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Volumeless Ramp Leaves Stocks Adrift In Election Bliss

Tyler Durden's picture




 

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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Mon, 11/05/2012 - 18:06 | 2949841 SheepDog-One
SheepDog-One's picture

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!

Mon, 11/05/2012 - 17:27 | 2949846 slaughterer
slaughterer's picture

An AAPL a day...

Mon, 11/05/2012 - 19:01 | 2950119 Stoploss
Stoploss's picture

Shit, i thought 15% was monkey hammering territory.

Z is hung in the pile driver being driven to refusal..

Mon, 11/05/2012 - 19:06 | 2950136 The trend is yo...
The trend is your friend's picture

Its the housing recovery stupid

 

Mon, 11/05/2012 - 21:13 | 2950485 DeadFred
DeadFred's picture

Ultra low inventory helps paint a rosy picture for prices but Zillow needs volume to make money.

Mon, 11/05/2012 - 17:30 | 2949853 larz
larz's picture

Like I wrote earlier this is truly stoopid and retarded, I dont even care that im trading well, giving it to red cross

Mon, 11/05/2012 - 17:31 | 2949856 adr
adr's picture

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.

Mon, 11/05/2012 - 17:41 | 2949884 LawsofPhysics
LawsofPhysics's picture

You sound like a venture capitalist.

Mon, 11/05/2012 - 17:46 | 2949891 Kitler
Kitler's picture

A little late to the party but he is learning .....

Mon, 11/05/2012 - 17:32 | 2949858 buzzsaw99
buzzsaw99's picture

Time to shut the wells down with the oil price this low.

Mon, 11/05/2012 - 17:47 | 2949895 Kitler
Kitler's picture

Better just to turn the de-deflationary presses on.

Mon, 11/05/2012 - 18:05 | 2949947 Quinvarius
Quinvarius's picture

They need to re-fill the SPR now.  Wells need to stay on harder.  The government pays top dollar.

Mon, 11/05/2012 - 18:05 | 2949951 SheepDog-One
SheepDog-One's picture

I hear all that free FED money is a great energy source, burns well....who needs oil?

Mon, 11/05/2012 - 17:32 | 2949859 vix is for kids
vix is for kids's picture

Is "leaking" the only verb allowed in these articles?  Can't prices rise, fall, move, hold, melt, skyrocket, plunge or soar anymore?

Mon, 11/05/2012 - 18:25 | 2949998 fuu
fuu's picture

Seep

Mon, 11/05/2012 - 19:10 | 2950147 Zadok
Zadok's picture

Does 'monkey-hammered seem just a tad bit overused?

Mon, 11/05/2012 - 17:40 | 2949882 GCT
GCT's picture

I am surprised the markets did not go higher today just prior to the election.  Something is amiss. 

Mon, 11/05/2012 - 18:06 | 2949950 Randall Cabot
Randall Cabot's picture

Agreed. You know something is amiss when Friday's bullshit NFP beat sent the markets down.

Mon, 11/05/2012 - 17:48 | 2949901 asteroids
asteroids's picture

The markets WILL finish green, today and probably tomorrow, no matter the cost. Can't have voters depressed on election day, now can we.

Mon, 11/05/2012 - 18:04 | 2949944 SheepDog-One
SheepDog-One's picture

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.

Mon, 11/05/2012 - 21:17 | 2950493 DeadFred
DeadFred's picture

They do pay attention to crashes. MUST... STAY... ABOVE... 1400... FOR... ONE... MORE... DAY. Bet they dont make it past Friday.

Mon, 11/05/2012 - 17:49 | 2949907 zorba THE GREEK
zorba THE GREEK's picture

Tomorrow, the PPT will be put into overdrive.

Mon, 11/05/2012 - 17:51 | 2949914 Silver Garbage Man
Silver Garbage Man's picture

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.

Mon, 11/05/2012 - 18:04 | 2949943 otto skorzeny
otto skorzeny's picture

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.

Mon, 11/05/2012 - 18:08 | 2949955 Quinvarius
Quinvarius's picture

It was called "True" by Spandau Ballet before the talentless hacks wrecked it by talking oer it.

Mon, 11/05/2012 - 18:24 | 2949996 otto skorzeny
otto skorzeny's picture

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.

Mon, 11/05/2012 - 18:29 | 2950015 Bunga Bunga
Bunga Bunga's picture

Another muppet-slaughteromat.

Mon, 11/05/2012 - 18:37 | 2950043 hedgehog9999
hedgehog9999's picture

They will crash this bitch just to get rid of obumer.!!!!

Tue, 11/06/2012 - 01:07 | 2950993 GernB
GernB's picture

Crash? Huh? We are only a few percent from multi year highs. A crash is what happened in 2008 that got Obama elected.

Mon, 11/05/2012 - 18:38 | 2950047 Frank N. Beans
Frank N. Beans's picture

you said "Bernanke's Bottom."  eeeyyuuuuuuuuwwwwwww

Mon, 11/05/2012 - 19:44 | 2950258 q99x2
q99x2's picture

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.

Tue, 11/06/2012 - 07:06 | 2951187 TWSceptic
TWSceptic's picture

How convenient for Barry that crude decided to find a bottom right before the elections.

Tue, 11/06/2012 - 08:17 | 2951245 Grand Supercycle
Grand Supercycle's picture

OBAMA WINS.

...says prediction markets

http://stks.co/oDst

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