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'New-Normal' Equity Highs On Lowest Futures Volume Day In Seven Months

Tyler Durden's picture




 

S&P futures volume was the lowest (ex-holidays) since October today and the intraday range was in stocks was practically its lowest all year. However, that did nothing to hamper the inexorable rise of stocks - though today was different. FX carry markets (JPY-based) were not supportive (especially AUD) as the main theme of the equity markets today appeared to be rotation - from defensives to aggressives. Correlations across asset classes were quite high as Treasury yields continued to push higher post-NFP (30Y +15bps holding at 2.99% since then). The credit fade from Friday gave way as HY especially snapped tighter in spreads catching up to stocks. Draghi's comments snapped EUR lower which provided the USD strength (but AUD also helped with its weakness). Gold ended unchanged as oil prices tested up to multi-month highs (Brent Vigilantes) before fading back a little.

 

Sectorsd today had a clear message - out of 'defensives' and into 'aggressives'...

 

as the short-covering was very active once again...

 

with credit snapping back tighter after fading friday's move...

 

AUDJPY was not the generator of equity movement today (as Treasuries took over)...

 

Algos were in charge once Europe's quiet markets were closed today - which likely explains the drop to VWAP into the cash close...

 

Market breadth also fell away after Europe closed...

 

but perhaps the only thing that can slow this rise in stocks is the price of energy...

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: AAPL's 10-day rise is up there with some recent bounces - none of which ended well - and pefectly tapped the 100DMA today...

 

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Mon, 05/06/2013 - 16:25 | 3535299 spastic_colon
spastic_colon's picture

no econ reports + POMO + AAPL POMO + GOOG POMO + {fill in the blank} = low volume levitation for the week

Mon, 05/06/2013 - 16:50 | 3535379 max2205
max2205's picture

Market wants moar qe.  Come on ben!

Mon, 05/06/2013 - 16:54 | 3535390 Manthong
Manthong's picture

More filling.. less taste.

.. or is that less filling, more taste?

Mon, 05/06/2013 - 19:01 | 3535801 asteroids
asteroids's picture

It only costs $4B/day to slightly levitate this market. That's approx $13/person/day (I hope I got that right). I think that's about $2500/yr, more or less. Disgusting eh?

Mon, 05/06/2013 - 16:32 | 3535314 SheepDog-One
SheepDog-One's picture

It's only 'inexorable' until suddenly it's not, whenever the banksters feel like beheading the muppets they will. 

Mon, 05/06/2013 - 20:56 | 3536164 Being Free
Being Free's picture

Something wicked this way comes.

Mon, 05/06/2013 - 16:31 | 3535318 Lost Wages
Lost Wages's picture

I've been putting bonds in my wife's 401K while everyone still hates them.

Mon, 05/06/2013 - 16:33 | 3535323 SheepDog-One
SheepDog-One's picture

Gee, well good luck with that.

Mon, 05/06/2013 - 16:37 | 3535329 Lost Wages
Lost Wages's picture

It's either that or stocks. The 401K is the only place I buy such things because there is no choice.

Mon, 05/06/2013 - 16:39 | 3535335 akak
akak's picture

Sure there is a choice: Withdraw the damned 401k and convert it into precious metals!

Failing that option, borrow against it and do the same.

Failing that option, quit the (likely dead-end) job and do option #1.

There are always choices.

Mon, 05/06/2013 - 16:41 | 3535340 Lost Wages
Lost Wages's picture

I'm sure this won't be the last time I post this here: YOU CAN'T WITHDRAW A 401K WHILE YOU STILL HAVE THE JOB YOU RETARDED DIPSHITS.

Borrowing against it is horrible advice.

Quitting a job is horrible advice.

We own precious metals. We cashed out our Roth IRAs. But there is nothing doing with the 401K, so give up your nonsense. Can't cash it out until she leaves the job. Can't leave the job until something better develops.

Mon, 05/06/2013 - 16:47 | 3535358 akak
akak's picture

Well then, you have made your choice to stick with your (likely dead-end, unfulfilling) job and your 401k, so what the fuck are you whining about?  You made your bed, so lie in it.

Mon, 05/06/2013 - 16:49 | 3535371 Lost Wages
Lost Wages's picture

If my wife didn't have her job, we would be homeless and starved to death. So why don't you think before you come online acting like a big radical? Not everyone here is a professional trader who works for themselves. Congratulations if you are the type of piece of shit who can do that.

