Dow Jones At New All Time Highs - Here's Why

Tyler Durden's picture

Curious why the Dow Jones Industrial Average just hit new all time highs? Here's a partial list of recent economic events:

  • Markit US PMI    Miss
  • ISM Manufacturing    Miss
  • ISM New York    Miss
  • Vehicle Sales    Miss
  • ADP Employment    Miss
  • ISM Services    Miss
  • Challenger Job Cuts     Miss
  • Initial Claims    Miss
  • Trade Balance    Beat
  • Non-Farm Payrolls    Miss
  • Hourly Earnings    Miss
  • NFIB Small Business    Miss
  • Wholesale Inventories    Miss

And that's ignoring the absolute economic collapse in Europe, the Chinese slowdown, and the Japanese economic basketcase.

What is there to even say anymore: Stalingrad 4 Eva! Remember: central planning works.


and if pictures are better than words...

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agent default's picture

QE to hell and back.

hedgeless_horseman's picture



Most people do not understand real versus nominal returns.

If you have a share of XYZ that is valued at $100, and the value of the dollar decreases by 50%, then the share of XYZ is now valued at $200, eventhough the underlying value of the XYZ company did not change.

Stock indices like the DJIA are measured in dollars.

If we shorten the length of a mile, then Dallas is farther a way, but only in miles.

Dr Paul Krugman's picture

Like I wrote below, Bernanke said as much at his last press conference.

Say What Again's picture

When this bubble pops, we're gonna see shit that never happened in our lifetimes.

So I guess this time it IS different.

whotookmyalias's picture

I warned you all I was short. Time to close it for now and wait for the bubble to burst.

Skateboarder's picture

Up, up, and away.

To infinity, and beyond.

It's a bird, it's a plane, no - it's a Runaway Ponzi.


malikai's picture

"If you have a share of XYZ that is valued at $100, and the value of the dollar decreases by 50%, then the share of XYZ is now valued at $200, eventhough the underlying value of the XYZ company did not change."

One thing has changed. You are now liable for $100 in taxable "profit".

Congradulations on your win!!

N. B. Forrest's picture

Maybe it is the fact that in the TARP bill the Fed was authorized to by S&P futures to keep the market from going down. 

That might have something to do with it. 

And we all know how much money the Fed has...

Say What Again's picture

I just woke from a nap to a strange dream.

Is it possible that everything will be backwards today?

Will there be an epic sell-off at 3:30 today?

Maybe I'm still dreaming -- The Merican Dream

Manthong's picture

It would be a hoot if someone would post charts of the current market crash by pricing the Dow or S&P in  Bitcoin.

Say What Again's picture

I don't know how many of you are actually watching the data, but today has been strange.

I'm seeing trades above ask / below bid on major ETFs and large stocks.  That doesn't happen often.  When it does, its usually a result of various alternate venues (i.e., BATS, EDGX, etc) being unable to communicate with each other.

google "self help" AND bats to see what I'm talking about.

Say What Again's picture

Think about this...

We have about 15 more days of this bernank induced ramp-ogasm in front of us.

I wonder if the system can hold together for that long.

spastic_colon's picture

the start of today's later ramp also seems to coincide with the Fed today setting/announcing multiple price 5 day reverse repo's

RockyRacoon's picture

I'll go along with the significance of your pronouncement for the sake of making this argument:

If that is the case, why are we not reading that HERE at ZH?

Shouldn't that be a newsworthy event for the denizens of ZH?

If so, why aren't we seeing it as a major story?

Say What Again's picture

Who knows?

Maybe Nanex is working on the story now.

malikai's picture

I've been doing it. It's pretty spectacular.

Divided States of America's picture

Wow, they pumping the Dow laggards like MSFT, INTC and CSCO today....the PPT is focusing on the laggard Dow techs today.

hedgeless_horseman's picture



What will really bake your noodle is when you consider the capital gains tax on gold bullion.  The government prints dollars, causing the value of the dollar to go down, and the nominal value of the gold to go up, so when you sell the gold you owe a capital gains tax to the very same government, eventhough the real value of the bullion didn't change, only the value of the dollar.

However, some physical gold, such as coins, has no serial identification, and thus is notoriously difficult for governments to track and tax...

...and just another reason governments hate it so much.

Key-Rick's picture

No capital gains tax when the coin is used to pay for food, gas, bullets, etc.

