Cliff-Off; Volcker-Off; Hilsenrath-On; Equities-On But Risk-Unch

Tyler Durden's picture

Equity indices bounced off re-coupled gold performance after Boehner's 'nothing'  led into European close pump which was supported by Obama's 'nothing' then pumped for one last stop-run over recent highs thanks to another 'nothing' from WSJ's Hilsenrath. Remarkable! A 2% rise off the day's lows moved us well above the recent Reid-top. Risk assets in general were far less exuberant as stocks really stepped up the decoupling after around 1300ET. AAPL ended red, bumped up against its closing VWAP and sold off every time; VIX traded from 17% highs to 15.5% at the close; and HYG plunged into the close to end the day unchanged (on huge volume). Today appeared very much a catch-up day for stocks to a number of asset-classes that were not sold hard yesterday - the recoupling is complete now.


S&P 500 futures hovered  at the highs and volume was heavy with no movement - smells like short-stops being gobbled up...


Stocks were all alone in exuberant-land this afternoon as stops were run above Reid's top and Thanksgiving..


And across broad risk assets (summarised by our indices below) - stocks simply pulled away from any kind of risk-on reality...


It looks like stocks (green) had dramatically oversold yesterday relative to credit - but the catch up today appears to have been met with high yield credit (red) weakness into the close on huge volume...


Tough to say where next but the 'catch-up' has certainly removed some arb ammunition to extend and the block size up at the tops (where the stops were) suggests we test back down before any extended run...


Charts: Bloomberg and Capital Context


Bonus Chart: AAPL - selling pressure appearing again at the VWAPs...


Bonus Bonus Chart: S&P 500 futures have consistently stalled trends at around a 5% low-to-high-swings over 7 trading days... will this time be different?

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Boilermaker's picture

I can't believe they did this AGAIN!!!

Boilermaker's picture

I mean...AGAIN?!?

I really thought they would stop after the 78th time. I really really did.

DeadFred's picture

What it is is a very nice looking double-top for their mini-rally.

Cdad's picture

Nice.  Love this nightly recap...and I concur with every last word of this one.  The whole mark 'em up to dump them at the bell thing is getting so old.  Confidence must really be...errrr...nonexistent if that pffft from Boehner was the cover for this broken market rally.  

Just sad.

More banker pink slips, please.  And how about a literal house cleaning of personnel over at The BlowHorn [CNBC].  Just quit with the totally bogus "financial news" coverage already.  Good grief!


It only takes hours now for the clowns over at The BlowHorn to change their explanation of things.  Previously, we were rallying on hopes of a fiscal cliff solution...LOL.  In the after hours, the narrative now changes to that of a short squeeze continuing.  Is there anyone left at that joke of a network that actually gives a shit about his or her integrity?  I mean beyond Santelli, of course.

Seriously, just kill the satellite link already.

Mr Lennon Hendrix's picture

Miners were up today.

flacon's picture

After taking a trip to hell this morning. 

Squid Vicious's picture

they really should save hilsen-sack for days when the "market" hasn't already bounced 20 handles... you never know when you might really need that whore to QEeef

venturen's picture

The truck load of currency from Bernanke showed up today.

Mr Lennon Hendrix's picture


We will see the euro move to 1.275 and euro bears will come out of the woodwork screaming "King Dollar!" only to continue to be blown out by Bernanke's monetary mandate to "lower the price of the dollar as to increase exports".

Sorry euro bears, as right as you are, you are still wrong.

Boilermaker's picture

I saw a convoy heading down I-70 towards D.C.

Grab your ankles.

Cdad's picture

We have arrived at the point, clearly, when a truck load of US dollars is actually meaningless to this market...because it is clearly broken beyond repair, and can only finally just CLEAR.  

Right here, momo guys actually deploying Bernanke bucks into momentum are going to get chopped to pieces.  Current market behavior is of a pre plunge nature.  It includes our wonderful HFT providing liquidity in the form of dumping the crap out of everything at the bell.  