Mon, 05/06/2013 - 16:54 | 3535391 Bay of Pigs
Bay of Pigs's picture

Calm down. Nobody is attacking your wife, her job or the tough financial choices you might have to make.

Mon, 05/06/2013 - 16:56 | 3535395 akak
akak's picture

 

If my wife didn't have her job, we would be homeless and starved to death.

You are undoubtedly correct, because of course there is only this ONE possible employment position for your wife in the entire world, and self-employment is of course impossible, and of course any loss of income on either of your parts would naturally result in immediate death due to starvation.

Drama queen much?

 

Mon, 05/06/2013 - 17:19 | 3535484 Lost Wages
Lost Wages's picture

Traders are all assholes and this is precisely why the world is in the state it is in. People like you. I don't understand why you feel like you have to troll someone who is making the best of a bad situation. My wife is working on bettering her opportunities, but it's not any of your business and I don't have to post my whole life story in every comment so that you know my whole entire situation and the last decade of my life. The hard part about reading these financial sites is pieces of shit like you with no empathy and no real advice. Just bullshit trolling. You are a piece of shit who deserves nothing but the worst. Take your money and shove it up your fucking ass, you trader prick.

Mon, 05/06/2013 - 18:34 | 3535705 akak
akak's picture

I am in no way a trader, so you can keep your assumptions about me to yourself.

Mon, 05/06/2013 - 18:46 | 3535717 EclecticParrot
EclecticParrot's picture

When folks who should be allies argue and it gets a bit nasty, I often find that an impromptu limerick can work wonders and lift spirits.  So, here you go:

 

On a very tall gal from Nantucket

was a rear-end shaped just like a bucket.

When she'd milk the cows,

‘twould raise the eyebrows

of young lads from Cork to Belmullet.

 

(by the way, I'm a trader, though a fledgling one who is just in the process of becoming regularly profitable after 1.5 years of toiling 10 hours a day (yay!) after first enduring 4+years of unemployment, using only a $400 dollar Dell and one extra $105 monitor from Wal-Mart.  Let me know when I reach the asshole stage so I can get a commemorative coffee mug.)

 

Mon, 05/06/2013 - 16:56 | 3535400 Precious
Precious's picture

The most important thing is to try to stay healthy.  The rest of it is just details.

Mon, 05/06/2013 - 16:50 | 3535377 moonman
moonman's picture

She can withdraw from the 401 (k) if you two get divorced, your house goes into forclosure or she dies. 

See she doesn't have to quit her job

Mon, 05/06/2013 - 17:00 | 3535419 Precious
Precious's picture

PS.  Only option 1 and 2 are discretionary.

Mon, 05/06/2013 - 16:45 | 3535356 web bot
web bot's picture

Mr. Akak... a prophet is never a prophet in his own land...  :(

They'll never learn...

Mon, 05/06/2013 - 16:39 | 3535338 mayhem_korner
mayhem_korner's picture

 

 

How much is the tax-deferral worth if it's confiscated?

Mon, 05/06/2013 - 16:47 | 3535361 Charles Nelson ...
Charles Nelson Reilly's picture

$1 million Bernanke bucks... or a quart of Maneschiwitz Matzoball Soup.

Mon, 05/06/2013 - 17:06 | 3535443 Precious
Precious's picture

Obama says nobody needs more than 250 dollars income per year from their IRA.  

Hell, his own brother gets by fine on half of that.

Mon, 05/06/2013 - 16:44 | 3535344 Everybodys All ...
Everybodys All American's picture

for god's sake use the money market or cash. Bonds are not safe and the stock market is worse as far as risk right now. Go to cash equivalents which should be a money market instrument. If your wife's plan does not have this you are at risk of a 2008 disaster.

Mon, 05/06/2013 - 16:47 | 3535360 Lost Wages
Lost Wages's picture

There is no money market or cash option. There is a "stable value" fund that stays locked at $1/share and is filled with *gasp* more US Notes, Treasuries, Fannie Mae, ABS, etc. It's either stocks or bonds and the closest thing to cash (the stable value fund) isn't cash at all. So it's really bonds or stocks for a choice here. Nothing else. No such thing as cash in this universe.

