The Market's Schizophrenic Reaction To Payrolls

Tyler Durden's picture


The markets cannot make up their mind what to make of the Payrolls data this morning. Gold (and Silver) spiked and are holding gains; Treasury yields plunged and are trading lower in yield on the week now; EURUSD spiked then faded rapidly (not helped by Italian banking fraud); and stocks surged and are (for now) holding gains through the US it awaits UMich confidence...


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Fri, 02/01/2013 - 10:58 | 3206087 Nid
Nid's picture

Was Equities' response NFP based? Futures accross all US EQ mkts spiked immediately after yesterday's close, and were up big prior to 8:30 AM...DOW futures were up 76, S&P were up 7, Comp were up 15...simply more Ponzi scam.

Fri, 02/01/2013 - 10:58 | 3206094 Temporalist
Temporalist's picture

Mmm ponzi spam.  It's what's for breakfast, lunch and dinner!

Fri, 02/01/2013 - 10:59 | 3206099 LawsofPhysics
LawsofPhysics's picture

Indeed.  meanwhile, in the real world, look at those sorbean, wheat, and corn go!

Fri, 02/01/2013 - 11:06 | 3206130 fuu
fuu's picture

BOOM, headshot. Retrace nearly complete.

Fri, 02/01/2013 - 12:17 | 3206408 SWRichmond
SWRichmond's picture

There are no "markets", there are only interventions.  When you have limitless "money", you can make "markets" look like anything you want.  Until you can't.  We are simply waiting for real money to say "no mas".   Does anyone still believe these "markets" are allocating real capital?

Patience, grasshopper.

Fri, 02/01/2013 - 13:11 | 3206575 fuu
fuu's picture


I certainly don't.

Fri, 02/01/2013 - 11:06 | 3206134 Say What Again
Say What Again's picture

These days one needs to start very early in the morning if one wants to "front-run" the rest of the crowd.

Fri, 02/01/2013 - 11:11 | 3206154 tip e. canoe
tip e. canoe's picture


(from the creators of Meet Your Strawman)

Fri, 02/01/2013 - 11:00 | 3206111 Cursive
Cursive's picture


My take is that we've got first-of-the-month 401(k) funding, so the market makers were bidding this market up to have those retailers purchase at higher prices and the market makers plan to sell into that strength all day today.

Fri, 02/01/2013 - 10:58 | 3206095 LawsofPhysics
LawsofPhysics's picture

Where is this "market" you speak of.  By the way, I'd say it is more cognative dissonance than schizophrenia.

Fri, 02/01/2013 - 11:00 | 3206112 buzzsaw99
buzzsaw99's picture

Does this mean Ann Margaret is NOT coming?

Fri, 02/01/2013 - 11:01 | 3206115 lunaticfringe
lunaticfringe's picture

Its POMO magic!

Fri, 02/01/2013 - 11:04 | 3206123 fuu
fuu's picture

Schizophrenic? I thought this was the new normal.

Fri, 02/01/2013 - 12:23 | 3206423 TheCanadianAustrian
TheCanadianAustrian's picture

"Schizophrenic" means paranoid. Why do people use that word when what they're really trying to say is "confused and inconsistent"?

Fri, 02/01/2013 - 13:13 | 3206587 fuu
fuu's picture

The "market" shows a remarkable amount of waxy flexibility.

Fri, 02/01/2013 - 11:06 | 3206131 fonzannoon
fonzannoon's picture

I just took a piss and gold is down $12 in that

Fri, 02/01/2013 - 11:09 | 3206148 viahj
viahj's picture

well, don't pee again pleaze!

Fri, 02/01/2013 - 12:03 | 3206375 Colonel Klink
Colonel Klink's picture

Talk about a gold-n-shower.  Or was that Goldman shower.  Keep getting them confused.

