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Algos Take Stocks In A World Of Their Own

Tyler Durden's picture




 

Reid's sell-off has been entirely retraced by a Boehner-Obama double-act in which they didn't spit, scratch, and gnaw at each other. The algos have it now and so stop-runs in stocks are all that counts. Equities are in a world of their own as they decouple from everything from high yield credit to Treasuries and from oil to the USD. Correlations have dropped as we approach Reid's top - we wonder if reality will sink back in shortly. It would seem, once again, that EURUSD is the most-leveragable vehicle of the day once again... and of course this ramp enabled AAPL to get back to yesterday's VWAP.

Stocks (blue) in world of their own...

 

long-term EURUSD and stocks remain coupled but bonds have left the party...

 

as correlations (lower right) break down across asset classes and equities surge away from credit, rates, commodities, and FX markets...

 

If you are a bull it seems like HYG is better trade here; if bearish fade SPY's exuberance; or play the middle...

and meanwhile in AAPL - we retraced to yesterday's VWAP...

 

Charts: Bloomberg and Capital Context

 

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Wed, 11/28/2012 - 14:22 | 3017971 TruthInSunshine
TruthInSunshine's picture

The Boehner/Hairy Reed/Big-O erection is petering out, by way of premature algo/HFT ejaculation, it would appear.

More words, jawboning, teleprompting, saying of nothing of consequence or impact very authoritatively...

"Told by an idiot, full of sound and fury, Signifying nothing."

Wed, 11/28/2012 - 14:18 | 3017976 Dr. Richard Head
Dr. Richard Head's picture

Thums up, favorite add, and subscribe. Nice.

Wed, 11/28/2012 - 18:40 | 3018738 rocker
rocker's picture

2 Thumbs Up. I subscribed too. If we can't invest in the markets, we may as well laugh at them.

Especially when they eat each other.

Wed, 11/28/2012 - 14:24 | 3017983 CPL
CPL's picture

LOL!

 

Well done.

Wed, 11/28/2012 - 15:06 | 3018116 Mark Carney
Mark Carney's picture

HAHA..."HFT STOP!, HFT STOP!"

 

LOL

Wed, 11/28/2012 - 14:03 | 3017929 Ese Pinche
Ese Pinche's picture

+ EOM mark up

Wed, 11/28/2012 - 14:03 | 3017930 fuu
fuu's picture

Nice rebound in silver today.

Wed, 11/28/2012 - 14:04 | 3017931 Lost Wages
Lost Wages's picture

Algos take stocks on a magic carpet ride.

Wed, 11/28/2012 - 14:18 | 3017973 LouisDega
LouisDega's picture

Nice.. I was thinking more of a Magical mystery tour

http://www.youtube.com/watch?v=Hnrsqf33MXA

Wed, 11/28/2012 - 14:04 | 3017934 Cdad
Cdad's picture

ES is WILDLY over extended to the upside on the hourly.  WILDLY.  More so than they ever were today on the downside.

Just stupid.  

Wed, 11/28/2012 - 14:07 | 3017941 TruthInSunshine
TruthInSunshine's picture

13 year old Dow 13000 rally caps, frayed, tattered and otherwise.

Wed, 11/28/2012 - 14:10 | 3017950 SheepDog-One
SheepDog-One's picture

Yep almost 2 decade-old market levels, and recession confirmed (depression really) and debt impossible to ever get out of in a million years.....no problem, a politicians spoke some words or other, it's all good now!

Wed, 11/28/2012 - 14:34 | 3017967 TruthInSunshine
TruthInSunshine's picture

If you owned Cramer's Winners of the New World back in 1999, you'd have recovered 3.7% of your initial investment by now, counting the few companies that are still solvent/listed/around.

I've prepared a list of the Winners of the New World ver2.0, and it begins with a Group Grope, ends with a Zyng, and there's even a FaceFuck in between there somewhere.

Wed, 11/28/2012 - 14:06 | 3017937 SheepDog-One
SheepDog-One's picture

This is planned pump and dump from these US politicians, pure illegal criminality for their own gain only...they should all be immediately arrested. But of course that won't happen, we're all on the plantation now.

Wed, 11/28/2012 - 19:33 | 3018871 WezTheJuic
WezTheJuic's picture

There it is. Now you see.

So, how do you see through?

Quit working on it, work through ti.

Pens,

Wed, 11/28/2012 - 14:07 | 3017938 Mike in GA
Mike in GA's picture

But I'm still triying to understand why gold and silver sold off so hard this morning and the USD climbed.

 Okay, so now silver is recovering but gold really isn't and the USD is back to its starting point.

I should offer thanks to whatever the reason is; I did pick up more at the sale price this am. :)

 

 

Wed, 11/28/2012 - 14:11 | 3017953 Cdad
Cdad's picture

Long liquidation this morning.  Maybe getting ahead of the curve on losses soon to come on the S&P...to cover upcoming margin calls.

But...who knows anymore.  The market no longer works.

Wed, 11/28/2012 - 14:11 | 3017952 koncaswatch
koncaswatch's picture

The surreal nature of our present situation makes me ask: When in hell did I get painted into one of Salvadore's worlds?

My PMs seem to act as my personal "safe" zone; the only thing keeping my cog-dis in check. 

