S&P 500 Crosses 1500

Tyler Durden's picture




 

If there was one day needing some truly epic distraction from the bloodbath of the world's most widely held stock (held by some 231 hedge funds as of September 30, and countless mutual and other plain vanilla funds), it was today. And sure enough, it came courtesy of the S&P, which "restored" confidence that 'all is well' after it just crossed 1500 for the first time since 2007. The only thing missing were balloons falling from the sky saying "all is well, keep calm, the NY Fed-Citadel fat trading pipe is working perfectly and will keep buying stuff as long as needed."

 

It would appear the Long-AAPL, short S&P trade is in full unwind mode - and we note that trade size is large up here.

 

and S&P 500 Futures tell the whole picture as futures did not budge off the lows until the day-session opened and the idiocy began...

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Thu, 01/24/2013 - 11:16 | 3182504 Dr. Engali
Dr. Engali's picture

Fuck yeah! I feel so wealthy I think I'll go out and buy an over priced McMansion and a new Beamer.

Thu, 01/24/2013 - 11:22 | 3182529 GolfHatesMe
GolfHatesMe's picture

iPads, unless you don't want to eat

Thu, 01/24/2013 - 16:30 | 3183590 helping_friendl...
helping_friendly_book's picture

What does that mean? I called my broker and he hadn't heard about any restrictions.

Thu, 01/24/2013 - 11:16 | 3182507 Cognitive Dissonance
Cognitive Dissonance's picture

All fixed.

<When can I take the blue pill?>

Thu, 01/24/2013 - 11:18 | 3182511 Dr. Engali
Dr. Engali's picture

Unfortunately you can never go back...although that steak is looking mighty tastey right now.

Thu, 01/24/2013 - 11:20 | 3182520 Cognitive Dissonance
Cognitive Dissonance's picture

I hear a lobotomy will work just fine.

<Two scoops......just to make sure.>

Thu, 01/24/2013 - 11:21 | 3182527 Dr. Engali
Dr. Engali's picture

 +1  Lol

Thu, 01/24/2013 - 11:32 | 3182566 Groundhog Day
Groundhog Day's picture

You can't CD.  i've tryed to go back in the matrix. It's too late, you can only watch from the outside looking in until they run out of tools which could be a very long time

Thu, 01/24/2013 - 11:31 | 3182567 Groundhog Day
Groundhog Day's picture

You can't CD.  i've tryed to go back in the matrix. It's too late, you can only watch from the outside looking in until they run out of tools which could be a very long time

Thu, 01/24/2013 - 13:40 | 3182940 Doomer
Doomer's picture

Yes, indeed.  I just went all in.

Now all I have to do is come up with a name for the boat I am going to buy ... maybe I'll buy Jobs' boat.  i could call iT "iTiTaniC".

/sarc

Thu, 01/24/2013 - 11:17 | 3182508 Hedgetard55
Hedgetard55's picture

Thank you Obi Wan Bernanke!!!

Thu, 01/24/2013 - 11:33 | 3182570 Cognitive Dissonance
Cognitive Dissonance's picture

Move along. These are not the droids bankers you're looking for.

Thu, 01/24/2013 - 13:36 | 3182943 Doomer
Doomer's picture

Beware of the dark slide.

Thu, 01/24/2013 - 11:18 | 3182512 GNWT
GNWT's picture

another day another billion...

 

I want that 18k Bernanke and his gang stole from he...

 

on the discount rate cut, Geithner, tiny timmy....

 

G

 

stay liquid my friends

Thu, 01/24/2013 - 11:18 | 3182516 otto skorzeny
otto skorzeny's picture

ass-wipe Dimon told Maria B that US stocks are a good buy at these levels. it's easy to play the game using the house's $.

Thu, 01/24/2013 - 14:43 | 3183179 DR
DR's picture

Dimon told a reporter a few years ago that a financial crisis happens every 5 to 7 years so we are due for another crisis in a year or two. The guy is just pumping up the 'Shear the Sheeple' financial cycle hoping to cash out on top.

Thu, 01/24/2013 - 11:19 | 3182523 GNWT
GNWT's picture

 

Orwell ai't got nothin on these people...

 

G

Thu, 01/24/2013 - 11:22 | 3182532 orangegeek
orangegeek's picture

More punishment for the shorts.  SP500 has moved over 160 points since November 2012.

 

http://bullandbearmash.com/chart/sp500-daily-continues-160-points-november/

 

Looks like the greatest depression is over.  Or could it be that the greatest depression is getting wound up for another collapse?

Thu, 01/24/2013 - 11:22 | 3182533 Thought criminal
Thought criminal's picture

I'm seriously considering buying VXX or UVXY now, this is just beyond ridiculous.

Thu, 01/24/2013 - 11:28 | 3182543 otto skorzeny
otto skorzeny's picture

i considered it 6 months ago with the same thought process-glad I didn't. tvix went from $12 to $4.70 in just the last 3 weeks

Thu, 01/24/2013 - 11:57 | 3182641 Thought criminal
Thought criminal's picture

Seems to me it stopped dropping significantly when the market goes up - looks like a strong buy signal to me, even though I know it's probably the riskiest asset one can buy.

