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Volumeless Ramp Leaves Stocks Adrift In Election Bliss
With S&P 500 futures volume around 25% below average, it is little surprise that the little-algos-that-could did their damnedest to get up to Friday's closing VWAP. Equities were in a world of their own today relative to broad risk assets with high-yield credit lower, volatility up, and rates lower - seemingly supported by its correlation with oil (which managed to pop over 1% on the day to almost $86). Utilities were hurt the most as QE-sensitive Materials, Energy, and Tech managing to outperform as AAPL levitated from lower lows ($570) pre-open to bring today's price up to Friday's closing VWAP and that's where we wriggled most of the day, with every rally faded at that magical level. Whether investors were placing chips last minute into the election is unclear (Energy outperformance, Financials unch, and Utility underperformance possibly suggest Romney victory and split house?) but certainly conviction was low as evidenced by volume and pre-ramp ranges. Despite USD strength, Gold and Silver also outperformed on the day as Treasury yields dropped 2-4bps.
The S&P ended the day at resistance half-way between Bernanke's Bottom and Draghi's Dream levels...
Risk assets were a little mixed - commodities rallied risk-on-like, Treasuries and USD were more risk-off mode, and credit and vol were in risk-off mode. Summarizing into a single-indicator, the following chart show that ETFs (left) were very much less sanguine than stocks today and broad risk-assets (right) went nowhere as stocks levitated...
Only oil was moving along with stocks as they surged away from the rest of reality in the last hour...
and as the USD leaked higher by 0.22% on the day, so Gold and Silver ignored it and also rose...
Charts: Bloomberg and Capital Context
Bonus Chart: AAPL amazing levitation to Friday's VWAP...enjoy...
And Zillow cut its outlook - 27% later...oops...8-month lows...SAC's recently added 838k shares probably feeling a little queasy right now... (and Citadel's 790k shares)
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Oh good they ramped Apple so Im sure Rochdale and Bove can stop whining for $1 billion free dollars now.
In other market news...same old shit, get on those oars and ROW, damn peasants!
An AAPL a day...
Shit, i thought 15% was monkey hammering territory.
Z is hung in the pile driver being driven to refusal..
Its the housing recovery stupid
Ultra low inventory helps paint a rosy picture for prices but Zillow needs volume to make money.
Like I wrote earlier this is truly stoopid and retarded, I dont even care that im trading well, giving it to red cross
bullshit lives for another day, to be seen if it can survive tomorrow.
Saw that the homebuilders were all up big again. Must be nice to see your stock increase 100% in 9 months on the back of absolutely nothing. Here I thought you actually needed to finish your product to make money. Fuck, I should just claim my company is going to start making 10 million units, yet never finish production and push for an IPO. Much easier than having to sell product to 100 different buyers.
You sound like a venture capitalist.
A little late to the party but he is learning .....
Time to shut the wells down with the oil price this low.
Better just to turn the de-deflationary presses on.
They need to re-fill the SPR now. Wells need to stay on harder. The government pays top dollar.
I hear all that free FED money is a great energy source, burns well....who needs oil?
Is "leaking" the only verb allowed in these articles? Can't prices rise, fall, move, hold, melt, skyrocket, plunge or soar anymore?
Seep
Does 'monkey-hammered seem just a tad bit overused?
I am surprised the markets did not go higher today just prior to the election. Something is amiss.
Agreed. You know something is amiss when Friday's bullshit NFP beat sent the markets down.
The markets WILL finish green, today and probably tomorrow, no matter the cost. Can't have voters depressed on election day, now can we.
Who even pays attention to stock markets anymore? Everyones broke.
They may want to consider that stock market pumping actually pisses most everyone off now.
They do pay attention to crashes. MUST... STAY... ABOVE... 1400... FOR... ONE... MORE... DAY. Bet they dont make it past Friday.
Tomorrow, the PPT will be put into overdrive.
Three cheers for the plunge protection team!!!
Dow north of 13000 for the election!!!
Mission acomplished!!!!
Dow equals 420 ounces of silver.
I'm calling that the top.
now I can't get the PM Dawn song that the title is alluding to out of my head-great song though. also-coal stocks will rip if Romney gets in.
It was called "True" by Spandau Ballet before the talentless hacks wrecked it by talking oer it.
PM just sampled "True" by Spandau-the actual lyrics are in the PM song and nowhere in the Spandau song. actually the song was ok and it loosened the honeys up.
http://www.youtube.com/watch?v=Q5lByFc7HiM
Another muppet-slaughteromat.
They will crash this bitch just to get rid of obumer.!!!!
Crash? Huh? We are only a few percent from multi year highs. A crash is what happened in 2008 that got Obama elected.
you said "Bernanke's Bottom." eeeyyuuuuuuuuwwwwwww
Everything up. ViX up. It is a race to explosion. A preamble to the bombs bursting in air. Its a premonition to a meteor shower. A nuclear cats trophy and I'm goin joggin.
How convenient for Barry that crude decided to find a bottom right before the elections.
OBAMA WINS.
...says prediction markets
http://stks.co/oDst