Wed, 11/28/2012 - 14:14 | 3017958 LawsofPhysics
LawsofPhysics's picture

Please, it 's the end of the month, lots of contracts expiring, bond auctions that need to be supported, and bonuses to pay.  expected. there is no market.

Wed, 11/28/2012 - 14:12 | 3017959 Calidreaming
Calidreaming's picture

Fuck the algos and bernanke and the fiscal cliff shit too

Wed, 11/28/2012 - 14:14 | 3017960 mdtrader
mdtrader's picture

Neither of them said anything worthwhile just the usual politician speak. Amazed that the markets have rallied so hard.

Wed, 11/28/2012 - 14:13 | 3017963 Kaiser Sousa
Kaiser Sousa's picture

"you to can be like Warren ButtFuck and get rich in the Fraud Market...."

BUY MORE STOCKS!!!!

 

 

 

 

 

 

not......Buy more Silver in the Physical.....

Wed, 11/28/2012 - 14:13 | 3017964 Squid Vicious
Squid Vicious's picture

Mr. Market's boehner is premature...

Wed, 11/28/2012 - 16:15 | 3018318 edifice
edifice's picture

In the eloquent words of Beavis and Butthead:

"BOY-YOY-YOY-YOY-YOING..."

Wed, 11/28/2012 - 14:21 | 3017979 Tsar Pointless
Tsar Pointless's picture

Yeah, but did you see where today's ramp-fest ran out of steam on the S&P 500?

Right at Harry Reid's short position of 1405.

Apparently, you CAN make this stuff up, if you have access to the security codes.

Wed, 11/28/2012 - 14:25 | 3017985 NEOSERF
NEOSERF's picture

It does make you wonder whether the algo creators still have control of their creations...and if JPM's and GS creations are trying to run the market in different directions at the same time, at some point someone is going to feel some pain.

Wed, 11/28/2012 - 14:28 | 3017988 Debtless
Debtless's picture

Shocker. Algo-driven markets defy psudo-reality.

Every day CNBC makes news from nothing to fill time.

Seems like this place is really starting to do that too. 

Wed, 11/28/2012 - 14:29 | 3017989 Bastiat009
Bastiat009's picture

Still no word on gold. Let's focus on what we like and let's forget what we don't. It's the US so-called media method.

Wed, 11/28/2012 - 14:59 | 3018062 fuu
Wed, 11/28/2012 - 16:27 | 3018352 Bastiat009
Bastiat009's picture

The depth of your reply proves my point. And thanks for the link, presented with no comment ...

Wed, 11/28/2012 - 17:08 | 3018479 fuu
fuu's picture

What was your point again? That ZH pumps gold? That gold is worthless? That gold is tied to the euro? Who can even tell what your point is really, it changes so often.

Though only on days when gold is down in dollars, no where to be found when it is up in dollars.

Wed, 11/28/2012 - 14:36 | 3018003 dcb
dcb's picture

yup I wrote we were in algo hell on a social message board yesterday. today was good proof of there where I decide to just stop trading and sell it all, get out o the markets. we are in exactly the same pattern I could see from about 8.7.11 to 9.7.11 completely different algo running the show now

Wed, 11/28/2012 - 14:36 | 3018005 indianajohns04
indianajohns04's picture

Look @ Dec Vix Futures lower than spot Vix

Wed, 11/28/2012 - 14:38 | 3018009 PeteJE
PeteJE's picture

Huge volume flash spike downs on 1 min chart.  What the hell are the HFTs doing here?

Wed, 11/28/2012 - 14:40 | 3018012 Boilermaker
Boilermaker's picture

Russell 2K again just SOARING past the SPX.

WHEEEEEE

Wed, 11/28/2012 - 14:57 | 3018060 q99x2
q99x2's picture

Dow around 13,000 and S&P around 1400. Where have I seen that before? Must be the pension fund make or break number for political magic. Any lower and the few dumb ass workers that are left will complain about Obama and Banksters. Any higher and the Rothchilds and Rockefellers have to put too much of their stolen wealth back in the pot. So the banksters have the markets pegged at those numbers while they are busy taking down the EU and securing oil fields in the Mid East.

And here on the other side of things I'm pondering starting a student think tank based on legally extracting as much money from the government as possible.

We the people...

Wed, 11/28/2012 - 15:50 | 3018259 chinaboy
chinaboy's picture

zombie market!

Wed, 11/28/2012 - 15:56 | 3018274 Bansters-in-my-...
Bansters-in-my- feces's picture

Don't tell me any of yous ZHers are stil in the "market"

That...would be too funny.

Wed, 11/28/2012 - 16:45 | 3018415 EscapingProgress
EscapingProgress's picture

The coming crash is going to be fucking epic.

Wed, 11/28/2012 - 18:28 | 3018702 ECE
ECE's picture

Algo's?   Give me a friggin break!   I would love to know the science behind what F... algorithm picked up on this nonsensical bullshit rally.

This was all low volume hyper bull policy followers.   Fundamentals?   what is that?

This market is Vegas.  Has been Vegas and will not return.   Value investors?   Get ready to get turned on your head again.

 

JOKE.   play the game folks.  play the game.  

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