 20 - 30% drop comes (and this time it's not bouncing back)


Non Passaran's picture

I don't expect that large changes (not this year anyway), but 5 to 10% moves are likely.

I'm 50% cash now, mostly PM miners. 25% down this year, by the way :-)

Non Passaran's picture

Same here, lost a bunch by shorting on leverage this week.

I just hope the whole thing crashes and burns.

BlueStreet's picture

Does 'getting' a headache count for anything Tyler?

alien-IQ's picture

Oh, yeah...headaches are like...totally bullish.

luna_man's picture

For the simple fact, you are "short", is a tail, tail sign...



centerline's picture

I dont know about you folks, but watching this shit has been exhausting lately.  The pace at which the BS is flinging around is simply amazing.  The sheer volume of headlines, truthful or not, creates the illusion that something positive has actually happened.  When, in fact, nothing positive has happened at all.  Systemic risk is even higher now that it was a week ago.

quacker's picture

Oh it's stunning. You can literally put the pin in the calendar any time in the last 3 years and move 30 days further, and in any 30 day increment things are worse. Always less jobs compared to the growth in the workforce. Always more homes in foreclosure.

It is beyond belief. Remember the first year of the Obama administration, everything was about health insurance. Everything from Obama was about fixing that issue is the same as fixing the economy. Everything was about increasing coverage.


Yet the projection was for a 6.5 million INCREASE by now!

It was this huge crisis then, all we ever talked about. And here we are with 11 million people LESS covered than projected, and we don't even hear a single peep about it any more. Somehow it was this all consuming crisis then, and now we have 4.5 million people less covered by health insurance, but there apparently is no health insurance crisis at all now.

In late 2008 after the election we entered the world of the surreal - the Obam Era, and up has been down and bad has been good and fraud has been openly embraced and rewarded and the people have been openly and brazenly shit on and told to enjoy it ever since.


prodigious_idea's picture

Nothing like volatility to drive up equity option contract values.  Dance close to the door on expiry's and ring the cash register every week.  Fucking amazing.

Dr. Engali's picture

I'm curious about how much money Benny and the inkjets had to print to prop this pig up for that 1.5% gain.

common_sense's picture

Same for ECB, how many euro-billions must be throw into the system to held 6000 DAX and 2300 EURXX. Banks going down down down...


WestVillageIdiot's picture

But The Fed is not printing right now.


luna_man's picture

For Ben, it's cheaper to print!...Otherwise, there goes that "american dream".



HungrySeagull's picture

Ink? That's 500 per barrel. Use Oil instead, It's cheaper.

tahoebumsmith's picture

Kinda like all ponzi schemes....Gotta keep new people coming in so you can steal your share and make it look like everything is just normal. Their all suckers ralleys now, just remember that the house never loses and the Casinos just continue to get bigger and bigger.

Caviar Emptor's picture

Stox are just a barometer of loose monetary policy. But Fed is still boxed in with a foot on the brake. And without monetary stim stox will never run. The catch-22 is that if reckless money printing resumes stox will never keep up with the loss in dollar purchasing power. A losss because the house has the odds on this one. 

Non Passaran's picture

Yesterday and today I closely followed movements of S&P on 2 hour chart and it really looks like someone is painting nice TA pics for unsuspectful traders. Both yesterday and today the index moved perfectly alongside a rising channel (yesterday afternoon) and sideways (today) and it seemed so artificial.

Either way, I used today and yesterday to dump (at a significant loss) all positions except one PM miner that were losing money as I believe I'll be able to buy them cheaper in coming weeks.

The whole freaking thing is a farce. Just look at those headlines - e.g. Euro Climbs Versus Dollar on Optimism Europe Is Tackling Its Debt Crisis - what a joke...

luna_man's picture

Yesterday!...Where have you been?