Stocks Ramp, PMs Ramp More, Oil Ramps Most

Tyler Durden's picture


The world and their mum will be overjoyed all is fixed again in Spain and Apple can be bought safely as today's ramp-a-palooza in risk-assets indicates. However, the 100-pip run in EURUSD which 'correlated-ly' ramped everything did more damage than good in the long-run as Oil prices surged off their 'see QEternity inflation is only transitory' way. WTI topped $92 (up over 3% off yesterday's lows) as Gold and Silver surged on the day to end up around 0.25% on the week (in the face of a 0.25% strengthening in the USD on the week). JPY strength and moreover EUR's push dragged the USD 0.5% lower from yesterday's peak and provided just the lift to get the S&P back to Monday's lows, filled a gap in AAPL's chart and lifted the financials ETF briefly back up to unch from pre-FOMC. Volume and trade size was large as we ramped and drofted once we topped - which smells a lot like pros seling into a stop-run-driven strength. Equities pulled back into the close (even as VIX limped back under 15% down almost 2 vols today) catching down to risk-asset's slightly less ebullient perspective.


Gold remains the winner of the major asset classes this week as USD strength led stocks lower into the close...


The S&P 500 futures market saw a major push in delta (cumulative 'buying' volume bias) as we tested back down below the FOMC lows but no follow through. As we pushed higher so average trade size rose notably (blue bars - h/t @eminiwatch) - and some decent volume right at the close too...



And while WTI had the biggest day, Gold and Silver are still enjoying the week - despite USD strength +0.25% on the week)...



Treasuries ended the day 2-5bps higher and steeper in yield.

VIX fell around 2 vols - back under 15%.


Risk-assets (proxied by our CONTEXT indicator below) rallied up to equities in the European session - were very highly correlated for most of the morning until after the EU Close and Spain started talking - then trod water while stocks popped and dropped...


Charts: Bloomberg and Capital Context


Bonus Chart: AAPL Again - filled it's gap and pushed up to try for the closing VWAP from Tuesday's big dump AND today's closing VWAP coincides with Tuesday's closing price - what wonderfully coincidental markets we trade in...

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Thu, 09/27/2012 - 16:27 | 2836647 4Y_LURKER
4Y_LURKER's picture

Go GO GOLD Bitchez!

Thu, 09/27/2012 - 16:50 | 2836732 SmallerGovNow2
SmallerGovNow2's picture

Must see, take two minutes to check this out...

Thu, 09/27/2012 - 19:42 | 2836914 Cult_of_Reason
Cult_of_Reason's picture

The markets rallied today thinking that Spain is ready to request "help" (ESM) tomorrow (according to CNBC FastMoney). The markets will be disappointed tomorrow.

ESM is NOT ready for anyone to request it anytime soon (and it is not clear if it will be ever ready at all).

Spain and Italy cannot request ESM because Germany demands IMF involvement + additional new conditions. Spain and Italy do not agree with such additional "conditions".

Watch this full Bloomberg TV interviewing Monti today, in particular starting at 1:95 and 3:95

Or this short interview version

Thu, 09/27/2012 - 16:31 | 2836651 Cognitive Dissonance
Cognitive Dissonance's picture


Glad to see they fixed the world...............again. Just don't look too close or you might not like what you see.

<hat tip to>


Thu, 09/27/2012 - 16:33 | 2836676 Caviar Emptor
Caviar Emptor's picture

Don't smell that milk. It's sour

Thu, 09/27/2012 - 16:31 | 2836667 Haager
Haager's picture

USD-strength... let's see: AUDUSD, NZDUSD, CADUSD...

Thu, 09/27/2012 - 16:37 | 2836691 JPM Hater001
JPM Hater001's picture

You forgot the FUSD

Thu, 09/27/2012 - 17:09 | 2836781 4Y_LURKER
Thu, 09/27/2012 - 16:32 | 2836671 HedgeAccordingly
HedgeAccordingly's picture

ebb and flow - where is Aubrey McClendon's neice when we need her -

Thu, 09/27/2012 - 16:33 | 2836673 Winston Churchill
Winston Churchill's picture

Last day of trading  for September.

My crystal ball foresses a massive PM attack in the morning,else the cartel is broken.

Thu, 09/27/2012 - 17:38 | 2836849 Rainman
Rainman's picture

Exactly.....those quarterly fee percentages get charged on a higher value. Simple arithmetic. Flush it out later and repeat over and over.

Thu, 09/27/2012 - 17:59 | 2836896 beachdude
beachdude's picture

Good Lord, Winston, I hope your pos crystal ball is f'd up!

Thu, 09/27/2012 - 16:33 | 2836675 GtownSLV
GtownSLV's picture

Calls for a celebration.... Ben circle the copter back around, more QE for everyone.

Thu, 09/27/2012 - 16:35 | 2836681 walküre
walküre's picture

Buyers of VIX got scalped today. This is what the market is about. No gains unless you're in the driver's seat. Don't kid yourself and think there's a buck to be made. The glory days of trading are over. This is NOT a return of the 2009 - 2010 market. It will seesaw from here on end until the last idiots have given up. There is no money to be made here. But keep on trying until you go cross eyed.