Mon, 05/06/2013 - 18:19 | 3535658 SheepDog-One
SheepDog-One's picture

It's either 'stawks' or 'bawnds'? Wow, thats fucktarded.

Mon, 05/06/2013 - 16:37 | 3535331 akak
akak's picture

That's like wishing "Good Luck!" to the person jumping from the top of the Empire State building.

Luck has nothing to do with their inevitable fate.

Mon, 05/06/2013 - 16:48 | 3535366 Goldilocks
Goldilocks's picture

Van Halen - Diver Down - Happy Trails
http://www.youtube.com/watch?v=hwYcsMiB2UM (1:06)

Mon, 05/06/2013 - 16:48 | 3535369 RafterManFMJ
RafterManFMJ's picture

I put my last 25K into Star Wars collector plates. There's no guarantee they will go up in price, but all the other ones have.

Mon, 05/06/2013 - 16:51 | 3535383 akak
akak's picture

The logic of your investment choice is undeniable.

Mon, 05/06/2013 - 17:25 | 3535502 Awakened Sheeple
Awakened Sheeple's picture

I'm trying to pick the bottom in baseball cards and beanie babies.

Mon, 05/06/2013 - 16:38 | 3535333 mayhem_korner
mayhem_korner's picture

 

 

Do you slip pills her drink when she's not lookin'?

Mon, 05/06/2013 - 16:48 | 3535353 web bot
web bot's picture

It's unbelievable how the financial world has become a gambling den...

Mon, 05/06/2013 - 16:49 | 3535374 akak
akak's picture

I blame Leo.

Mon, 05/06/2013 - 16:54 | 3535387 web bot
web bot's picture

Agreed!

Hey,. where's Orly? I think she's still doing our dishes?

Here's a drinking song in honor of you (all pirates that I know drink)! https://www.youtube.com/watch?v=U6wVFL8exsY

Mon, 05/06/2013 - 16:58 | 3535410 akak
akak's picture

I think she's out shopping for her $0.99/lb chicken breasts.

(Just hope her time machine is running smoothly.)

I happen to be making chicken stew myself at this very moment, but I can assure you that the boneless chicken breasts that I am using cost MUCH more than $0.99/lb (actually, $2.99/lb at the local butcher, who is cheaper than the local grocery store.)

Mon, 05/06/2013 - 16:49 | 3535373 PontifexMaximus
PontifexMaximus's picture

That's the soil, where bull markets (continue) to grow, thanks to the CB gardeners, with the political ok of us ALL! So, do not complain, enjoy the party!

Mon, 05/06/2013 - 16:50 | 3535378 thismarketisrigged
thismarketisrigged's picture

what are u guys talking about, today there was a major pullback. the dow lost 5 pts, its biggest down day in over a year i think, or at least it seems.

 

tomorrow i am sure ''retail investors'' will be buying this big drop in the dow.

Mon, 05/06/2013 - 17:04 | 3535435 exartizo
exartizo's picture

A possibly useful question;

"Under what conditions could the United States government be forced to stop manipulating the stock market"?

Mon, 05/06/2013 - 17:13 | 3535460 dracos_ghost
dracos_ghost's picture

"Under what conditions could the United States government be forced to stop manipulating the stock market"?

The Sun goes super-nova. And hell, even then they'd probably POMO for the 8 minutes before the event horizon hit earth just for shits and giggles.

Tue, 05/07/2013 - 09:07 | 3537177 esum
esum's picture

as soon as GS/JPMChase stops running the country

Mon, 05/06/2013 - 17:04 | 3535439 YHC-FTSE
YHC-FTSE's picture

We've seen this phenomena so many times the past few years nobody even says WTF any more. 

Low volume rallies should be ringing alarm bells with all the equity pundits,  but other than the usual, "Oh it's a HFT algo thingy" explanations,  I have yet to see a really in-depth analysis of this weird/surreal phenomena. Unless I missed one.

The funding sums involved must be massive to sustain a rally, but only shared between relatively few (in comparison to pre-2007) entities. Are they mainly primary dealer banks? Private equity firms? Hedge funds? All of the above? Maybe even the finance desks of large cap multinationals messing about with their offshore accounts?  AAPL comes to mind. 

Tue, 05/07/2013 - 08:59 | 3537152 esum
esum's picture

re van halen happy trails

http://www.youtube.com/watch?v=hgw_yprN_-w

 

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