Sat, 01/26/2013 - 03:42 | 3187438 MeelionDollerBogus
MeelionDollerBogus's picture

Think of it like this. Market goes down (S&P500, DOW), VXX ETF goes up. DIA ETF tracks the DOW, SPY ETF tracks the S&P500.

So, what’s the beef?

VXX is roughly -4.6x gaining up with SPY declining but can hit -11x with SPY on the way up and VXX declining. This is real bad for being long VXX, nice if longer-term  you’re short, even with margin (but I never recommend margin).

Options have expirations while SPY, VXX shares do not. So how do you balance out the risk?

On the one hand, you can see that if you buy VXX too soon and SPY goes up, you’ll get a decline more in the -11x area of slope on a scatterplot, http://flic.kr/p/dHiJzF

Meaning that even if the bottom to the next top of VXX is -4x or so against SPY you’ll lose that & have a smaller gain or break-even. SOMETIMES VXX & SPY will decline TOGETHER too. So if you’re worried about that but determined but play the game, SPY puts while having a time-risk are definitely going to go up while SPY goes down without this VXX -11x downslide.

That’s where you would consider that time-risk.

Generally given the fake-outs & the moves needed if you think SPY will fake out even once you’ll want at least 5 months of time on each Put, maybe more. Given the payout for more time you’ll want to expect SPY to drop at least $10/share with 45 days left on your Puts.

If you don’t think that’s reasonable, DO NOT PLAY.

Thu, 01/24/2013 - 11:26 | 3182544 Boilermaker
Boilermaker's picture

It's totally ridiculous but it also should demonstrate the TOTAL and UTTER fucking CONTROL they have of the situation.

Thu, 01/24/2013 - 11:41 | 3182601 Groundhog Day
Groundhog Day's picture

Do your self a favor.  Go buy a car, some jewlerey for your wife/girlfriend, go on a vacation, take all your friends out and get them drunk and laid or if your really smart buy some gold bars and bury it somewhere safe.  If i had done any of these things i would have had some satisfaction but instead i managed to piss away 30k in 3-4 months on vxx thinking these crooks can't possibly hold it together.  They can and will for some time longer.

Your welcome

Thu, 01/24/2013 - 12:39 | 3182752 Karlus
Karlus's picture

I took a hit in Dec and my wife basically said we could buy every single Louis Vuitton purse in the boutique and have money left over.

You just have to keep in mind when the flip side happens.However, we dont buy all of the purses with the gains. It goes on the pile to get more income from investment.

Sat, 01/26/2013 - 03:31 | 3187434 MeelionDollerBogus
MeelionDollerBogus's picture

It won’t be long before VXX shares hit 50 to 55/share. I hope that is suitable to your total book-value in so far.

http://flic.kr/p/dHpavN

Thu, 01/24/2013 - 11:23 | 3182536 Jayda1850
Jayda1850's picture

I'm still amazed that the talking heads wants us to believe all is well as the market hits post crash all time highs while totally ignoring the trillions of dollars pumped in by the Fed for that exact purpose. They must think americans are totally ignorant and easily controlled. Damn You talking heads you win again.

Thu, 01/24/2013 - 11:25 | 3182545 Dr. Engali
Dr. Engali's picture

"They must think americans are totally ignorant and easily controlled."

 

Uuuhhmmm...they are. 

Thu, 01/24/2013 - 11:27 | 3182554 Spastica Rex
Spastica Rex's picture

Russians were too, for quite a long time.

Thu, 01/24/2013 - 11:38 | 3182597 falak pema
falak pema's picture

I wonder what the feeling in Gotham city was in July 1929?

Leading up to that lazy hazy summer...

Herbert Hoover had been elected President...

Al Capone shot down seven Gangsters in the St Valentine's day massacre.

The first Oscar Ceremony was held in Hollywoood : Wings won the prize.

Hoover passed the Agricultural MArketing act to help support the farmers against falling prices.

In Europe Ante Pavelich forms the Oustachis amongst the Croats to fight Serbian dominance of ALexander I

Leon Trotsky kicked out of Soviet Russia.

French vineyards pronounce a famous vintage from 1928 product. 

Bottoms up! as we head into 2013! 

Thu, 01/24/2013 - 11:23 | 3182538 Boilermaker
Boilermaker's picture

You mean that they DIDN'T stop ass ramming it higher today?

I can't believe it. I thought for sure they would give up eventually. I had today circled on the calendar for the crash.

Thu, 01/24/2013 - 11:26 | 3182547 gjp
gjp's picture

Today is the bubbliest day yet.  NFLX, AMZN, retailers, financials.  Absolutely sickening!

Thu, 01/24/2013 - 11:31 | 3182564 otto skorzeny
otto skorzeny's picture

that dickhead from NFLX Hastings was talking about how "powerful" the technology that that enables one to sit on their fat ass and watch movies instantly on your iShit-I'm still cleaning the puke out of my keyboard

Thu, 01/24/2013 - 11:26 | 3182550 orangegeek
orangegeek's picture

The pending collapse will look like the above 1 minute bar at the open shown above.