The more the Fed pumps into this market, the more that will be lost.  Welcome to the Nikkei!

dvsteenk's picture

why make everyone believe there's a connection to what Boehner said and the incredible ramp job of today - perhaps another data "beat" tomorrow and today's ramp will be interpreted as if today information leaked early and hence insider trading - there is no rational explanation other than endless unpunished price manipulation

this is another programmed fuck-up of shorts, a controlled ramp up by algorithms, against all fundamental logic, preventing once more a 2 to 3% drop from happening

this allowed them to buy protection cheaper or may help them ramp it up even easier tomorrow, as more and more traders exit this utterly fake market

why shorts keep getting squeezed over and over is weird, i wonder if there is any real trading going on, could be 99% artificial, and they scavenge on the 1% last men standing

GernB's picture

There might be a connection. Algo's aren't very smart and can't tell how bullish headline news might be. A little movement right when Boehner spoke might be seen by another Algo as just the cayalyst needed to begin a short squeeze.

John Law Lives's picture

Maybe it is high time that a major credit rating agency trumps these assclowns by downgrading the US credit rating (again) and reminding them that the gig will be up soon enough.  The game of print, spend, obfuscate and print some more will end badly... and it only gets worse until the piper gets paid.


Dollar Bill Hiccup's picture

It never gets old, does it?

Maybe catch a couple of these psyops correctly, if you do the Costanza.

Just do the opposite of everything your gut and reason tell you.

Unfortunately I could not muster Mr. Costanza today ...

a growing concern's picture

That's why I lost all my market fucking around money. The more I read and understood our economic and financial issues, the faster down the drain it went. I would make an absolute killing if I could just turn off my brain and BTFD.

GernB's picture

The news is about big things that happen over huge spans of time relative to a little movement today. Movement over short time frames is more about who thinks what levels are good to buy and sell. If you want to trade the news, then only look at where you are in the larger scheme over many days and ignore the smaller time frames. If you want to trade in short time frames it's better to do it on a technical basis.

Yen Cross's picture

 These markets are the equivalent of electricity flowing through the " Nina , Pinta, Santa Maria " Beached on PLYMOUTH ROCK , Bitchez/

a growing concern's picture

How bout RGR since Election Day? Up around 33%. The BO trade lives.

LongSoupLine's picture

the "market" has truly hit fullretard critical mass.



i never thought i'd see such blatent in your face open corruption with no enforcement from any regulator.  this is just more proof that thw general public is completely fucking retarded.  otherwise there would be open outrage in the streets similar to the anger here at ZH.

fuck it all...we are doomed.  time for some single malt...

John Law Lives's picture

"i never thought i'd see such blatant in your face open corruption with no enforcement from any regulator."

It appears that manipulators get a free pass when the markets move higher and the oligarchs profit from it...

Mr Lennon Hendrix's picture

Well when Bernanke has the bond market lassoed and everyone thinks the euro is weeks if not days away from failure what do you expect to have happen?

No broker is selling bomds.  Why would they?  Buy at premium and lose money in real terms?  No way.  Money managers are selling stocks to their clients.  Avon, Facebook, GM, it doesn't matter.  What matters is that everyone knows rates are going to rise and the last place to have money is in bonds. 

Everyone except Bernanke that is.

Squid Vicious's picture

fear not, Ms. Walter will get to the bottom of it after her swearing in...after all she served on the Board of Trustees of Jewish Women International so she is well qualified

Yen Cross's picture

 Hey LongSoupLine  I'm missing one of your "trademark"  Fuck everyone,sendoffs?

LongSoupLine's picture


i'll try and step up my game.

Quinvarius's picture

Never doubt there is but one way this is all going to go.  Hyperinflation.

chump666's picture

In other words a frustrating market for bulls and bears.  It's not going anywhere and stuck in a range, unless you are a HFT or leveraged up to hell. 

We need a flush out.

Yen Cross's picture

 The markets have achieved absolute " Kelvin"...  Well below ZERO bitchez!

chump666's picture

Going to be text book if this thing hits Nov highs, then crashes.  A crash before the Santa rally?