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Volumeless Equity Surge As USD/Gold End Day Unch

Tyler Durden's picture




 

Surprise - equities rally on volumeless (25% below average volume in S&P futures) and low average trade size trickle to Thursday's highs. Risk-assets in general traded in a narrow range and did not enjoy the after-lunch 1% linear ramp anything like as much as stocks. Market breadth (TRIN) was not in any way impressed with the indices - which staged a viagra-like ramp in the last few seconds entirely ignored by the underlying stocks themselves. A 0.5% rise in stocks was accompanied by a 3bps rise in Treasury yields, Gold and Silver ended the day unchanged as did the USD (even as GBP rallied 0.5% and AUD rallied around -.8% from its overnight gap down lows). WTI recovered off its lows back above $90 by the close. VIX remains decoupled from stocks but dropped tick for tick as they rallied today - almost back to 14.0%. Meanwhile, AAPL slipped 2.5%, JCP over 5%, and MBI popped 24% on a legal win against BofA.

 

And so we find ourselves, a week from the Italian election and the scores on the doors are: ES +2pts, 10Y -13bps, USD +1.5%, WTI -$4, Gold -$15... magic..

 

no volume ramp...

 

This afternoon's run for the hills in stock indices had an odd feel to it (don't they always) as risk-assets in general were not at all impressed...

 

S&P 500 index vs market breadth (TRIN) - didn't seem like anything but stop-running in the indices...

 

and increasingly it seems like a pure run-stop for Thursday's highs and the up-trend channel...

 

And VIX remains a little more hedged that equities would like it to be...

 

Charts: Bloomberg And Capital Context

 

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Mon, 03/04/2013 - 17:27 | 3298960 diogeneslaertius
diogeneslaertius's picture

no unicorns were harmed during the making of this film

Mon, 03/04/2013 - 17:52 | 3299047 AllThatGlitters
AllThatGlitters's picture

Look at silver ready to pop right when everybody thinks it's gonna crash:

http://www.pmbull.com/silver-price/daily/

- Dealers on that page are still offering for $0.50 - $0.80 over spot too.  

Gold has already started climbing off the bottom of its range:

http://www.pmbull.com/gold-price/daily/

- Dealers on that page are offering 1 oz bars for just $25 over spot.

 

Are the dealers expecting the metals to break down this time? You'd think so with the firesale pricing, but it doesn't matter cuz they are hedged.  

They were actually higher priced at the top of those ranges.

Mon, 03/04/2013 - 19:28 | 3299257 DoChenRollingBearing
DoChenRollingBearing's picture

We are now in Cajamarca, Peru.  Famous for where Pizarro held the Inca King Athualpa hostage for a room full of gold and two of silver.  The Incas paid up, but Pizarro strangle him anyway.  

***

Pictures coming...

Any wonder why they hate the Spaniards here?

Mon, 03/04/2013 - 19:51 | 3299327 Stock Tips Inve...
Stock Tips Investment's picture

The gold price is ready to rebound. In the following days we will see if this bounce will give life back to gold.

Tue, 03/05/2013 - 08:20 | 3300314 samcontrol
samcontrol's picture

because they beat them to death telling them god is great?

Mon, 03/04/2013 - 17:28 | 3298968 redpill
redpill's picture

Sell algos just took one of those long lunches that turned into a happy hour

Mon, 03/04/2013 - 17:28 | 3298969 DaveyJones
DaveyJones's picture

it's those valueless equity surges that concern me

legally speaking

equity is extinct

Mon, 03/04/2013 - 19:00 | 3299180 Cdad
Cdad's picture

Boy, the Fed sure is doing a great job regulating these 19 TBTF banks that it saved...you know, keeping an eye on the flash crashes, surges, and the pure theft that goes on during a day like today.

 

Mon, 03/04/2013 - 17:28 | 3298971 Hedgetard55
Hedgetard55's picture

AAPL still getting cored. $400 and below next?

Mon, 03/04/2013 - 17:56 | 3299052 gjp
gjp's picture

Yet tech bubble-thought is alive and well.  AMZN, CRM, LNKD, GOOG, everything but Apple.  Look at what those stocks did today!  No bubbles here, no sir.

Day-traders riding the fed coatails are multiplying like scum in a petri-dish.  Every message board is basically, shut up, fundamentals or valuation don't matter, the stocks are going up, Ben's got your back.  And the sickest part of it is they are right.

Mon, 03/04/2013 - 17:59 | 3299056 jeebus
jeebus's picture

They are right until there is a black swan. The black swan is hiding but getting ready to stick her head out soon I feel. The world is like a minefield right now and something will set it off.

Mon, 03/04/2013 - 18:59 | 3299179 akarc
akarc's picture

Me thinks it is in plain site just nobody wants to see it. This has gone beyond insane to terrifying!

Mon, 03/04/2013 - 19:02 | 3299187 Cdad
Cdad's picture

Terrifying? Na ah....the Fed is regulating just fine.  Free computerized market in action.  It's all good.  This is RECOVERY.

Mon, 03/04/2013 - 20:58 | 3299506 HulkHogan
HulkHogan's picture

.

Tue, 03/05/2013 - 08:21 | 3300315 samcontrol
samcontrol's picture

no , 420 is the bottom...."watch"

Mon, 03/04/2013 - 17:30 | 3298977 davhay
davhay's picture

Stocks took off because Yellen said QE forever again.

