Trannies Suck Stocks Higher As Risk-Assets Flatline

Tyler Durden's picture

UPDATE: With GOOG and IBM earnings (details below), futures are pushing higher still after-hours

Lowish volume and low average trade size was all that was required to march stocks up to recent highs on the back of more VIX compression and vol term structure steepening. Today was one of the most-disconnected day in a while between equities (and vol) and the rest of the market with the USD practically unchanged, Treasury rates lower, and high-yield credit flat. Commodities pushed higher on the week with Silver outperforming (+1.2%) as Oil broke back above $96 and the Energy sector led stocks along with Utilities (safety?) and Materials. Tech was weak as AAPL plunged early on - only to recover back above VWAP into the close. The Dow Transports have been the corner-piece of this rally as it would appear AAPL's loss is rail-cars and airlines gains. Up 12 of the last 15 days and +19% in the last six weeks, we note the last time this index surged on this scale was in April 2010 (when we saw realized vol for the index also plunge to record lows such as we have now) - and this happened...


And the phrase of the year has clearly been - BTFD!!


As The Trannies linearly lift and AAPL dumps...


With the S&P 500 bumping against the up trend line again and again...


The disconnects were remarkable today... this is in ETFs (with VXX and SPY tracking perfectly as HYG and TLT entirely ignoring the risk-on mentality...


and the USD disillusion, Treasury bid, Gold sagging into the close was completely ignored by the flow into stocks...


which is clearly indicated in the following charts:


FX markets were noisy as JPY strength (sell-the-news on a delay to 2014 of open-yended support) and GBP weakness (as King brings the UK into the currency wars) weighed modestly negatively on the USD...


and yet another day when the indices led and underlyings did not follow as breadth was very weak...


Charts: Bloomberg and Capital Context


Bonus Charts: IBM After-hours - filled the $204 gap to mid-October (fading now)

  • Q4 revenue $29.3 bn, vs Exp $29.08 bn
  • Q4 gross margin 51.8%
  • Q4 software revenue +3%
  • Backlog at Dec 31. $140 bn
  • Q4 services revenues -2%
  • Sees 2013 Adj EPS at least $16.7 bn, Exp. $16.64 bn


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achmachat's picture

I came for "Trannies suck" and left disappointed... 

Say What Again's picture

I guess GS, JPM, BAC, and the rest of the usual suspects are gonna juice this "market" until GS gives the wink, and they have the most orchestrated removal of BIDs - making the Flash Crash look like a walk in the park.  Of course, they will be loaded up on PUTs prior to that.

ACP's picture

Dirt cheap puts -

$85 bil a month to cram the VIX, ramp es, sell puts on the way up, ramp the VIX, cram es and buy puts back at the top.

 The Russell 2000 has now been overbought for a LONGER continuous stretch than it was prior to the flash crash.

CClarity's picture

Breaking***OT but really? Egan-Jones prohibited from issuing ratings on sov govt debt for next 18 months!X? Anyone else see govt conspiracy here? Payback to whistle blowing truth tellers is a bitch. Geesh!

DeadFred's picture

The guys aren't in Gitmo they should be happy.

Texas Ginslinger's picture

What's the rumpus..??

Stocks went up, I sold and made a profit this morning..

CClarity's picture

Thx NA.  Wasn't on earlier and missed it.  Just caught on a Bloomberg alert.  Of COURSE ZH had way earlier.  Thanks again.  

putaipan's picture

nobody expects the ... the Domestic Security Alliance Council !

sorry. didn't know where else to stick this ten day old breaking news.

flacon's picture

Paint It Black: FBI keeps Americans in dark about GPS tracking

DeadFred's picture

Very likely. How do we tell when the banks are closing out the puts they sold before and buying new ones of their own? Tyler you might be able to give a push by keeping track and announcing it when they start prepping for the Great Dump. I believe in you.

Boris Alatovkrap's picture

Boris is find too many graphs. Where is pictures of trannie freaks?

Jake88's picture

you're on the wrong site Boris.

Boris Alatovkrap's picture

No, Boris is entirely not visit! Boris is true Zero Hedge*!


* Boris is originally visit Zero Hedge because is very dislike of shrubbery.

Colonel Klink's picture

Boris you need to consult the "workers" at the SEC.  They know all the tranny porn sites you seek.

q99x2's picture

You got a big woody in the last one. Use your imagination. Here's the rest of it: ( .  . )

putaipan's picture

gnii ! gnii!! gnii !!!!

FL_Conservative's picture

ZH must be mistaken 'cuz CNBC says the pattern is, after the morning sell off, the SMART MONEY steps in to buy.  Please get your story straight ZH.

/sarc off

Colonel Klink's picture

Misleading headline, I was expecting to see an article about the SEC!

MFLTucson's picture

January Richmond Fed Plunges, Quadruple Dips In Biggest Miss To Expectations Since 2009


This must be the positive economic news that sent the con market higher?

Boilermaker's picture

Maybe TOMORROW the Fed will stop slamming stocks higher?

Jesus, how many times can this be presented?

For fuck sake, it's being forced higher.  I get it.  I know it.  It's not going to stop.


GernB's picture

The fact that too many people think it is not going to stop virtually assures that it will.

Boilermaker's picture

Yea, 10 years ago.

The game has changed, completely.  It's not even real anymore.  If you don't understand that it's not a bunch of traders / investors but rather being RAMRODDED higher with printing...well...good luck with that.

Mrmojorisin515's picture

our salvation/needed pain will only come when the rest of the world pulls the bid out from under the dollar


Boilermaker's picture

And they'll sell their products to.....