Fri, 02/01/2013 - 11:07 | 3206137 disabledvet
disabledvet's picture

"there is no recovery." period. yet inflation trades are VERY hard to unwind...they never really are actually as the entire business enterprise must be looted before the equity will finally succumb. having said that i think many US banks and financial institutions are going to be net importers of gold soon which should be both dollar supportive and gold supportive as well. "the claws of deflation" are starting to dig in and with so much "excess everything" sloshing around i think the idea that "you can just print your way out of this" is fast becoming an illusion as "now nobody has any money." Long Columbus, Ohio...and Columbus Georgia too.

Fri, 02/01/2013 - 11:22 | 3206210 LawsofPhysics
LawsofPhysics's picture

Well put.  Long anywhere you can grow your own food, keep your tribe organized, fed, and armed.

Fri, 02/01/2013 - 11:06 | 3206140 MFLTucson
MFLTucson's picture

This is fraud, the US markets are courrpt and out of control.  Deception seems to be the moving target!

Fri, 02/01/2013 - 11:08 | 3206146 Squid Vicious
Squid Vicious's picture

Just put on my Dow 14000 hat, woohooo 15000 next!

Fri, 02/01/2013 - 11:09 | 3206149 fomcy
fomcy's picture

What happened with GOLD again? Both GOLD and Silver Candles on 30m are Jumping up and down
like this is a 1 min chart.. Got up $20 and immediately down $20 ones get dangerously
close to $1700/oz mark. I'm pretty sure that this level gets defended by FED+Banksters from
JPM and GS.. Every time Gold nearing $1700/oz there is Ben with the sledge hammer getting
it right in the head. When this manipulation is going to stop? If ever?

Fri, 02/01/2013 - 11:21 | 3206199 Winston Churchill
Winston Churchill's picture

When the demand for physical delivery overwhelms the paper manipulation.

How much unencumbered gold is left in Ft. Knox ?

Fri, 02/01/2013 - 11:10 | 3206152 thismarketisrigged
thismarketisrigged's picture

gdp contraction , bad fed data, unemployment rises, non farm payroll jobs below expectations= we ignore it.


ok ism data, decent consumer confidence,- we shoot up to near new highs.


u cant make this shit up.


dont worry, we will see a massive sell off next week, the dow may lose a total of 5 pts, and the s&p may lose 1 pt. that will be our massive correction, than a big uptrend to down 15550 and s&p 1600

Fri, 02/01/2013 - 11:21 | 3206161 Artful Dodger
Artful Dodger's picture

Market: you win. I am baffled with bullshit. Every day. You will go up 3% a week forever. You are not a bubble. A 20 cent drop in SPY is a "buying opportunity".

Edit: oh yeah, and nothing is EVER priced in. Even at 5 year highs. If it's bad, it's good, if it's good, it's good, if's it neutral, it's a reason to sell volatility.

It's a POMO day.

Fri, 02/01/2013 - 11:29 | 3206247 fomcy
fomcy's picture

Fed Bullard Constantly jawboning around QE, which effects Gold. Just couple of weeks ago on Interview with Liesman he said: " Who sad we targeting exact date or Year with QE? We targeting 6.5% Unemployment rate.." And just now he said: DJ FED's Bullard: Favors Idea of "Tapering" QE ???? What? Unemployment just rise to 7.9%? That's what cause metals to drop sharply right on the spot.
Those guys in such mess, they cannot even make their minds..

Fri, 02/01/2013 - 12:22 | 3206418 dragoneyes74
dragoneyes74's picture

So much for a topping stick.  Luckily I've already learned the hard way not to catch tops.  The most reliable pattern in trading is divergence between price and RSI.  I'll wait patiently for that setup.  Maybe it will be well timed with the seasonal springtime short. 

The dollar's looking weaker every week.  I'd love to see it run down to its lows at 72 later this year, which would mean a truly retarded Euro price, but I guess it truly is all relative.  


Fri, 02/01/2013 - 12:45 | 3206485 Archetype
Archetype's picture

Dollar is about to krasch.

Fri, 02/01/2013 - 14:05 | 3206770 Smuckers
Smuckers's picture

Their stats for consumer confidence is probably captured by counting the number of happy fat zombies buying half-priced iphone cases at Walmart.

Of course, also conveniently placed beside the tins of cat food.



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