Mon, 03/04/2013 - 17:32 | 3298982 FreeMktFisherMN
FreeMktFisherMN's picture

Marc Faber's call on Bloomberg a few months ago to buy machine guns probably would have wound up a heck of an investment. Proxies RGR and SWHC certainly charging ahead.

Mon, 03/04/2013 - 17:38 | 3299018 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

up to 1530, down to 1522 up to 1540ish...and then it possibly gets a little frayed. Of course, at that time, the whole msm band will be playing "Buy, Buy Baby"...I sense an impending irony in those lyrics.

Mon, 03/04/2013 - 17:48 | 3299043 JustObserving
JustObserving's picture

Central Banks gaming gold per Eric Sprott:

 

"This will sound like a conspiracy theory, but unusual things are happening in the gold and silver markets.

For example, on Feb. 19, nearly an entire year's supply of gold traded on the Comex in a single day. The same volume of silver trading happened on the commodities exchange. You and I both know that the people selling that much metal cannot deliver it because it is just not available. Yet somehow they are out there, pounding down these contracts and keeping the price suppressed..

I would hypothesize that the central bankers know their policy of printing money is the most irresponsible thing imaginable, and they are suppressing gold and silver prices to hide their irresponsibility. When one is printing that much money, gold and silver prices are the first things you would expect to rise. If we saw gold going to $2,000/oz, the price of oil would probably go to a new high and the price of agricultural commodities would go up. Then you would have a huge inflation problem on your hands.

Based on my research, I believe the Western central banks have been surreptitiously supplying gold to the market. I say this because the demands I see for physical gold are way beyond the supply of gold. The annual gold supply has not changed in 12 years, and demand just keeps increasing from China, India, the U.S. Mint and silver and gold coin sales; even the non-Western central banks are buying gold. Where is this gold coming from? I think the Western central banks are selling gold to keep the lid on the price so everyone thinks their monetary policies are benign. Nothing could be farther from the truth."

http://www.theaureport.com/pub/na/15052

 

 

Mon, 03/04/2013 - 18:14 | 3299069 Monedas
Monedas's picture

Sending Dennis Rodman to North Korea would be a good distraction ?  Hope and change .... but, unfortunately it does not increase the above ground supply of gold !   LOL    I love the desperate theatre aspect of the farce !    "I love my life !" .... Frank Sinatra in Pal Joey

Mon, 03/04/2013 - 18:19 | 3299094 Tsar Pointless
Tsar Pointless's picture

BTFD, bitchez.

BTFD.

Mon, 03/04/2013 - 18:22 | 3299102 angel_of_joy
angel_of_joy's picture

My pleasure... PM physical only !

Mon, 03/04/2013 - 18:20 | 3299097 chump666
chump666's picture

The sucker punch for Wall Street will be Asia's problems, which will make Europe look like nothing.  We got a warning shot from China.  From the get-go the EUR went bid, protected by ECB/FED swaps on the 1.30 support, and of course futures got HFT support all Asian session. Whilst the Wall Street darling and 'white knight' of Europe (that being China) tanked over 3% negative.

 

Mon, 03/04/2013 - 18:28 | 3299111 atoast2toast
atoast2toast's picture

this post is a joke - total volume traded today was 1.9 Million - 2013 avg is 1.6 Million 

http://atoast2trading.files.wordpress.com/2013/03/es_composite_candles1....

60k more were bid than asked 

Mon, 03/04/2013 - 18:38 | 3299131 NotApplicable
NotApplicable's picture

Why would you call your own post a joke? IMO, that's taking self-referential statements just a bit too far.

Tue, 03/05/2013 - 04:35 | 3300167 atoast2toast
atoast2toast's picture

I doubt you really are that stupid. This 'story' is a blog post - what I wrote was a comment on a blog post.  

Maybe you would prefer if I wrote instead "the world is doomed" or "gold bitchez"

 

 

Mon, 03/04/2013 - 18:42 | 3299139 Edward Fiatski
Edward Fiatski's picture

That lower part of the trendline channel on the SPY looks mighty dangerous - We stop here! Unless BEN goes stop-hunting.

Choo-choo! Chuga-chuga-chuga-chuga! Choo-choo!

Mon, 03/04/2013 - 20:41 | 3299464 Shizzmoney
Shizzmoney's picture

What happens if AAPL goes under $200?  $100?

Does "The Market" even care, considering it's just run by the Gordon Gecko version of SkyNet, at this point?

Mon, 03/04/2013 - 20:50 | 3299480 orangegeek
orangegeek's picture

Today's SP500 daily.  Volume is tanking.

 

http://bullandbearmash.com/chart/sp500-daily-pushes-higher-record-high/

 

Low volume usually occurs at the end of a consolidation or near a top.  Should be interesting to see if this market holds this week.

Mon, 03/04/2013 - 21:21 | 3299561 lickspitler
lickspitler's picture

As governments debase their currency's , it looks like the tangible asset of choice is productive companies , not PM.

Mon, 03/04/2013 - 21:49 | 3299623 exartizo
exartizo's picture

what are the chances they've beaten down gold in premeditated anticipation of a US/Israel strike on Iran?

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