Three Macro Monetary Morphine Charts

Tyler Durden's picture

Presented with little comment but it would appear that it is not just the American investing public that believes in miracles as the Japanese and European equity markets are now fully disconnected from dismal macro reality...

The US Disconnect...


The European Disconnect...


The Japanese Disconnect...


Charts: Bloomberg

Bonus Chart: It's an epidemic - the world's equity markets do not care (yet) about the slump in the global economy...

Because, It's Different This Time, right? Hhhmm not so much...

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wee-weed up's picture

Well, pop mah bubble!

Croesus's picture

Pop Quiz Time:

Which one is most likely telling the truth?

A) "Yes, it's coming back, and Happy Times are here to stay.....I sell them, so I know!". - Politicians, Realtors and Stockbrokers

B) "It's FUBAR, and getting worse, so buy MOAR Phyzz".- Gold Market Commentators

C) "It's going to go to $100,000, and we'll all be rich. There's only going to be 21M of them" - The Bitcoiners

Glass Seagull's picture



My hands felt just like two balloons...

fomcy's picture

My neighbor ask me how and where to buy GOLD (What?????), he's actually never ask that type of questions before, even in 2008. Whatever "they" do in the short term, they going to be sucking big donkeys c*ck pretty soon, all of those drunk ANALysts on CNBC and Bloomberg as well.
Mr. BernakQE we need more QE, so we don't care about unemployment ones and for all.

ebworthen's picture

Wow, look at Japan, talk about a disconnect!

Watch the funds sell in May, Ben come out with some new QE (direct purchase of Index funds?), and algos to BTFD .0005 seconds before the announcement of the new QE gravy.

Devils Advocate's picture

Can this euphoria stop, I want to puke at the irrationality!

ncdirtdigger's picture

Everybody's a winner, STEP RIGHT UP!

Sudden Debt's picture


hooligan2009's picture

you doing the happy dance? heh

Headbanger's picture

It's Wiley Coyote standing in mid air after running off the cliff again!

sawman's picture

Every retail investor I know wouldn't touch these artificial markets with a 100ft barge pole so whoever is ramping them up I'm pretty sure it's not the investing public. That's what they'd like us to believe as people feel better following the herd.

chancee's picture

If there's anyone who still thinks this market is real... See:  ES Futures last half hour of day.

fonzannoon's picture

As well as I can remember it, in 2000/2001 nobody thought we were in a bubble. In 2007/2008 some people thought we were in a bubble. Now everyone knows it's a bubble.

augustusgloop's picture

third bubble in a little over a decade.

first bubble people lost their investments due to participation in dot com bubble

second bubble people lost their homes 

third bubble people will lose what's left of savings that was the collatoral on a sea full of london whale's index bets.

WTF_247's picture

ES is used for manipulation.  The backoffs are orchestrated and easily undone.  They backed ES off 7pts from hod and undid most of that in about 10 min right into the close.  The momo seek algos place 1000s of buy orders to jam the market then hold it up/bid it.  Shorts try to fade it and get nailed.  Happens most days like clockwork.  Once the V happens the selling is done for the most part.

Since there is no selling to stand up to the same manipulation higher day after day after day, they will continue to do it until it is unprofitable to do so.

the not so mighty maximiza's picture

They are looking for bag holders.

WTF_247's picture

Every dip is rescued out of nowhere with massive buying - they did it again today - a backoff that takes a few hours is undone in 10 min.

The premise is correct however the conclusion seems suspect in terms of timing.  If the fed is in there actively manipulating the market higher with the help from the momo algos it is going to be very tough treading to position for the inevitable crash. Rescue happens every time like clockwork since mid Dec - if not the same day (rescue) it is 100% rescued by the open the following day.  Other than a few select names there is next to no real selling.  

Even from here I would not put it out of the realm to have it push another 4-6% higher straight up to really punish anyone betting against the market.  Once everyone gives up trying to position for a correction it will inevitably happen.

The one shocker is funds sitting on massive profits are showing very little evidence that they want to lock in some profits at these levels - that is usually how a correction starts.  1-2 hours of selling is not locking in anything - it is merely used to ramp even higher when the market turns up again.  To the contrary, they seem to be quite content to repeatedly chase big cap stocks up 15-30% at all time highs and add to positions further.

fonzannoon's picture

Most hedge funds are trailing the market or choking on apple or both. They ain't selling in May.

Yen Cross's picture

      Don't look at this chart if you're in a bad mood, after watching the POMO ramp today. You might go apeshit and break something.

fonzannoon's picture

if we are all in complete agreement that this market is massively manipulated to create the wealth effect than does the fact that we all think it has to crash make us completely insane?

McMolotov's picture

If you see a house which looks sturdy from the outside, but you know the inside reveals the framing to be rotten and held together with duct tape applied haphazardly by a bald, bearded hermit with a PhD, you aren't insane for telling people the house will eventually collapse.

We're all going a little crazy, though.

"You shall know the truth and the truth shall make you mad." —Aldous Huxley

fonzannoon's picture

I'm mad as hell, and I'm going to keep on taking it!