Thu, 09/27/2012 - 16:35 | 2836682 Caviar Emptor
Caviar Emptor's picture

We're living a biflation miracle! As Ben pulls in one direction, the gravitational pull of the downsized economy pulls in the other

Thu, 09/27/2012 - 16:40 | 2836700 JPM Hater001
JPM Hater001's picture

Agreed.  What I still fail to no one looking at the economic numbers?

Even a permabull would say we are at the very least leveling out.  But today looked more like the data was a slingshot ready to fire to the stratosphere.

Watch out Goliath is all I have to say.

Thu, 09/27/2012 - 16:50 | 2836729 disabledvet
disabledvet's picture

Well ever since Romney pulled even in the polls the market has surged. I know I saw it coming which is why I stayed long...

Thu, 09/27/2012 - 16:40 | 2836701 caimen garou
caimen garou's picture

yep, the world is wonderful!!Liz c has her hot red dress on today! growth is everywhere! just cant figure out what that growth is,looks like some kind of fungus.

Thu, 09/27/2012 - 16:52 | 2836736 Winston Churchill
Winston Churchill's picture

Mold, must be all that Chinese drywall.

Thu, 09/27/2012 - 16:44 | 2836703 Zap Powerz
Zap Powerz's picture

Who cares about gold, oil and junk like that?  Did you guys get your free Obamafone?  Now THAT shit is for real yo!

edit: Obama-fiz-one .....izzle

Thu, 09/27/2012 - 16:51 | 2836733 thomasincincy
thomasincincy's picture

6 months or so ago, I was handed an application form from someone. I couldn't believe what I was reading. and he got it from a visa worker I think. Refer to Thomas Jefferson on what he thought would or could happen in the future. It's on the door step 

Thu, 09/27/2012 - 16:42 | 2836712 RobinHood73
RobinHood73's picture

Its amazing what the FED Plunge Protection Team can do in the S&P and APPLE pit  with Taxpayer money. I bet you they could cause the price of rubber dogshit to lock limit-bid on a moments notice. Job creation you say? that's a different department. that would actually be diluting bank power by giving citizens back some....

Thu, 09/27/2012 - 16:54 | 2836740 knukles
knukles's picture

Many years ago me and a syndicate of buddies tried to corner the rubber dogshit market on the CBoT until the CC unexpectedly doubled margin requirements.  We folded.  The positions were assumed by the FRB Chicago and have been rumored to have wound up as the milky centers of many of the gold coins currently being pedaled by any number of central banks

Thu, 09/27/2012 - 16:43 | 2836714 slaughterer
slaughterer's picture

Homer Simpson's thoughts about today: "Growthless planet--only growth is in debt--but now debt is used to pump market almost directly--mindless BUY--gotta save the pension funds and boomers somehow--otherwise we have a mess on our hands--Bernanke BUYS ugly assets--why not mine?--mmm, donuts."

Thu, 09/27/2012 - 17:12 | 2836789 worbsid
worbsid's picture

DJIA trading volumn below 3 month average which was very low to begin with.  I guess the only ones trading were the algos and someone had the plus sign switch on.

Thu, 09/27/2012 - 17:41 | 2836865 FiatFapper
FiatFapper's picture

That's a dubious and subjective linear regression channel on SP chart. The beauty of trading is that for every picture, there's a million interpretations...just the way they want it.

Thu, 09/27/2012 - 19:10 | 2837063 chump666
chump666's picture

The meltup had nothing to do with Spain, it was a flow on from the China liquidity pump, probably the last major central bank going all in...and what do we get? A slight rally.

Spain will leave the Eurozone, or Catalonia will, or Spain will go all civil war again.  Nice, the cycles of history repeating.

Market is stretched and looking perilously like a major sell is coming.

Thu, 09/27/2012 - 19:31 | 2837107 Cult_of_Reason
Cult_of_Reason's picture

It was end of quarter (and for some funds end of fiscal year) mark up using Spain B.S. as an excuse for mark up.

It will not stick.

Thu, 09/27/2012 - 21:19 | 2837284 chump666
chump666's picture

Yeah end quarter trades too, you are right.  But, watching Asia now is always a very good risk proxy when market's open.  USD bids, and I think China will sell after their goverment PPT melt-up.  So marked up distribution trades to suckers, this is where the Fed's (people with excess cash  - neg interest rates, will be fleeced in the stock market i.e volatility) pitiful argument on trickle down crapola fantasy begins...and ends.

It's a beautiful world.

Thu, 09/27/2012 - 21:20 | 2837340 adr
adr's picture

Wow, the guy caused oil to jump $1.50 in 2009. It does that nearly every morning now, and mulitple times during the day. 

Fri, 09/28/2012 - 09:57 | 2838515 Grand Supercycle
Grand Supercycle's picture

Longs please be careful.

Due to recent central bank intervention and short covering spikes, these daily charts are extremely overextended and significant correction expected very soon:


Do NOT follow this link or you will be banned from the site!