They're all in on the shell game.  Get used to it.

Joe Davola's picture

You mean the rest of the world that's trying to win the currency debasement race?

NotApplicable's picture

By bidding up the dollar with their newly "printed" currency?

max2205's picture

I bet Bens boyz own a shitload of AAPL.  He bought the unwind

johngaltfla's picture

Eddie Murphy's ex-girflriends or Michelle O. led stocks higher?


Who'da thunk it.

Boilermaker's picture

Yea, it's shocking

eclectic syncretist's picture

The skimmers are using a hell of a lot of taxpayer credit just to create the mother of all head-and-shoulders/broadening formation.^GSPC+Interactive#symbol=^gspc;range=19510309,20130122;compare=;indicator=volume;charttype=ohlc;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

The lemmings are in full stampede mode, boys!

market le pew's picture

Why do you pay attention to all these details, as long as it's not nailed down, IT'S GOING UP, IN FACT IT WILL GO UP ENOUGH TO DRAG VOL UP ENOUGH TO FORM A CALL SKEW!!!

DeadFred's picture

If I were an evil head of the PPT team out to ramp the markets and stain my soul I would be selling VIX buying the transports and any other index that I know the robots are using to decide where the market should be. I would also arrange to be buried in asbestos clothing just in case. My question is what causes this to end? It probably doesn't take that much cash to fool the algos so what stops this? Logic says it won't last forever but I don't see what will stop the party. They can sell enough VIX to keep dropping the index and not worry since it's NOT THEIR MONEY.

Orly's picture

But my question is where do the Feds get ahold of proprietary information as to how their algos are working, hmmm?

chump666's picture

There is no organized PPT per se, just central bank cartels, of course more so The Fed eroding the value of USD denominated assets in an obsessive way.  So, players roll over into equities out of bonds and DXY trades.  You can see this everyday.  Yes this is deliberate.  The central banks and governments are obsessed with the supporting the pension funds, which is pointless, when the asset values here and now are been eroded by the madness of money printing.  HFTs draw from dark pools, probably access to Wall Street funds, but more so from various endowment funds eg some a-hole professor in computer science sets up a HFT company.  All and all the market does look liquidity constrained, with Asia still bidding on the USD.  How will it end?  Asia, more Japan or China or both.  HFTs get an inkling of any longs cutting they will offer hard chasing the MA's, or freaking out on news generated data and VWAP. Should crash this monster.


Just watch Asia/Japan/China or a war in the middle east i.e Israel/Iran

ekm's picture

JPM is selling stocks to BAC, BAC to C, C to MS, MS to GS and GS back to JPM.


That's all it is. Like this Dow may go 20k. Only that, all the financial industry would be useless, just keep the primary dealers.


Up to now I thought, 1000pts/day drop would be ok. I'm more inclined to forecast 3000 dow points drop per day for 2 days in a row.

Boilermaker's picture

Not until Mom and Pop get back into the game.  That ain't happening any time soon.

This shit show has a LONG way to go.  They need to have another 100 shills find the peanut under the shell before the retail investor touches this shit again.

They'll just keep ramping it every damn day until then.

ekm's picture

Mom and Pop were priced out at 10k down. Any point from 10k is primary dealers bouncing around the same shit and ETF stock storing. Like this everybody in finance will be fired.

There's no need, but for primary dealers' stock bouncing desks. They don't need thousands of people to do that.

It's going to crap and pretty soon, by executive order from the emperor in the white house.

SmoothCoolSmoke's picture

Despite all our rage we are still just (ZH) rats in a (Buck Fernankie) cage.

ebworthen's picture

The HFT robots are doing a fine job rotating in and out of sectors, spring-boarded by FED QE trampolines and sucker's cash.

tawse57's picture

Apple is trying to climb after hours - OK, 'only' up 5 bucks but wait until tomorrow night. It will be a frenzy... most likely...


We all keep talking about them ramping the market in order to short it and make the markets plunge... but we have been talking about this for well over a year now... IS IT EVER GOING TO HAPPEN?

Well, I know it will happen one day but is that one day weeks, months or even years away?


azengrcat's picture

If you aint Teppering you aint winning

Venerability's picture

All these same ole, same ole stories, but nothing on the looming worldwide Silver shortage or JPM's London Crew doing everything possible to make it disappear via propaganda?

Either ZH is truly a Rebel Against the Script - or ZH is a Rebel Against the Script Except When It Might Affect the Alpha Bank.

NotApplicable's picture

Well, according to your script, perhaps.

Venerability's picture

I've never parroted The Script, as you well know.

I don't believe in turning real life into baby games. But some, apparently, still do.

Oh, look! Right on cue, an illegal keylogger. 

And by the way, crowing about keeping the Sheeple out of the market is rather silly on your part, given that most Hedgies - especially the Short, Short, Short Some More kind - have underperformed the Peasants - and Pheasants - still in the market for over two years now.

That's because a high proportion of those Peasants - and Pheasants - are 40-plus highly-educated professionals, many of them with solid financial backgrounds, while those manning a lot of Hedgie trading desks are Kiddies under 30, with far more testosterone than brains.

It really is a Battle of Generations now. And the Kiddies aren't winning by a longshot.

How can they, when this still hollowed-out economy is not providing any real new Market fodder?

You fellas still haven't figured that out, and we are close to the point where you're going to have to do so.

Meanwhile, we Peasants - and Pheasants - are at least getting some crumbs for a change, which is the beginnng of improvement.

The Alpha Bank may not like it. But as I've said before, the Alpha Bank has been losing friends fast.