Yet another reason why governments hate it.

herpderp's picture

GB Britannias are capital gains tax exempt too :)

fockewulf190's picture

Premiums suck though. You can expect the west will go strap-on anal regarding all capital, in any form, in ever decreasing amounts, once the Great Reset rips the world apart.

kill switch's picture

 I think you overestimate the capital gains tax delema as hundreds of thousands of boating accidents have made this moot. And it really is a tragedy.


The kill switch

New_Meat's picture

we all hate those delemas.

DaveyJones's picture

"Dow Jones at New All Time Highs"

Bernanke has it on medical marjuana

GolfHatesMe's picture

He must have put the Doritos in the upper Right

RockyRacoon's picture

Is is just me... or is it not obvious that the stock market ramp is the most obvious indicator of inflation?  Simply put, those who get their grubby hands on the new money first are the ones to profit.   I guess the markets will pump as long as the money supply is being inflated.   Stopping the printing won't make the already created money go away; it will just pass the inflation on down the line to those who can least afford the inflated fiat.

Like I say, is this just me?  How can one NOT expect the markets to behave this way?  Anyone who says there is no inflation must first explain the stock movements... fundamentally.  Good luck with that.

New_Meat's picture

rock, evidently it is JUST YOU, so cut it out and don't disturb anyone.

"You don't have to go home, but you can't stay here"

Now, move along ;-)

- Ned

RockyRacoon's picture

Thanks for the encouragement!   I guess that when a person is balls-deep in the stock market the obvious is easy to overlook.   Funny how that cognitive bias thingy kicks in.

MillionDollarBonus_'s picture

Doesn't matter. As long as stocks are making new highs, I'm a buyer.

Say What Again's picture


Nice to see you're back in one piece after that visit to the "hospital."

Please keep buying these new highs.  And if you run out of money, mortgage your house, then borrow moar fiat from your mother and repeat the process.

AGuy's picture

As Long as the Fed prints, there is no reason for a major correction, with exceptions such as NK lauching a nuclear attack or other simular events. Market is likely going up because they believe more QE is coming, or at least the Fed isn't going to take away the punch bowl with all these negative economic indicators. If the economic indicators were positive it would probably lead to a correction as investors would  fear the Fed is going to take the punch bowl away. This is simular to the situation back in 2004-2005 when the market popped on negative employment figues, and contracted when the employment figures were good.


RebelDevil's picture

Bitcoin is beating out stocks by a long shot! Stock owners are ignorant here. xD

MrNude's picture

I'll gladly pay you tuesday if you buy me some stocks today MDB....

spastic_colon's picture

todays ponzi brought to you by a most shorted s&p 500 stock........FSLR.....who is up on, wait for it......EXPECTATIONS (aka hope, sentiment etc etc)

Panafrican Funktron Robot's picture

It seriously looks set to gain 50% in one day.  Lets all keep in mind that this thing is on the weekly options list, this is a major stock symbol (ie., not a penny stock, at least not descriptively) that is traded by major institutions.  Normally you would only see this size gain as a result of M&A.  It's up 50% on.... 2013 full year guidance.

Holy, mother, fuck, is this market broken.  I really thought nothing would surprise me anymore.  This was surprising.

Randall Cabot's picture

The market is just frontrunning that Super EMP that Un is going to detonate over North America tomorrow-now that's BULLISH!!!

DaveyJones's picture

I think about that a lot. History runs in cycles its true but there had to come a time when the villains and the resource and the pollution and the debt would hit a global level and scale "never seen before" Lucky us.

Say What Again's picture

You and Forrest Gump

You're both geniuses.

hedgeless_horseman's picture



I'd like to teach the world to think
About some basic things.
I'd like to have them understand
The pain inflation brings.


hannah's picture

I'd like to teach the world to sing in perfect harmony.

I'd like to hold it in my arms, and keep it company

...I'd Like to Buy the World a Coke

francis_sawyer's picture

...was FINE ~ until you RUINED it...

TheSilverJournal's picture

Miss, miss, miss is exactly why highs are being hit. It's the good old "bad news is good news," as bad news means QE won't slow.

toady's picture

Yep, if the misses continue maybe they'll kick it up over 100B a month. Just think, now when the banksters get their bonuses they'll finally be able to afford that seventh yacht!

TheSilverJournal's picture

It's not a maybe that QE will be increased, it's a question of when. The only alternative would be to allow the global fiat monetary ponzi to immediately implode and then the central planners would lose a vast amount of control over directing resources to polically benficial parties.