Macro Collapse Pushes S&P 500 To New All-Time Nominal High And Close

Tyler Durden's picture

"Horrible" PMI, no problem; just add it to the list of macro data that has missed significantly in recent weeks. Bloomberg's US Macro index has utterly collapse in recent weeks - now at its worst level in 7 months but apparently if good is good, bad is better, and totally shitty is absolutely awesome. It would appear the world of nominal equity index chasers is now fully cognizant that the reality of their lemming like herding is based on one simple thing (no matter how much they kick and scream and proclaim wisdom about earnings cycles, growth, margins, transformative energy, or new AAPL products) - and that is... Central Bank promises.

And just to timestamp this, both the closing print, or right around it, and the all time nominal intraday high, coincide.

If the Fed needed any ammo for tomorrow to hint that there is a time frame longer than infinite and that there is a size of imprudence larger than infinity, then they have it... of course, there is, once gain, very weak volume on this uptick (but like everything else, that doesn't matter either.)



So what does more CB exuberance mean for Gold?

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Spastica Rex's picture

Reality is for pussies.

flacon's picture

"Let me take you down, 'cos I'm going to Strawberry Fields.

 Nothing is real and nothing to get hungabout.

Strawberry Fields forever."

~ Beatles

Mark Carney's picture

Ya, but BANKIA for the WIN!!!!1!!! lol 700% highs

Dr. Richard Head's picture

Hearing of rumors of a "big boom" that was just heard in Times Square.  Can anyone confirm?

Dr. Richard Head's picture

Scratch that.  it was a battery from a lift that exploded.

Carry on.....

And I'm in Ohio.  Lordy.

francis_sawyer's picture

Last time that happened, Charlie got the keys to the chocolate factory...

Manthong's picture

"totally shitty is absolutely awesome"

sounds like a good reason for another drink to me

malikai's picture

Congrats S&P on this historic non-event! Here's today's fantastic gains priced in BTC.

SeattleBruce's picture

Isn't that a quote from Orwell's 1984?

MythicalFish's picture

More shitty news from China, MSM salivating.


Pure Evil's picture

Or, maybe Queen Bloomberg's head exploded.

Panafrican Funktron Robot's picture

Of the 28 global banks the consulting firm looked at, only three -- Goldman Sachs (GS), Deutsche Bank (DB), and JPMorgan Chase (JPM) -- will be able to remain at their current size, according to BCG.


Color me super fucking surprised.

Manthong's picture

cool..  one thing though..  GS as a bank  brings to mind George Carlin’s seven words and..

““tits” shouldn’t even be on the list”

SheepDog-One's picture

I'm probably the oddball on this...but I always hated the fucking Beatles. Nothing to get hungabout though I guess...WTF is that word supposed to mean anyway, I think they just made it up.

MisterMousePotato's picture

The stuff George Harrison wrote was pretty good, though.  Too bad Lennon and McCartney wouldn't give him his due.

LooseLee's picture

George has always been my favorite. Then the group; then Lennon

Randall Cabot's picture

But the S&P roller coaster only goes up!

THX 1178's picture

The S&P is for savvy investor-kings.


Groundhog Day's picture

so close to the 1600 party.  I 'm getting anxious to crack open the 1984 Dom.  I thought it would be today for sure

THX 1178's picture

15,000 DJIA is equally close. SO. CLOSE.

Law97's picture

Broke pussies, especially, Bob.

SheepDog-One's picture

Any little drop must be immediately recorved, plus some more....the 'new normal' of the Cuckoo's Nest.

Bay of Pigs's picture

"if good is good, bad is better, and totally shitty is absolutely awesome"

A ZH classic...nice one Tyler(s)

Pure Evil's picture

Maybe they can make a new movie with it.

The Good,

       The Better,

             and The Shitty

sunny's picture

When Kyle Bass was asked how long the markets would continue to grind up, he simply said, "As long as the Fed prints."  So far this looks like the best bet going for understanding how the markets will behave.  Nothing else matters.


new game's picture

grinding defined: separation of money for precieved gains sometime in the algo future.

separation by grinding, incremental.

TrustWho's picture

The Feds are flooding the market with fiat money. How can they also depress the price of GOLD? How long can they continue depressing the gold price?

eclectic syncretist's picture

I don't know how long they can keep a lid on PMs, but I know my junior miners took off this afternoon!

Abraxas's picture

Mine too, but to 10% of the price I paid for them.

prains's picture

exactly, that's a big hill of blood to climb back up, to even see the light of day again

Supernova Born's picture

Is there any central bank that advocates a return to a gold-backed currency?

Yet most central banks continue to buy gold.

What is the reason for these purchases?

To control the gold market. CBs own the lion's share of the world's gold and they use that gold to keep gold from becoming an alternative to their fiat paper.

Gold doesn't "back" a single major currency in the world today. Gold is far more likely to undermine baseless fiat and CBs know it.

Bernanke lied when he said it was "tradition".

CBs hold gold so they can manipulate gold when it threatens their baseless fiat monopoly.

Tulpa's picture

But they can only manipulate by selling it, and once buyers start demanding phys (which seems to be snowballing now) that means the more they manipulate the less control they'll have in the future.

Pure Evil's picture

That's all true, but do we know exactly who they're selling it to. More than likely each other. So in all reality no physical gold moves, just adjustments made to a spreadsheet.

Supernova Born's picture

The extent to which the world has flown from reality on wings of baseless fiat cannot be overstated.

They can print any amount of money. Gold has a finite price. They could buy all that was available or they could ban its sale.

Gold cannot rise to market without a sovereign backer who steps away completely from the baseless fiat table. Sovereigns presently prefer money printing.

It will take a Black Swan event to force a sovereign to prefer the reality they've earned over the fantasy the debtor world wants to preserve.

Tulpa's picture

But in that case they're buying exactly as much as they're selling and not having any net effect on the price. To suppress the price they have to force other sellers to lower their asking price by stealing buyers.

akak's picture

SupernovaBorn stated:

CBs own the lion's share of the world's gold

But this is simply not the case --- world central banks only hold around 15% of the known world's gold reserves --- and that is IF one accepts their stated reserve values as the truth, which at least in the USA's case I believe to be laughably high.  It would not shock me in the least if the US Fed and/or Treasure did not posess 10% of the physical gold which they claim to hold.

Supernova Born's picture

Central bank holdings (China's most importantly) are a "known unknown" so my making reference to what is held by CBs was erroneous.

LooseLee's picture

My 'cash' position has been going to select juniors for the past month. I am down to very little 'dry powder'. I'm short the NAS, RUS, and SP so when that dog finally hunts I will deploy those funds into G&S juniors. I have plenty of physical...

helping_friendly_book's picture

They can depress the price of gold with a drop in the market. If the price of gold gets to high they make the dow drop 120 points and people have to sell their gold to meet margin requirements. Then the game starts over and the market creeps up, gold breaks $1500/oz, take the Dow down, margin call to cover your market loss so you sell some gold and the price of gold drops.

Cursive's picture

Well, I did say SPX1600 was worthy of the WTF subReddit.

Cognitive Dissonance's picture

Silly Tyler.

All your broken correlations are belong to us.

SheepDog-One's picture

It's all a big party and everyone always believes it will never end, they're all having so much fun and all....then the bill innevitably arrives and everyone is all 'OMG' all of a sudden.