 

It's just a matter of time.  In the meantime, it's more head fakes.

 

Rumor has it that the NYSE and NASDAQ are being outsourced to Caesar's.

Thu, 01/24/2013 - 11:27 | 3182551 Downtoolong
Downtoolong's picture

There will never be another down day. But, I'm betting pretty pissed with you hedgies for making me get up in the middle of the night to turn the printing presses on.

Ben.

Thu, 01/24/2013 - 11:29 | 3182556 GNWT
GNWT's picture

 

As the great Mark Cook, the farmer, said...

don't anticipate react...

bernanke can stay irrational longer than you can stay liquid

fade yhoo in 98 at 100 on the way to 8?

no fade it at 180 a year later.

Plenty of time, lower lows and lower highs...

trend is your friend

Jesse L...um...

G

 

stay liquid my friends

Thu, 01/24/2013 - 11:31 | 3182561 GNWT
GNWT's picture

 

makes sense right, they are just democratizing trading...

 

if JPM can have 100 winning days in a row, why not the masses...

 

tres egalitarian, no?

 

G

Thu, 01/24/2013 - 11:35 | 3182579 asteroids
asteroids's picture

I remember Dec 1999 and Mar 2009. In both cases the markets kept on going for no good reason. I couldn't figure it out. I thought people were "mental" for being in the market. I'm completely out. I suggest everyone stay out as well.

Thu, 01/24/2013 - 11:45 | 3182607 forwardho
forwardho's picture

I was told when I was young to stay away from and not make eye contact with crazy people.

The advice has served me well.

Thu, 01/24/2013 - 11:59 | 3182645 eclectic syncretist
eclectic syncretist's picture

It does seem like Dec 1999 all over again, at least to me too.  Except then it was the promise of the internet and wireless communications, in addition to Greenspans easy money policies, that was goosing the markets.  Now it's only Bernanke's superduperultra-easy money policies goosing the markets, and not any promising economic fundamentals to support/legitimize it.  If it does collapse and the banks lose all this almost free money they're gambling with what will happen to them then?  Who might they get to step in and buy their shares before any collapse?  Pension funds or some other form of taxpayer funding?  I don't know.

So we're off to the moon.  Fattening the pig for the inevitable slaughter.  Just another opportunity looking better every day from my perspective.  In fact I'm finding it hard not to go short right here, but I agree it's best to be out at the moment and await further developments. 

Thu, 01/24/2013 - 11:35 | 3182581 TrumpXVI
TrumpXVI's picture

To the Moon, Alice!!!!

Thu, 01/24/2013 - 11:37 | 3182593 fonzannoon
fonzannoon's picture

This market will ramrod higher and squeeze every short and every advisor prudently sitting clients out until they are either unemployed or jump in and chase. 1600....1700....who knows. Only when people have finally completely lost their 2008 memory and risk tolerance and gets back in will you see a tank.

I think it is close. I have seen a lot of people complaining lately that they are frustrated with their performance relative to blah blah blah.

Thu, 01/24/2013 - 11:39 | 3182598 fuu
fuu's picture

And it only cost $16,000,000,000,000!

Thu, 01/24/2013 - 11:40 | 3182600 forwardho
forwardho's picture

Talk about walking the plank.

There are NO fundimentals for this move.

It is being supported by a wish and a dream.

The wish will become a curse, and the dream a nightmare.

Thu, 01/24/2013 - 11:48 | 3182617 lemarche
lemarche's picture

SPOT ON !!! ZEROHEDGE 1 OF BEST "NEWS" SITES OUTTHERE, 1 OF THE FEW THAT ACTUALLY UNDERSTANDS TRADING !!! UNWINDING BIG TIME OF SPREADS SPX/AAPL ON OPEN !!! HUUUUGE...

Thu, 01/24/2013 - 11:59 | 3182652 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

We're all Gary Pilgrims now...

Thu, 01/24/2013 - 12:14 | 3182679 SmoothCoolSmoke
SmoothCoolSmoke's picture

I'm sure there will be a blow and hooker shortage in Davos tonight.

Thu, 01/24/2013 - 12:21 | 3182707 Quinvarius
Quinvarius's picture

Why must the noobs learn that markets move on easy money and easy credit only in such a horrific manner?  I tried.  I tried.

Thu, 01/24/2013 - 12:25 | 3182718 polo007
polo007's picture

 

http://money.cnn.com/2013/01/01/news/economy/fed-monetary-policy.moneymag/index.html

"Communication is a policy tool in and of itself," says Yellen. "It's not only current purchases of assets or the current level of the Fed funds rate that matter, but also market expectations of the paths of those things over time."

Translation: By telling the world that it's set on 6.5% unemployment and that it will tolerate inflation of 2.5%, the Fed is all but screaming at the market that it won't pull the rug up -- all to coax investors, lenders, and businesses back into confidence.

The Fed is also saying that safety will continue to cost. Today's yield on a 10-year Treasury bond is just 1.79%, which means in real terms that you are losing money holding on to it even if inflation is a bit less than 2.5%. Steeper rises would be even more painful.

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