Radical Marijuana's picture

Well, McMolotov, the more radical truth is that the world is "mad," in the sense of insane, since the world is more than 99% controlled by lies, in the form of endless, runaway, financial frauds. Since the foundation of these systems is fiat money, made out of nothing, as debts, the foundation of these systems is NOT directly connected to the laws of nature, where nothing can be made out of nothing. However, these fiat money frauds are able to operate "markets," because IN THE REAL WORLD, FIAT MONEY IS INDIRECTLY BACKED BY MURDER.

These alleged "markets" are becoming more and more distorted by the effects of the triumph of organized crime, taking control over governments, to legalize more frauds, backed up with more force. Since the biggest gangsters are the banksters, with awesome abilities to influence governments to legalize fiat money frauds, and also force everyone else to accept those frauds, these "markets" are automatically diverging from reality.

In the past, when those effects got sufficiently large, the "market correction" was to start wars. These days, it is almost impossible to judge from history what will happen in the future. Although the laws of nature never stop working, the convoluted ways in which forced backed frauds develop blew one bubble, after another, which popped, and popped ... Given that we are now looking a global bubble of electronic fiat money, measured in the quadrillions of units, backed up by weapons of mass destruction, also measured in the quadrillions of units, any popping of such astronomically sized bubbles has no precedent in known human history!

Since everything is operated through a fundamentally fraudulent financial accounting system, which benefits a few fantastically, while it screws everyone else, and yet, everyone else, through power of "their" governments, FORCE EVERYONE TO ACCEPT THAT FRAUDULENT FINANCIAL ACCOUNTING SYSTEM ??? ???

"... it is not just the American investing public that believes in miracles as the Japanese and European equity markets are now fully disconnected from dismal macro reality ..."

The foundation of the global economic system is magical thinking, since the global monetary system is a state religion, with faith-based money. There is no other significant form of money left than faith-based money. However, the REAL way that faith-based fiat money works is that it is enforced by governments, who can back up their laws with murders. (Imposing taxation, that must be paid with the legal tender, which is that faith-based fiat money, is what MAKES that money be money. Since taxation and legal tender laws are enforced by governments which can murder those who resist, the end result is that faith-based, fiat money IS actually backed by murder.)

The "investing public" has no choice but to continue to "believe in miracles!"

However, faith-based money becomes automatically disconnected from reality!

For generation after generation, all of us have been forced to live inside of a monetary system which is our state religion. The high priests of that religion are those who are closest to the magic of being able to make "money" out of nothing. Their ability to profit from the awesomely powerful privilege of legalized counterfeiting enabled them to become even more wealthy, and even more able to use that wealth to corrupt the political processes even more. Thus, the high priests of fiat money were able to take over the schools and the mass media, in a vicious spiral of the triumph of the methods of organized crime, developing a money system backed by murder, which more than 99% of the people did not understand, and did not want to understand. The protracted history of War Kings, evolving into sovereign states, which were covertly taken over by the Fraud Kings, the banksters, is what has made us all mad. Thus, the basic realities of the laws of nature, as they manifested within human civilization, have become runaway magical thinking, taking the form of various beliefs in miracles, which are disconnected from reality.

The only way to reconnect money with reality is to connect money with murder, since that was ALWAYS the reality! Since 99% of the population does not want to do that, and those who do do that are those who dissemble about that the best, it is impossible to predict how mad civilization could become ...

Since everything we are doing is controlled by legalized lies, backed by legalized violence, operating a fundamentally fraudulent financial accounting system, where the real connections between money and murder are deliberately denied, and as socially suppressed from consciousness as possible, we have no way to guess how this will eventually turn out ... However, there is no doubt that, IF it were possible to chart out anything more deeply and directly related to human and industrial ecology, then the divergences and disconnections of the financial numbers from the real world would be way, way worse than those charts in that article above reveal.

Everything human beings are doing is more and more based on believing in miracles, because they operate within their state religion's faith-based monetary system, wherein the realities of the murders that have backed that up are almost totally taboo topics. In the past, when the bubbles of financial frauds popped badly enough to cause serious economic depressions, that resulted in wars. However, now that there is a global electronic fiat money system, backed by atomic bombs, we have no good ways to comprehend, or even imagine, what will happen if, or when, the financial bubbles pop badly enough to drive more serious wars ...

Since more than 99% of the population do not want to understand any of that, what the 1% who have been covertly driving these things are going to actually do remains to be seen ...

hooligan2009's picture

only if you have never been bullish before a 50% rally :>)

earleflorida's picture

'the irrational  theory of relatvity?'

    'the moment is nigh, the event is flashing tell-tale signs... the horizon has run out of 'matter-or-facts'... as the compression vacuum belches for moar, but there lies the rub... the universe plays not casino dice, nor does it like to play ponzi,... indeed, it too must follow the rules of relativity and so be it as it was in the begin, the great reset... it too has been forced to feed off of mankinds greedy, and dil`illusory energy?'

oh the horror...

q99x2's picture

Ok the graphs are compelling. Guess we will see how effective Bernanke's computers are.

Bear's picture

People getting out of Dollars, Euros, and Yens and getting into Equities ... Supply and Demand